Week 8 Presentation: Accounting and Occupational Frauds

This presentation analyzes accounting and occupational frauds, focusing on the pre- and post-Sarbanes-Oxley Act era. It examines the increasing number of financial scandals and the need for improved regulations, highlighting the involvement of top authorities, auditors, and the impact on employees and investors. The presentation explores the 'cooking the books' concept, the growth of capital markets, and the non-awareness of pension accounts as targets for fraud. It recommends adherence to IFRS, quick action by the SEC, and the implementation of whistle-blower policies. The importance of ethical company atmospheres and the role of auditors in maintaining public trust are emphasized. The presentation concludes by suggesting better methods for the SEC, bridging the gap between accounting firms and auditors, and allowing professionals time to reconcile differences between IFRS and GAAP.

Advance financial accounting

Introduction
• Fraud lead to breakdown of giant companies.
• Americans doubted law enactment.
• Efforts taken were not proving up to mark.
• Unethical dilemmas creates immoral activity at work.

Analysis
• Scandals are increasing and professionals started
demanding improved rules.
• Top authority held responsible for fraud.
• Need to implement laws by federal government.
• This fraud done within same department.
• Auditors was also involved.
• Result of this led dismissal of numerous old employee.

• Non existence of completely effective fraud
reducing programme.
• Frauds can likewise happen if there is an
occurrence of the bookkeeping standards and
also government organizations.
• Corporate officers abusing accounting
standards.

• Increase in unemployment in overall country.
• “Cooking the books” concept was introduced.
• Growth of capital market in U.S created
trusted money with investment and stocks.
• Capital market increased and specially mutual
fund investment.
• Non awareness regarding pension accounts
which became next target for
scandal(Needles, Powers & Crosson, 2013).

Recommendations
• Accounting standards related to IFRS
maintained.
• Quick action to be taken by SEC.
• Whistle-blower policies application should e
ensured.

• Ethics and atmosphere of the company work
for an employee is important.
• Responsibility of top executive to monitor
atmosphere.
• Good ethics practices lead to profitable results
and negative ethics lead to downfall.

• AICP suggested business to be operated in
honourable manner.
• Professionalism and honesty expected from
auditors.
• Accountants should maintain public trust and
become a role model (Agarwal & Medury,
2014).

Summary
• Fraud was not a new word.
• Website created by SEC to acknowledge about
litigation and scandals.
• Standards and principles are not working
effectively.

• Government should lift issues faced by
organisations.
• Involvement of IASB and IFRS to benefit all
parties of business.
• Money of investors is lost.
• Illegal amount paid was also included.

Conclusion
• Better methods available to SEC.
• Accounting firms should hold auditor to bridge
gap.
• Professionals should give time between IFRS
and GAAP which reduces disagreements.

References
• Agarwal, G. K., & Medury, Y. (2014). Internal
auditor as accounting fraud buster. IUP Journal
of Accounting Research & Audit
Practices, 13(1), 7.
• Needles, B. E., Powers, M., & Crosson, S. V.
(2013). Principles of accounting. Cengage
Learning.