Unfortunately, people with access to a company's financial statements may tweak them to look better than they really are. Therefore, accountants must carefully look at the financial statements in addition to their knowledge of generally accepted accounting principles (GAAP), Institute of Management Accountants (IMA) standards, and American Institute of Certified Public Accountants (AICPA) standards.
In this module's resources, you learned how fraud is detected in financial statements. For this discussion, find a recent news article or case study published within the last five years that describes fraudulent activity a company has been involved in.
1: Summarize an article that describes a recent news article or case study published within the last five years that describes fraudulent activity a company has been involved in. Include the following details in your response:
a Include the citation.
b Describe how the fraud was detected.
2 Explain whether you believe the situation was handled correctly.
3 Cite applicable standards from a governing body within accounting that validate your rationale. For example, you could use GAAP, IMA standards, and/or AICPA standards. Consider the following questions to guide your response:
a Which standards were not adhered to if you believe the situation was not handled correctly?
b Which standards were adhered to if you believe the situation was handled correctly?
4 Explain how you think the situation could have been avoided.
5 Explain how the accountant in this situation could remain unbiased and be ethical.
