The Pros And Cons Of Fraud

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WHAT IS FRAUD
In referring to the Association of Certified Fraud Examiners (ACFE), fraud is “a deception or misrepresentation that an individual or entity makes knowing that misrepresentation could result in some unauthorized benefit to the individual or to the entity or some other party”. In fraud, groups of unconscionable individuals manipulate, or affect the activities of a specific business with the purpose of earning money. Fraud manipulates the financial position of the organization and results in a loss of goods, money, and even goodwill and reputation. It is essential that organizations establish procedures and controls that prohibit employees from committing fraud and detect fraudulent acts whenever it occurs. The fraudulent activities …show more content…

Although, the Sarbanes-Oxley Act has enhanced corporate governance and lowered the incidence of fraud, recent studies reference that investors and management still have concerns about financial statement fraud. For example:
• The ACFE’s “2010 Report to the Nations on Occupational Fraud and Abuse” [1] found that financial statement fraud, which represent less than five percent of the cases of fraud in its report, was by the most costly, with a median loss of $1.7 million per incident. Some Surveys estimated that the standard organization loses 5% of its revenues by fraud each year. Gross World Product, estimated potential projected annual fraud loss of more than $3.5 trillion per year.
• According to “Annual Fraud Indicator 2012” made by the National Fraud Authority (UK), “The scale of fraud losses in 2012, against all victims in the UK, is in the region of £73 billion per …show more content…

2- Lesions can be learned from Satyam scandal?
4. RESEARCH METHODOLOGY
We inspected documented behaviours in cases of Satyam corporate, using the evidence published on press articles, and also do a “content” analysis to them. Regarding information collection “methodology”, we obtained evidence from the press coverage contained in the “Factiva” database. This study is primarily based on “secondary” sources of data (EBSCO host database) collected from the related journals, newspaper, books, statements, reports. As stated earlier, the nature of study is “primarily qualitative, descriptive and analytical”.

5. CORPORATE ACCOUNTING SCANDAL AT SATYAM COMPUTER SERVICES LIMITED: A CASE STUDY OF INDIA’S ENRON.
5.1

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