Suchergebnisse

• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 41: Livedoor (Japan, 2006)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …closely watched in Japan, not only because Horie was a celebrity, but also because it was seen as a test of how serious the authorities were about… …University, Horie built Livedoor by combin- ing a portal site with online brokerage and banking as well as a host of other inter- net services. (It offered… …: “It’s a world of connections, that’s it. If you are young, have no connections and you are from a modest family, there’s nothing you can do, your whole… …price: the deal involved a publishing firm that Live- door apparently already owned. Livedoor had arranged for an investment group it controlled to buy… …, in April 2006, Livedoor lost its listing. The TSE said the company had so far failed to clear up the suspicions that it had deceived investors… …prison. The presiding judge at the Tokyo district court said it was an extremely malicious crime that caused great damage to investors; the company’s… …invited criticism that he was singled out while others found guilty of similar violations had been let go with much lighter penalties. In Japan, it is… …, but the court ruled it was black.” Horie’s defence team tried to portray him as a meek chief executive who relied so heavily on advisers that they… …Court rejected Horie’s appeal of the district court conviction. The appeals court said it agreed with the ruling, arguing that Horie as chief executive… …issue. One Tokyo lawyer said: “It is all politics. Everyone thought this was going to be the next Enron, but now that the dust has settled, it looks to…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 42: Nikko Cordial (Japan, 2007)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …third-largest stockbroker- age group. As one of the nation’s leading securities houses, it should have been set- ting a good example on corporate disclosure for… …supervised status as it investigated whether the violations met the criteria for delisting. In the weeks to come, the share price plunged on speculation that… …gave the go-ahead to falsify the issuance date. Nikko Cordial behaved the way most Japanese firms do when misdeeds come to light: it promptly… …financial state- ments to the TSE, and in March the TSE announced its decision, which surprised most market participants. It decided not to delist Nikko…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 43: Sanyo Electric (Japan, 2007)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Electric Co. struggled with heavy financial losses as it faced a brutally competitive pricing market for many of its products. These products (including… …should have accounted for USD 1.5 billion in subsidiaries’ losses in 2004 but booked only around USD 400 million, thus falsely reporting a profit when it… …was largely in the red. In February 2007, Sanyo admitted that it had been approached by Japan’s Secu- rities and Exchange Surveillance Commission… …(SESC) about its past accounting. Sanyo announced that the SESC was investigating it for allegedly failing to account for valuation losses made on… …the losses were focused on its LCD unit (which it liquidated later on) and its chip making division. Eventually, Sanyo said it might have to… …restate its earnings for the four years between 2000 and 2004. The investigation was a blow to Sanyo at a time when it made great efforts to turn… …temporarily after being implicated in financial statement fraud at Kanebo, the cosmetics firm. It had also been the auditor for Nikko Cordial, which had to… …and her reliance upon a consultancy firm run by her husband. In December 2007, Sanyo admitted that its group figures were wrong since 2000. It… …said it miscalculated earnings from dozens of subsidiary companies to the tune of USD 3.5 billion over six years to March 2006. In March 2004, it had… …falsely reported a profit instead of a loss. Sanyo apologized to investors, saying it would strengthen its management team and internal controls, but…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 44: Satyam Computer Services (India, 2009)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …confidence in India Inc., and it is very difficult to restore their confidence.” In 2009, Satyam Computer Services was the fourth-largest Indian… …expanded it from a handful of employees into a back-office giant with a workforce of 53,000 and operations in 66 countries. Satyam delivered… …outsourcing solutions to nearly 700 clients, including 185 “Fortune 500” companies. Thus, it served as the back-office for some of the largest banks… …responsible for clients’ finances and accounting.) “For years, Ramalinga Raju was lionized as one of the whiz-kids of the Indian IT sector,” said one… …started as a mar- ginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years. It has… …attained unmanageable propor- tions as the size of company operations grew,” Raju wrote. “It was like riding a tiger, not knowing how to get off without… …lents were, in fact, made out of thin air. Revenue for the quarter was 20% lower than reported, and the company’s profit margin was a fraction of what it… …staff. – Merrill Lynch, the U.S. investment bank, was engaged by Satyam to explore merger opportunities for the IT outsourcing giant. But within just… …fluctuations in the amount of “unbilled revenue” the company reported. (Unbilled revenue is work done for a customer but not yet invoiced: it represents future… …earnings. Accounting Fraud in Asian Companies 252 However, there is usually little documentation associated with the number, so it is easy to…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Fraud Theories

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Fraud Case Analysis: Lessons Learned 276 3.3 Fraud Theories 3.3.1 The Fraud Triangle Although it is common knowledge today that people… …may commit fraud, it is often not understood why they do it. Donald R. Cressey, one of the pioneers in fraud re- search, came to the conclusion that… …less rationalization it takes to motivate someone to commit a fraud. Likewise, the more dishonest a person is, the less opportunity or the less… …pressure it takes to motivate fraud. Fraud-fighters focus their preventive efforts primarily on only one of the three elements of the fraud triangle… …simply in the outcome. Scientists call this motivation the “ego challenge”: it relates to the sense of superiority over others and to the gratification… …obtained from the mastery of an exciting situation. It also reflects the pride of a professional “con artist”. Attitudes are the values and ethical… …honest all the time. Another 20% are basically dishonest, and about 60% are “situationally honest” (that is, honest where it pays to be honest and… …dishonest where it pays to be dishonest). However, most of the organizations are convinced that their executives are among the 20% who are honest. Unfortu-… …nately, quite frequently, this is not the case. Rationalization is how the fraudster justifies his inappropriate actions. In other words, it is the… …soon as we get over this financial difficulty.” – “Business is business. Everybody else does it.” Of course, there are countless other…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Chapter 4: Conclusion and Outlook

