Case Analysis 3 - Case Analysis From your Business and...

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Unformatted text preview: Case Analysis From your Business and Professional Ethics for Directors, Executives, and Accountants text, read the Ethics Case "Theft Reimbursement, Twice" on pp. 414–415. Answer all questions on p. 415. In addition, please indicate what preventive and detective controls can be put in place to prevent this from happening again. Introduction According to our textbook, a professional accountant’s judgment should be based; input, upon an understanding of the critical value added by a professional accountant. Judgment and values • Credibility • Competence • Integrity • Honesty • Objectivity The values provide by the integrity, honesty and objectivity are essential to the proper discharge of fiduciary duties. Competence is so important, that must be protected by the profession in advance to assure its future; and the credibility of the profession, rest on the values of the person; personal and professional ethical values of each individual member and the quality of judgment exercise. In regards to our case scenario which is an employee and management fraud, recent studies made by Klynveld, Peat, Marwick and Goerdeler, LLC (KPMG), Fraud and Misconduct survey 2010 shows “The value of frauds committed by employees has double during the past two years with the average case now costing victims $3 million. The survey found that 61% of cases, there was no recovery of cash stolen, and that the average time to detect major fraud has increased from 342 days to 399 days. It also confirms the traditional profile of the average fraudster: a 38-year old male, who has been with a business for several years and holds a management position”. P e r c e i v e d P r e s s u r e R a t i o n a l i z a t i o n Perceived Opportunity P e r c e i v e d P r e s s u r e R a t i o n a l i z a t i o n Perceived Opportunity P e r c e i v e d P r e s s u r e R a t i o n a l i z a t i o n Perceived Opportunity P e r c e i v e d P r e s s u r e R a t i o n a l i z a t i o n Perceived Opportunity P e r c e i v e d P r e s s u r e R a t i o n a l i z a t i o n Perceived Opportunity The fraud triangle...
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This note was uploaded on 01/08/2012 for the course ACCOUNTING AC573 taught by Professor A.pidgeon during the Spring '11 term at Keller Graduate School of Management.

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Case Analysis 3 - Case Analysis From your Business and...

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