Acc 544 Week 5

Learning Team A Discussion Question week 5 Describe a common fraud connive for investment fundss and condone the influences that may be put in egress to proscribe the fraud. The Audit Case in Chapter 10 empower Go for the Gold was a keen example of investment fraud. Its a situation about gold mines where related parties, defrauded the strand by completing a series of complicated mergers and proceeding in order to increase the foster of the mines and use the blown-up value of the land as security for a $38 jillion bank loan. An internal control for that could have prevented this, is to have a separate person within the comp whatsoever review and esteem any(prenominal) relationships between two companies. Another control is for the thrust of directors to have a separate person to review any appraisals that may be relevant to the companys future investment strategies. In this instance, the auditors for the lending institution should have chartered indepe ndent appraisers to determine the value of the land instead of relying on the information provided by the Blues Brothers. interlocking Transactions of Enron compound transactions be employ within many elephantine organizations to camouflage and peel investing and financing transactions. These transactions be structured in a way that allows the organization to go around the GAAP rule. This is the case that led to the downfall of Enron. Enron utilise hundreds of off the book arrangements known as special societal function entities ostensibly to create vehicles for transactions such as pushing trading and on demand movies. (T. Louwers, 2007). These transactions were employ to hide more than a billion dollars worth of debt from auditors, investors, and creditors. This very(prenominal) stupendous corporation demonstrated the size and complexity of the immensity of apocalypse within the finance and investment cycle. The internal control involve in this sit uation is to have employees who can net and! recall transactions as they pertain to accounting standards....If you requirement to bugger off a full essay, order it on our website: OrderEssay.net

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