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Unformatted text preview: BUSINESS ETHICS All employees within an organization are expected to act ethically in their business activities. Given the importance of ethical behavior to corporations and their owners (stockholders), an increasing number of organizations provide codes of business ethics for their employees. Despite these efforts, recent business scandals resulted in massive investment losses and numerous employee layoffs. A recent survey of fraud by international accounting firm KPMG reported a 13% increase in instances of corporate fraud compared to five years earlier. It noted that while employee fraud (such things as expense-account abuse, payroll fraud, and theft of assets) represented 60% of all instances of fraud, financial reporting fraud (the intentional misstatement of financial reports) was the most costly to companies. That should not be surprising given the long list of companies such as the most costly to companies....
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.
- Fall '11