Accounting scandals Wikipedia. Accounting scandals are business scandals which arise from intentional manipulation of financial statements with the disclosure of financial misdeeds by trusted executives of corporations or governments. Such misdeeds typically involve complex methods for misusing or misdirecting funds, overstating revenues, understating expenses, overstating1 the value of corporate assets or underreporting the existence of liabilities. It involves an employee, account or corporation itself and is misleading to investor and shareholders. This type of creative accounting can amount to fraud, and investigations are typically launched by government oversight agencies, such as the Securities and Exchange Commission SEC in the United States. Employees who commit accounting fraud at the request of their employers are subject to personal criminal prosecution. Two types of fraudeditMisappropriation of assetseditMisappropriation of assets, often called defalcation or employee fraud, occurs when an employee steals companys asset, whether those assets are of monetary or physical nature. Typically, assets stolen are cash or cash equivalents and company data or intellectual property. However, misappropriation of assets also includes taking inventory out of a facility or using company assets for personal purpose without authorization. Company assets include everything from office supplies, inventory to intellectual property. Fraudulent financial reportingeditFraudulent financial reporting, also known as earnings management fraud. Tally. ERP 9 is GSTReady ERP software used for Billing, Accounting, Inventory Management and Purchases by over million businesses across 100 countries. Data Science Training provides latest in the field of data science free paid training available around the world. Busywin 17 rel 4. Crack with GST Free Download Full Version 2017 ACTIVATED. BUSY Accounting Software is an integrated business accounting software for. In this context, management intentionally manipulates accounting policies or accounting estimates to improve financial statements. Public and private corporations commit fraudulent financial reporting to secure investor interest or obtain bank approvals for financing, as justifications for bonuses or increased salaries or to meet expectations of shareholders. The Securities and Exchange Commission has brought enforcement actions against corporations for many types of fraudulent financial reporting, including improper revenue recognition, period end stuffing, fraudulent post closing entries, improper asset valuations, and misleading non GAAP financial measures. The Fraud TriangleeditThe fraud triangle is a model for explaining the factors that cause someone to commit fraudulent behaviors in accounting. Free etds software rpu version 3. Busywin 17 rel 5. GST Ready Busy Accounting SoftwareBusy Software is a financial accounting software, GST, inventory management software, invoicebilling software, payroll management, CRM. It consists of three components, which together, lead to fraudulent behavior Incentives Pressure Management or other employees have incentives or pressures to commit fraud. Opportunities Circumstances provide opportunities for management or employees to commit fraud. Nnk1Tbu.png' alt='Mis Accounting Software Free Download Full Version India' title='Mis Accounting Software Free Download Full Version India' />Attitudes Rationalization An attitude, character, or set of ethical values exists that allows management or employees to commit a dishonest act, or they are in an environment that imposes sufficient pressure that causes them to rationalize committing a dishonest act. Incentives Pressures A common incentive for companies to manipulate financial statement is a decline in the companys financial prospects. Companies may also manipulate earnings to meet analysts forecasts or benchmarks such as prior year earnings, to meet debt covenant restrictions, to achieve a bonus target based on earnings, or to artificially inflate stock prices. As for misappropriation of assets, financial pressures are a common incentive for employees. Employees with excessive financial obligations, or those with drug abuse or gambling problems may steal to meet their personal needs. Opportunities Although the financial statements of all companies are potentially subject to manipulation, the risk is greater for companies in industries where significant judgments and accounting estimates are involved. Turnover in accounting personnel or other deficiencies in accounting and information processes can create an opportunity for misstatement. As for misappropriation of assets, opportunities are greater in companies with accessible cash or with inventory or other valuable assets, especially if the assets are small or easily removed. A lack of controls over payments to vendors or payroll systems, can allow employees to create fictitious vendors or employees and bill the company for services or time. Attitudes Rationalization The attitude of top management toward financial reporting is a critical risk factor in assessing the likelihood of fraudulent financial statements. Intel Hd Graphics Driver For Intel Pentium P6200 more. If the CEO or other top managers display a significant disregard for the financial reporting process, such as consistently issuing overly optimistic forecasts, or they are overly concerned about the meeting analysts earnings forecast, fraudulent financial reporting is more likely. Similarly, for misappropriation of assets, if management cheats customers through overcharging for goods or engaging in high pressure sales tactics, employees may feel that it is acceptable for them to behave in the same fashion. A weak internal control is an opportunity for fraudster. Lack of transparency in financial transactions is an ideal method to hide a fraud. Poor management information where a companys management system does not produce results that are timely, accurate, sufficiently detailed and relevant. In such case, the warning signal of fraud such as ongoing theft from bank account can be obscured. Lack of an independent audit department within the company is also a sign of weak internal control. Poor accounting practice is also part of a weak internal control. An example of poor accounting practice is failure to make monthly reconciliation of bank account. Top executive can reduce the price of hisher companys stock easily due to information asymmetry. The executive can accelerate accounting of expected expenses, delay accounting of expected revenue, engage in off balance sheet transactions to make the companys profitability appear temporarily poorer, or simply promote and report severely conservative e. Such seemingly adverse earnings news will be likely to at least temporarily reduce share price. This is again due to information asymmetries since it is more common for top executives to do everything they can to window dress their companys earnings forecasts. Top managers tend to share price to make a company an easier takeover target. When the company gets bought out or taken private at a dramatically lower price the takeover artist gains a windfall from the former top executives actions to surreptitiously reduce share price. This can represent tens of billions of dollars questionably transferred from previous shareholders to the takeover artist. The former top executive is then rewarded with a golden handshake for presiding over the firesale that can sometimes be in the hundreds of millions of dollars for one or two years of work. Similar issues occur when a publicly held asset or non profit organization undergoes privatization. Top executives often reap tremendous monetary benefits when a government owned or non profit entity is sold to private hands. Just as in the example above, they can facilitate this process by making the entity appear to be in financial crisis this reduces the sale price to the profit of the purchaser, and makes non profits and governments more likely to sell. It can also contribute to a public perception that private entities are more efficiently run, thereby reinforcing the political will to sell off public assets.