SATYAM: INFLUENCING FACTORS AND HOW TO PREVENT THE SAME FRAUD?
ABSTRACT
Recently, most of biggest fraud and Satyam fraud cases are causes from human ethics. When the human ethics is low integrity, the fraud can begin from the opportunity or the situational pressure based on the organizational environment. Based on fraud report cases, the worst biggest fraud comes from accounting frauds, now what the accounting frauds means; accounting fraud occurred when workers in the organization take benefits from their position by stealing cash or asset. [1] Actually the lower ethics factors and the accounting activities fraud are related with white collar crime. Nowadays, white collar crimes are criminal acts that are performed by people that have potential position and power in organization committed for financial gain. [2]There are have several categories types in accounting fraud like payroll, invoice, account payable, accounts receivable, financial statement and tax fraud. And then, the white collar crime also has several types like computer, bankruptcy, health care, telemarketing, credit card fraud, embezzlement the activities in violation of statutory laws like bribery, kickbacks, money laundering and so on. [3] Conclusion, Satyam fraud cases is unique accounting scandal refers the white collar crime causes the main player is their Satyam founder and he did the accounting fraud activities, that related with internal controls of ethics in the corporate governance.
Salah satu assignment aku... korang baca abstrak sudahlah.. bahasa inggeris aku kelaut skit.
Nah belanja skit conclusion kes fraud ni:
Conclusion of Fraud Analysis
Have several activities that did by Mr. Raju are listed below become the main factor of the fraud:
1. Maintaining Records: Mr. Raju maintained thorough details of the Satyam’s accounts and minutes of meetings, since 2002. Details of accounts from 2002 till January 7, 2009 were stored in two separate Internet Protocol (IP) addresses.
2. Fake Invoices and Bills: Fake invoices and bills were created using the software applications. A secret program was allegedly planted in the source code of the official invoice management system creating a user ID “Super User” with the power to hide, or show the invoices in the system. Raju admitted to faking revenues, clients and even profits. The CID told the court that “Raju even falsified number of employees in the company by 13,000 and pocketed the money spent as salaries for these non-existent employees. He also faked 7561 invoices which raked up fake revenues to the tune of Rs. 5,117 crores, and raked up fake cash worth Rs. 3,983 crores. He tampered with the invoice management software to give birth to this massive scam which is worth Rs. 7,900 crores in its totality.
3. Web of Companies: A web of 356 investment companies was used to allegedly divert funds from Satyam Computers Limited. All these companies had several transactions in the form of inter-corporate investments, advances and loans within and among them.
4. Why did he need the Money? The cash so raised was used to purchase several thousands of acres of land, across Andhra Pradesh, to ride a booming realty market.
5. The Modus Operandi of Accounting Fraud: Satyam’s top management simply cooked the company’s books by overstating its revenues, profit margins, and profits for every single quarter over a period of 5-years, from 2003 to 2008.
6. Riding a Tiger: Raju was compelled to admit to the fraud following an aborted attempt to have Satyam invest $1.6 billion in Maytas Properties and Maytas Infrastructure On. The attempt finally failed, and Raju made the stunning confessions three weeks later.
7. Truth in Numbers: SEBI requires Indian publicly held companies to ensure that independent directors make up at least half their board strength. The knowledge available to independent directors and even audit committee members is inherently limited to prevent willful withholding of crucial information.
8. Punishment by the Court: Accused in the case, including Raju, were charged with cheating, criminal conspiracy, forgery, breach of trust, inflating invoices, profits, faking accounts and violating number of income tax laws. The CBI has filed three charge-sheets in the case which were later clubbed into one massive charge-sheet running over 55,000 pages. Over 3000 documents and 250 witnesses were parsed over the past 6 years. [14]
baca lanjut boleh google je satyam fraud, terus keluar macam2..
atau boleh baca kat sini http://www.accountantnextdoor.com/what-is-accounting-fraud-meaning-types-and-characteristics/
Recently, most of biggest fraud and Satyam fraud cases are causes from human ethics. When the human ethics is low integrity, the fraud can begin from the opportunity or the situational pressure based on the organizational environment. Based on fraud report cases, the worst biggest fraud comes from accounting frauds, now what the accounting frauds means; accounting fraud occurred when workers in the organization take benefits from their position by stealing cash or asset. [1] Actually the lower ethics factors and the accounting activities fraud are related with white collar crime. Nowadays, white collar crimes are criminal acts that are performed by people that have potential position and power in organization committed for financial gain. [2]There are have several categories types in accounting fraud like payroll, invoice, account payable, accounts receivable, financial statement and tax fraud. And then, the white collar crime also has several types like computer, bankruptcy, health care, telemarketing, credit card fraud, embezzlement the activities in violation of statutory laws like bribery, kickbacks, money laundering and so on. [3] Conclusion, Satyam fraud cases is unique accounting scandal refers the white collar crime causes the main player is their Satyam founder and he did the accounting fraud activities, that related with internal controls of ethics in the corporate governance.
Salah satu assignment aku... korang baca abstrak sudahlah.. bahasa inggeris aku kelaut skit.
Nah belanja skit conclusion kes fraud ni:
Conclusion of Fraud Analysis
Have several activities that did by Mr. Raju are listed below become the main factor of the fraud:
1. Maintaining Records: Mr. Raju maintained thorough details of the Satyam’s accounts and minutes of meetings, since 2002. Details of accounts from 2002 till January 7, 2009 were stored in two separate Internet Protocol (IP) addresses.
2. Fake Invoices and Bills: Fake invoices and bills were created using the software applications. A secret program was allegedly planted in the source code of the official invoice management system creating a user ID “Super User” with the power to hide, or show the invoices in the system. Raju admitted to faking revenues, clients and even profits. The CID told the court that “Raju even falsified number of employees in the company by 13,000 and pocketed the money spent as salaries for these non-existent employees. He also faked 7561 invoices which raked up fake revenues to the tune of Rs. 5,117 crores, and raked up fake cash worth Rs. 3,983 crores. He tampered with the invoice management software to give birth to this massive scam which is worth Rs. 7,900 crores in its totality.
3. Web of Companies: A web of 356 investment companies was used to allegedly divert funds from Satyam Computers Limited. All these companies had several transactions in the form of inter-corporate investments, advances and loans within and among them.
4. Why did he need the Money? The cash so raised was used to purchase several thousands of acres of land, across Andhra Pradesh, to ride a booming realty market.
5. The Modus Operandi of Accounting Fraud: Satyam’s top management simply cooked the company’s books by overstating its revenues, profit margins, and profits for every single quarter over a period of 5-years, from 2003 to 2008.
6. Riding a Tiger: Raju was compelled to admit to the fraud following an aborted attempt to have Satyam invest $1.6 billion in Maytas Properties and Maytas Infrastructure On. The attempt finally failed, and Raju made the stunning confessions three weeks later.
7. Truth in Numbers: SEBI requires Indian publicly held companies to ensure that independent directors make up at least half their board strength. The knowledge available to independent directors and even audit committee members is inherently limited to prevent willful withholding of crucial information.
8. Punishment by the Court: Accused in the case, including Raju, were charged with cheating, criminal conspiracy, forgery, breach of trust, inflating invoices, profits, faking accounts and violating number of income tax laws. The CBI has filed three charge-sheets in the case which were later clubbed into one massive charge-sheet running over 55,000 pages. Over 3000 documents and 250 witnesses were parsed over the past 6 years. [14]
baca lanjut boleh google je satyam fraud, terus keluar macam2..
atau boleh baca kat sini http://www.accountantnextdoor.com/what-is-accounting-fraud-meaning-types-and-characteristics/
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