Week 6 – Discussion Questions
Participation requires comments on weekly readings. Each student’s posting should be unique!
Please, provide a response to the following questions during Week 6 of the course. Remember, we are using Eastern Time in the Continental U.S.
1.What is a conflict of interest? Please, provide an example you have encountered or are aware of from your business or personal life.
2.Assume an employee is responsible for purchasing an apartment complex on behalf of his company. The employee owns stock in the management company that operates the apartment complex. The employee does not let his company know about his stock ownership and proceeds to make the purchase. Why does this example represent a conflict of interest?
3.Management of a cellular phone company learns a new technical advance will occur within the next year that will make the company’s current phones and related products obsolete. As a result, there is a strong chance the company will close. When financial statements appear for auditors, management does not reveal its knowledge of the new technology. In this case, what accounting and reporting concepts are involved?
4.What is the motivation for violating the generally accepted accounting principle of matching revenues and expenses? What is the result of committing this fraud?
5.What is the motivation for violating the generally accepted accounting principle of matching revenues and expenses? What is the result of committing this fraud?
In 3 to 4 sentence let me know what you learn from this weekâ€™s reading.
This week our readings relate to conducting a fraud investigation requires planning, documentation, and good judgment. Access the article http://www.eisneramper.com/conducting-fraud-investigations.aspx Consider the links to the right of the reading panel for additional ideas for fraud investigations.
As business professional consider the guidance in the article http://bbforensic.com/what-to-do-if-you-suspect-fraud-in-your-organization/ Learn more as you click the links to the left of the main article.
Fraud arrives in many forms. Learn more as you read https://www.fbi.gov/scams-safety/fraud/internet_fraud
The Federal Government is very concerned about Fraud. Defining and identifying fraud are key to detection and deterrence. Read more at http://www.ic3.gov/crimeschemes.aspx
The textbook reading for the week 6 are Chapter 11 on Conflicts of Interest, Chapter 12 on Accounting Principles and Fraud and Chapter 13 on Financial Statement Fraud Schemes. Discussion questions are provided for this week relating to those chapters.