Submitted by: Submitted by baldwall18
Views: 1299
Words: 457
Pages: 2
Category: Business and Industry
Date Submitted: 11/21/2010 02:05 PM
Impact of Occupational Fraud and Abuse
Occupational fraud and abuse: The use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets.
If fraud happens to occur in the company it can have a devastating effect. It can cost the company millions of dollars. It can also damage the reputation of the company if the information goes public. It will make management look bad and incompetent.
It puts the company in hard position. They have the option to prosecute or they can just dismiss the employee. If they prosecute the information will go public. If they don’t prosecute it will appear that they are going soft on the employee.
U.S. governmental oversight of accounting fraud and abuse and its affect on the company
Because of companies such as Enron and World Comm the U.S. government has really cracked down on companies. They have put a lot of pressure on upper management. Upper management is now required to sign the financial statements stating that they have reviewed them and that no fraud has occurred
Also it has created many new requirements for auditing firms and their clients. Companies cannot hire accountants that have audited their company in the last year. The employee must go work for another company and then they can work for the company that they previously audited.
It has also created many new jobs for accountants. Internal auditing jobs have cost companies millions of dollars because of the new regulations. It would cost companies much more to not have the internal auditors.
Potential corruption schemes to be aware of within the company
Asset Misappropriation- Involves the theft or misuse of organizations assets
• Billing Schemes
• Payroll Schemes
• Expense reimbursement Schemes
• Check Tampering
• Register Disbusement Schemes
• Skimming
• Cash Larceny...