ACC2400 Chapter Notes - Chapter 5: Computer Fraud, Earnings Management, Stakeholder Analysis
2 Sep 2018
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Accounting info systems week 3 pre-reading ethics, fraud & cyber crime. Fraud and corruption is mainly perpetrated by employees, knowledge insiders, who know their organisation"s systems and controls. Earnings management = manipulating accounts to mislead shareholders and other stakeholders. Most large businesses and governments have a code of ethics set in their principles of good corporate governance. However, a set of general guidelines may not be specific enough to identify misbehaviour. As professionals, accountants are expected to maintain higher standards than society in general. Their ability to attract business depends entirely on their reputation. Unacceptable actions can result in expulsion from accreditations bodies. A decision framework that takes all stakeholders" effects into account before making a decision. Choices made relating to data gathered from customers, suppliers and employees (control and access to and misuse of private and confidential data) High numbers of computers within organisations means staff may be using them not for business purposes.
