4 pages/≈1100 words
Accounting, Finance, SPSS
F & C International (Case Study Sample)
1. despite sarbanes oxley, corporate fraud is still pervasive. suggest three (3) NEW ways that you believe will eradicate corporate fraud. 2. in the F&C international case, inventory manipulation was used to enact the fraud. discuss the proper internal controls needed over inventory and how these controls will act as a deterrent to fraudulent activities. 3. if you were Catherine Sprauer at F&C international indicate what you would have done following each of the confrontations she had with the two (2) employees who insisted that F&C executives were involved on a fraudulent scheme to misrepresent the company's financial statements. 4. discuss how accounting firms should modify their audit procedures to ensure the risk of financial fraud is minimized. 5. discuss how the SEC continues to fail to detect fraudulent activities in publically traded companies. suggest a recommendation for improvement. 6. evaluate whether legislation and regulatory agency oversight will increase or decrease corporate fraud. explain your position source..
Corporate Fraud Name Institution Affiliation Course Date of Submission Question 1 Corporate fraud has been rampant even after the enactment of Sarbanes Oxley act. This is because there are barriers that deter full implementation of t he act paving way for a continued corporate fraud. New measures need to be considered to eradicate corporate fraud ensuring investors’ security of their money. The work environment must be defined in a manner that reinforces the anti-fraud behavior. The stakeholders have to lead through their commitment to do the right things for the good of the company. The policies and procedures has to specify actions of fraud in a company and actions taken when there is a detection of any kind of fraud. The policies must be enforced fairly and in consistence with the company’s processes. In t he process of hiring management the board must ensure that a routine check to the process, in addition to all venders and suppliers before their approval. This allows the company’s business associates be credible, as there references are checked routinely. The internal control system must be set in a way duties are segregated in manner that reconciliation of account statements are easily monitored and controlled where spot checks are conducted without announcement (Jickling, 2004). Compliance with regulations and legislative measure enhances employees to be cautious while committing fraud. This improves the internal control enforcement through creation of business code of conduct and the institution of mandatory training. Question 2 Proper internal control is required to eliminate the thread of fraud. Internal controls are methods and procedures employed in safeguarding assets and management of resources minimizing errors in accounting records to deter fraud. There are various factors that require consideration in setting internal control system. The control environment must set a tone that influences control consciousness of employees. This is...
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