Internal Accountant's Report to Management
Running head: INTERNAL ACCOUNTANT'S REPORT TO MANAGEMENT
Internal Accountant’s Report to Management ACCT 556
Introduction
As the internal accountant of the European Newspaper Company, I have to perform various financial operations, and I am considered the expert in this field. As we all are faced with preparation for the upcoming government contract bid, we need to have a better understanding of how our company runs the business and issues that we can face if we enter into this contract. It is vital to visualize the actual impact of occupational fraud and abuse in the company. We also need to know how the US government oversees the accounting fraud and abuse and its affect on the company. What potential corruption schemes to be aware of within our company? What kind of accounting evidence and methods of gathering such evidence to support the financial status review to choose? All these topics need great discussion where managers can have a full understanding to be able to make their decision that can impact our company as a whole. Section I The impact of occupational fraud and abuse on the company
The occupational fraud and abuse can have a shocking impact on the company. It can not only reduce the revenues, but it can also turn the profits into losses. To avoid the occupational fraud and abuse, the organization should follow different steps that help to recognize these problems before they arise. Several known methods can be used such as fraud schemes that are carried out by the purchasing department. These carried out in collusion frauds are the most financially harmful frauds because they can lead a business to lose up to 5% in the revenues. The most common types of occupational fraud and abuse are misappropriation of cash and corruption. Both misappropriation of cash and corruption can negatively affect the performance of the company. There are several kinds of corruption and they are bribery,
Internal Accountant’s Report to Management ACCT 556
Introduction
As the internal accountant of the European Newspaper Company, I have to perform various financial operations, and I am considered the expert in this field. As we all are faced with preparation for the upcoming government contract bid, we need to have a better understanding of how our company runs the business and issues that we can face if we enter into this contract. It is vital to visualize the actual impact of occupational fraud and abuse in the company. We also need to know how the US government oversees the accounting fraud and abuse and its affect on the company. What potential corruption schemes to be aware of within our company? What kind of accounting evidence and methods of gathering such evidence to support the financial status review to choose? All these topics need great discussion where managers can have a full understanding to be able to make their decision that can impact our company as a whole. Section I The impact of occupational fraud and abuse on the company
The occupational fraud and abuse can have a shocking impact on the company. It can not only reduce the revenues, but it can also turn the profits into losses. To avoid the occupational fraud and abuse, the organization should follow different steps that help to recognize these problems before they arise. Several known methods can be used such as fraud schemes that are carried out by the purchasing department. These carried out in collusion frauds are the most financially harmful frauds because they can lead a business to lose up to 5% in the revenues. The most common types of occupational fraud and abuse are misappropriation of cash and corruption. Both misappropriation of cash and corruption can negatively affect the performance of the company. There are several kinds of corruption and they are bribery,
References: Mulford, C. W., & Comiskey, E. E. (2002). The financial numbers game: Detecting creative accounting practices. New York, NY: Wiley. Singleton, T. W., Singleton, A. J., Bologna, G. J., & Lindquist, R. J. (2006). Fraud auditing and forensic accounting. (3rd ed.). Hoboken, NJ: Wiley. Wells, J. (2005). Principles of fraud examination. Hoboken, NJ: Wiley