Acc 556 Week 1

Topics: Balance sheet, Fraud, Political corruption Pages: 3 (1016 words) Published: October 8, 2011
Internal Accountant’s Report to Management
| |Accountant |



From: Internal Accountant


Re:Government Bid

Occupational fraud is defined as the use of a person’s job for individual enrichment through the purposeful mishandling or misapplication of his or her employer’s capital or assets (Wells, 2005). Occupational fraud can have a serious impact with far-reaching consequences. In 2004 for the Association of Certified Fraud Examiners (ACFE) conducted a survey that provided 508 usable studies of fraud for a total of over $761 million in losses. That number amount to an average of just under 1.5 million per organization. The fraud examiners that participated in the study had, on average, 16 years of experience and the study covered 16 different industries. In response to fraudulent activities the government created an organization called the Securities and Exchange Commission (SEC). His or her job was to streamline accounting practices and create rules to assist organizations in the proper preparation on financial statements. The SEC’s chairman created a nine-point action plan to assist in the detection of fraud. This action plan is outlined as follows: 1. Improved disclosure regarding the impact of changes in accounting assumptions. 2. Clarified accounting rules regarding purchased in-process restructuring charges, large acquisition write offs, and research and development. 3. Direction on qualitative key points in determining materiality in accounting measurements 4. Interpretive guidance for revenue recognition

5. Prompt resolution to the Financial Accounting Standards Boards definition of liabilities issues 6. Targeted reviews of any public company that announces restructuring liability reserves, has any major...

References: Mulford, C. W., & Comisky, E. E. (2002). The financial numbers game: Detecting creative accounting practices. (Rev ed.). New York, NY: Wiley.
Wells, J. (2005). Principles of Fraud Examination (3rd ed.). Hoboken, NJ: Wiley.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • ACC 541 Week 1 Research Paper
  • ACC 492 Week 1 Discussion Questions Essay
  • ACC/542 Week 1 Essay
  • ACC 205 Week 2 Essay
  • Acc 544 Week 1 Essay
  • Acc/291 Week 1 Essay
  • acc 230 week 8 Essay
  • Essay about ACC 561 Week 1 Financial Statement Differentiation Study Guide

Become a StudyMode Member

Sign Up - It's Free