Corporate Fraud - 975 Words

Corporate FraudÂ…when you hear those words the first, most recent incident, many think of is The Enron Scandal. This same scandal produced the Public Company Accounting Reform and Investor Protection Act of 2002. This much needed act created the Public Company Accounting Oversight Board under the Security Exchange Commission s supervision. This board sets accounting standards and investigates Certified Public Accountants and companies to ensure they are following the guidelines set forth. This board has also been given the authorization to fine, suspend and recommend criminal investigations in the event CPA s and their firms violate the standards. (Lindstrom) To understand the stringency of this Act is to recognize what brought it†¦show more content†¦(Lindstrom) Hopefully the congressional meetings and hearings will cause other potential Enron/Arthur Anderson-followers to choose the legal path of doing business. Observers believe that it was not so much that the executives opted to mishandle their company, but that the scandal went without notice for so long by those people and groups which are set in place to detect and prevent dealings such as this. Auditors, internal/external controls, government regulators, accountants, etc., all failed to recognize the deception. Because the government was somewhat at fault for this, it is hard to make a decision as a whole, if the government should be the one to regulate or oversee corporate finances. Obviously, by what was seen with Enron alone, no matter how many committees, boards, groups, or agencies are involved, there is always a way to get around the legal system. The government needs to revert back to regulating certain entities (such as utilities, petroleum, etc.) before tackling the entire corporate financial world. This would cut in half the amount of companies they would have to deal. Monopolization of industries gives the companies too much power. They can charge whatever price they want and the consumer has no right but to pay it. It is comforting to be able to choose which telephone company you want to use and also what car you want to purchase. Why shouldn t you be able to choose what gas company or electricShow MoreRelatedCorporate Fraud Is A Big Part Of The Fraud1967 Words   |  8 Pagesall forms of fraud. There are a vast amount of fraud types out in the world today that some of us may not have even realized yet. With the immense amount of fraud that is occurring, how could so many people get away with committing it? The answer is there is too much fraud occurring for anyone to look into the smaller fraudulent acts. There are specifically two types of frauds that occur that focus a lot on the business aspect, Corporate and small business fraud. Small business fraud tends to appearRead MoreThe Anatomy Of Corporate Fraud Essay845 Words   |  4 PagesArticle Critique #1 The first article researched was The Anatomy of Corporate Fraud: A comparative Analysis of High Profile American and European Corporate Scandals. The abstract discusses the analysis conducted on the three major American accounting scandals; Enron, WorldCom, and HealthSouth, and compares to the three major European accounting scandals; Parmalat, Royal Ahold, and Vivendi Universal. Bahram Soltani (2014), also discusses within the abstract the different areas reviewed regardingRead MoreFinancial Statement Fraud And Corporate Financial Fraud1310 Words   |  6 PagesFinancial Statement Fraud Background Financial statement fraud is one of the biggest types of fraud in today’s business world. The complexity and mechanism of financial statement fraud brought the attention of auditors and regulators. 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In this paper we will focus on fraud, mainly occupationalRead MoreExecutive Compensation and Corporate Fraud1083 Words   |  5 PagesIntroduction: The past decade has been witness to some of the worst accounts of corporate fraud ever recorded, with multi-billion dollar companies such as Enron, Tyco, and World-com involved in serious financial scandals. CEOs and senior executives are often the driving force behind such unscrupulous activities by adopting shady accounting practices and other forms of short-termist actions for the purpose of increasing their firm’s stock price and their own personal wealth. The following paper will