Description
Unfortunately, people with access to a company’s financial statements may tweak them to look better than they really are. Therefore, accountants must carefully look at the financial statements in addition to their knowledge of generally accepted accounting principles (GAAP), Institute of Management Accountants (IMA) standards, and American Institute of Certified Public Accountants (AICPA) standards.
In this module’s resources, you learned how fraud is detected in financial statements. For this discussion, find a recent news article or case study published within the last five years that describes fraudulent activity a company has been involved in. To search for resources on the Shapiro Library website, use the following steps:
Under the Find Articles, eBooks, & More menu item, select Find News & Current Topics.
Use the Multi-Search field to combine key words. For example, “[Name of Company] and litigation” or “[Name of Company] and fraud.”
Use the Refine Results feature to limit the search to news articles from the past five years.
Review the search results to find a resource that piques your interest.
In your initial post, address the following:
Summarize an article that describes a recent news article or case study published within the last five years that describes fraudulent activity a company has been involved in. Include the following details in your response:
Include the citation.
Describe how the fraud was detected.
Explain whether you believe the situation was handled correctly.
Cite applicable standards from a governing body within accounting that validate your rationale. For example, you could use GAAP, IMA standards, and/or AICPA standards. Consider the following questions to guide your response:
Which standards were not adhered to if you believe the situation was not handled correctly?
Which standards were adhered to if you believe the situation was handled correctly?
Explain how you think the situation could have been avoided.
Explain how the accountant in this situation could remain unbiased and be ethical.
In your responses to two peers, address the following:
Do you agree with your peers’ responses on how the situation was handled? Why or why not? If you do not agree, provide at least one constructive suggestion on how to handle the situation.
Do you agree with your peers’ responses on how the situation could have been avoided? Why or why not?
Do you agree with how the accountant in the situation could remain unbiased and be ethical? Why or why not?
