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Many governments have lost a lot of money on unscrupulous individuals; a fact that calls for a need for developing stringent control procedures that do not put the state employees in positions of committing fraud (Byun & Roland-Luttecke, 2014).
According to Ball (2009), financial reporting is one of the root causes of accounting scandal. The rationale for financial reporting is to give financial information about entities that may be of use to the potential lenders, investors, creditors, and the government to guide it in decision-making. The state decisions may include buying or holding equity or providing guidance on whether to borrow money for development. Many cases exist where organizations and government officials exhibit discredited behavioral patterns.
Primarily, there are three categories of people in an organization who engage in financial scandals. The dishonest individuals range from chief financial officers who always conceal their true picture and the performance of the government department to maintain their status and to keep aside personal income for their benefits. The middle and lower level of management always falsify information related to their area of work or responsibility (Enofe, 2010). The main aim of engaging in this form of financial accounting is to hide their poor performance abilities or to gain undeserving bonuses, which incurs losses to the government.
At the organizational level, the institution can give false financial statements for getting access to credit facilities or inflating the prices of properties that the government is planning to sell. Whereas many governments have reviewed their financial auditing systems to tame accounting fraud, many frauds that have arisen from manipulated audit results are great indicators that financial auditing cannot be solely relied on as a fraud detection strategy. Fraudulent reporting, which is the major form of financial scandal can have negative consequences that may hurt not
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The intention of this study is cosmetic accounting that can be represented by the income smoothing technique. This consists in deliberate using of accounting policies to report the series of income as low from one period to another for the purpose of showing low wealth to shareholders. This way, the management can reduce the net income’s fluctuations from one period to another.
The literature have suggested that with the increase of adversity in climate change there is a solid chance that the world can turn into next ice age or par more global poverty. The economies are built on system of industries which are regulated by high emission of energy and their maturity can be affected and result in more economic crisis.
They include the artificially low interest rates, toxic mortgage backed securities, housing bubble, excessive and risky financial innovation, shadow banking system, trade deficits and others (Cornelius, pp. 29-33, 2003). However, one very important cause or contributing factor to the current recession was the accounting practices and the entire accounting system in the United States (Rittenberg, Johnstone, Gramling & Schweiger, pp.
A considerable population of marijuana smokers is represented by the school-going teenagers. The 2012 Monitoring the Future (MTF) Study found that as many as 45.3 per cent of the 12th graders in the US have used marijuana at least once whereas 22.9 per cent reported having smoked marijuana within the last 30 days (“Adolescents and Marijuana”).
This has been highlighted by the numerous financial reporting scandals that have arisen lately that have had national and international repercussions. To understand the importance of this unique field, one needs to understand what financial reporting does.
Typical examples of outsourcing jobs include medical transcription, information technology, human resources, law, education, and accounting. It is also not uncommon for companies to outsource customer support and call center functions, manufacturing and engineering.
The legislators in the various states have responded to such public aspirations by calling for mandates for accountability and the setting of stringent performance criteria. The entire premise behind this activism is that the onus of accountability and the possibility of a scrutiny will make the government and non-profit organizations act as responsible custodians of public wealth and will make them utilize the resources more efficiently and productively (Granof, 2002).
s, unintentional injuries, and violence.” (Mokdad, Marks, Stroup & Gerberding 2000) Professional health care practitioners are constantly vigilant on monitoring alcohol dependents, especially if it exists in conjunction with other illnesses. The negative effects that
Here we will be discussing one such scandal which rocked the world in October, 2001 – The Enron Scandal. The company was established in the year 1985 and quickly rose to become one of the major organizations. It became a very famous company and reigned all through the
The author of the essay entitled "Monopoly" states that several socioeconomic and political circumstances are responsible for the creation of a monopoly. Furthermore, it is stressed that a monopoly is detrimental to the economy of a country in that it reduces the purchasing power of the consumers, paves way for lower quality services or products, and creates unemployment.
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