According to the 2012 Report to the Nations (ACFE, 2012, p. 10) published by the Association of Certified
Fraud Examiners, financial statement fraud is a scheme “in which an employee intentionally causes a misstatement
or omission of material information in the organization’s financial reports (e.g., recording fictitious revenues,
understating reported expenses or artificially inflating reported assets).” While financial statement fraud was
involved in less than 8% of the cases studied, it caused the greatest loss, with a median loss of $1 million. Financial
statement fraud can have a devastating effect on a corporation and its stakeholders; many cases end in bankruptcy of
the firm. According to the report
According to the 2012 Report to the Nations (ACFE, 2012, p. 10) published by the Association of CertifiedFraud Examiners, financial statement fraud is a scheme “in which an employee intentionally causes a misstatementor omission of material information in the organization’s financial reports (e.g., recording fictitious revenues,understating reported expenses or artificially inflating reported assets).” While financial statement fraud wasinvolved in less than 8% of the cases studied, it caused the greatest loss, with a median loss of $1 million. Financialstatement fraud can have a devastating effect on a corporation and its stakeholders; many cases end in bankruptcy ofthe firm. According to the report
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