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …, relatively infrequent in occurrence), and it must be shocking (that is, counter to our norms and values). Wilson argued that the public pays little attention… …sible for fighting fraud, one inevitable reality remains: “fraud happens”. It is a given that economic crime will always be with us. Eliminating fraud is… …a super- human task. However, a review of the scandals shows that in most of the cases, it is basically the same common pattern. A company faced… …. Often it starts as a one-shot deal to meet short term fi- nancial expectations. But it escalates to ongoing fraudulent activity until, with some… …accounting fraud can be summarized as follows (see Young 2004, pp. 11–13): 1. It generally doesn’t origin from conscious dishonesty. It doesn’t start… …because the CEO is dishonest, or because the CFO is dishonest. It also doesn’t start because the company had the misfortune of hiring a group of dishonest… …employees in its accounting department. 2. It origins from pressure. In particular, it starts with an environment in which two things are present… …: challenging targets of financial performance, and the perception that missing these targets will be viewed as unforgivable. 3. It starts out small. The… …fraud starts with little alterations of results (typically in the form of borrowing from future quarters). It doesn’t start with a grand plan or… …conspiracy. Often, the one or two perpetrators don’t even realize that they are stepping over the line and might be violating accounting standards. 4. It…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  A Practice Aid for Company Executives: The Ethics Barometer

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …290 Appendix: Practice Aids Appendix I A Practice Aid for Company Executives: The Ethics Barometer It is essential that the board and… …. However, it is advisable to tailor the content of the barometer to the situation in which the organization finds itself. For achieving customization… …honest and reliable: he does as he says and fulfils his responsibilities. A.11 In my immediate working environment, it is sufficiently clear how… …. A.12 It is easy for me to comply with the company’s standards of conduct because there is a strong level of commitment from top management and… …standards of conduct is provided to me when I need it and is clear and easy for me to understand. C.4 The training is effective in guiding my decisions… …first-hand knowledge about misconduct, I would feel comfortable reporting it to my colleagues or my supervisors. C.8 If I observed or had first-hand… …knowledge about misconduct, I would feel comfortable reporting it to the ethics hotline/the compliance department. C.9 As a result of the incident… …fraud awareness sessions is adequate. C.18 The company has established its compliance policy by means of a long- term integrated plan. It regularly… …standards of con- duct, I think it would be because they are trying to help the organization achieve its goals and meet its business targets. D.5 If a… …manager or a colleague does something which is not permitted, some- one in the organization will find out about it. E. Personal Data (optional)…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  A Practice Aid for Auditors: Fraud Interviews - An Inquiry Guide

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …practice aid designed to help the audit team to plan and tailor these fraud interviews as required by the international auditing standards. It in- cludes… …all the relevant topics to be covered with suggested questions. It is not meant to be used as a questionnaire, seeking answers to each question in… …monitor operating locations? How does it monitor these locations and what has it found? – Are there locations, business segments, activities or… …fraudulent financial reporting or misappropriation of assets? – Where in your organization would it be the easiest to commit and/or the hardest to detect… …how it believes the internal control structure serves to prevent and detect material misstatements due to fraud? If so, what was reported?… …controls through year-end adjustments or significant unusual transactions? – Does internal audit monitor operating locations? How does it monitor these… …locations and what has it found? – Is internal audit concerned about the integrity (as it may relate to fraudulent financial reporting or misappropriation… …Officer / Chief Ethics Officer – Has the company established an ethics code? If so, how was it introduced? Is it a helpful guidance on ethical… …dilemmas? Does it cover international dimensions? How openly are ethical issues discussed? Is the process of communication effective? – What… …company’s IT internal control? How do you believe the IT internal control structure serves to prevent or detect material misstatements due to fraud? Please…

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• eBook-Kapitel aus dem Buch Revision des externen Rechnungswesens

  Prüfungsfelder

  …Eingangs- rechnung nicht selbständig oder mit Hilfe der IT überprüfen kann, wird die Rechnung vor ihrer endgültigen Freigabe in der Regel der Bedarfstelle zur… …ausreichende Funktionstrennung zwischen Anlage/Pflege von Kreditorenstammdaten und der Durchführung von Buchungen/Zah- lungen gegeben? Das in der IT… …Zahlungseingängen gege- ben? Das in der IT hinterlegte Berechtigungskonzept muss gewährleisten, dass für die Anlage und Pflege von Stammdaten verantwortliche Mit-…

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• eBook-Kapitel aus dem Buch Global Management Challenges for Internal Auditors

  Internal Audit Standards: Everything for Everybody

  Inta Ozolina

  …they should do it. We all know that the Standards are extensive, cover most key areas of internal audit profession and work. Even more – the… …the management and owners? I do not think so. Does it make the compliance for smaller audit teams very hard if not impossible to obtain? Yes, it does… …assessment because the requirements are just unrealistic, the Standards really lose their meaning. I think it is a high time to raise this discussion and…

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