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Auditing & Tax

In: Business and Management

Submitted By milki
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Preamble

When we think of corporations today we consider them to be responsible, thanks to CEO's and business advocates portraying it to be so. This concept of believing in corporate goodness is naïve. The cases involving Enron and WorldCom prove just that. This leads us to the taboos in corporate social responsibility discourse. These taboos are rarely discussed, yet it is a very important topic. According to Berger and Luckmann, "from the social constructionist's perspective, social reality is built around and becomes understood through discourse. However, some discourses have a higher 'truth' value than others. As a consequence they easily become generally accepted, sometimes even considered as absolute truths that are not easily questioned".
Businesses, non-profit agencies and even the government are all victims of both fraud and theft on a daily basis. Business owners are sometimes blindsided by these actions and may be unaware of the fraud due to lack of accounting experience or expertise. In almost every community, large or small, there are news stories about theft from employees. In several cases, unfortunately, the theft is from those entrusted to perform accounting functions. By the time fraud or theft is detected, sometimes thousands and even millions of dollars are already missing.
Another downfall of accounting fraud and theft is the potential for customers and investors to lose confidence in the company or organization’s management. According to the Federal Bureau of Investigation (FBI), some cases of accounting fraud and theft or not even reported. Companies fear the bad press that is associated with reporting internal crimes. Like anything else, the best protection for accounting fraud and theft is prevention.

International Corporate Fraud Trend Corporate frauds are likely to be uncovered in many countries. In the leading…...

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