Essays on Corporate Fraud

Introduction

Some people may be confused when it comes to give the definition of whistleblowing, According to Weimer (2014), whistleblowing is the manifestation of an ethical concept implying spreading information of somebody, who is in danger or in a risky situation among some higher-ranked officials, so in case of being accused a person will be fined or sanctioned. The concern raised may be raised externally or internally in order to inform people about wrongdoings. There are many complaints, which can be viewed as whistleblowing. For such issues the protection by law has to be provided. These complaints are criminal offences ...

The neoclassical theory of the firm explains that firms are run entirely for the profit motive of its owners. This has been a widely held theory for many years, with the knowledge that all businesses are purely profit maximizing entities, whose intention is to make profit regardless of the circumstances, actions or omissions.

The profit motive assumption postulates that all actors in the business enterprise are driven by the need to increase their earnings from the business profits. The management wants to earn large pay and bonuses whereas the shareholders want to increase their value for their stocks.

Adam smith, ...

Capstone Project

What second topic have you selected for this assignment? Explain. I have selected corporate or white collar crimes for the second topic. The last few years witnessed the scandals in the global corporate scene among the U.S. and European companies and their counterparts in the other parts of the world. Corporate crimes are synonymous to “Corporate frauds,” “corporate breakdown,” “accounting scandals,” “corporate scandals,” among others, have been tagged to these corporate controversies (Ball, 2009). One of the best and most popular examples of corporate crimes is the case of Enron. This happened some years ago and such type ...

Abstract

The 2008 financial crisis provides several examples that can now be cited to illustrate the entire financial system’s vulnerabilities and ample room for improvement. This paper uses the Satyam fraud case to illustrate the ruses and machinations utilized both internally and externally by those publically entrusted to easily perpetrate fraud on a grand scale. The paper cites the methods used to carry out the fraud and the major events leading to the fraud being revealed followed by the monetary, commercial, and public damage the scandal caused. The paper will show how top management with both internal and external auditors ...

Independence is the cornerstone of the accounting profession. Without it, any opinion rendered cannot be relied upon by outside parties. An auditor must not only be independent in fact but also in appearance. According to Hill and Booker (2007), both are studied to understand what independence is required in the profession but research evidence related to independence in fact requires far more effort as it involves information that is not always publicly available (as cited in Daniels and Booker, 2011, pp. 79). In previous years, it has been a common practice that auditing firms also provide tax and consulting ...

CORPORATE CRIME

Corporate crimes are crimes that are caused by corporate bodies or crimes committed by person acting on behalf of corporate bodies. A corporate crime usually includes; corporate corruption, white collar frauds, environmental pollution, insider trading and tax evasion, misleading information to consumers and workers death. In the recent past corporate crimes have became very rampant in our societies, a day hardly pass without a story of investment frauds, corporate corruption and other forms of corporate crime being reported.1 And mainly these crimes are committed by big companies which are financially powerful and therefore the authorities involved fear to take action on ...

Introduction

Satyam limited, which is a Nasdaq-listed company, is one of the largest Global IT services firm. It has a portfolio of Major American and Australian companies such as Coca Cola, Citigroup, Telstra and Quantas.

The former chairman of the company, Ramalinga Raju admitted he had been tampering with the books of accounts. The company had been experiencing losses which he was covering up to reflect that the company was making a profit. He shockingly revealed that 94% of the cash and other assets, amounting to US$1 Billion, of the company did not exist. There was also the pressure from the market ...