ACCT 4150 Lecture Notes - Lecture 2: Financial Statement, Accounting, Whistleblower
Document Summary
Fraud is an intentional act involving the use of deception that results in a misstatement of the financial statements. The three elements are: incentive, opportunity, and rationalization. Factors associated with those elements are referred to as red flags. I will lose everything if i don"t c. I intend to pay it back at some point: something is owed by the organization because others are treated better e. I simply do not care about the consequences of my actions or of accepted notions of decency and trust; i have to look out for yourself. Recent history of fraudulent financial reporting: examples, patterns imply the following, the auditor should be aware of the pressure that analyst following and earnings expectations create for top management b. Long-term sustainable grown in shareholder value: management creating a culture of performance with integrity and ethical behavior, transparency.
