Financial Statement Fraud and Revenue Recognition Fraud Essay

Financial Statement Fraud and Revenue Recognition Fraud - Essay Example We can define financial fraud as an intentional act to deceive people through manipulated financial statements for personal gain (â€Å"Bank Negara Malaysia† 1). Financial fraud is crime under civil law and involves complex financial transactions conducted by white-collar business professionals with a criminal intention (â€Å"Bank Negara Malaysia† 1). Nevertheless, financial fraud derives numerous loses on the global economy and on the reference corporations where many companies collapse due to financial frauds. Additionally, financial fraud demeans investor confidence in financial reporting and lowers the efficiency of corporate governance. A financial statement fraud refers to an intentional misrepresentation of financial information that the corporation presents to the public. Notably, improper revenue recognition, failure to record incurred liabilities, and failure to disclose contingent liabilities are the most dominant financial statement frauds (Bradford 1). Cas es of financial statement fraud are on the increase and the economic crisis catalyzes the problems. Nevertheless, most of the financial statement frauds relate to revenues recognition while accounting errors take the other proportion. As such, internal and external auditors should understand the dynamics of revenue recognition fraud and institute proper measures to curb financial fraud. Ideally, financial statement fraud and revenue recognition fraud relate to financial fraud. Definition Financial statement fraud refers to an intentional misrepresentation, misstatement, or omission of financial statement data for the purpose of deceiving the public and creating a false impression of an organization's financial strength (Colby 1). Notably, financial statement fraud is an enormous challenge in the global market as corporations seek to stalk investors to continue investing in the corporation. Moreover, corporations engage in financial statement fraud for purposes of securing bank appro vals for financing and satisfy the shareholder’s interests (Bradford 1). Ideally, the top management plays the major role in a financial statement fraud since they supervise and authorize the preparation of financial statements. There are different forms of financial statement fraud in the global market where the initiators will use distinct systems of manipulation to maintain the appearance of the financial statement fraud. The most common types of financial statement fraud include manipulation of liabilities, improper recognition of revenues and expenses, improper asset valuation, improper disclosures (Pinkasovitch 1) on financial statements, and fictitious sales (Colby 2). However, manipulation of revenue is the most dominant form of financial statement fraud. This includes the posting of sales prior to payment while the manipulation of expenses includes the capitalization of normal operating expenses (Bradford 1). On the other hand, the manipulation of liabilities relates to failure to record regular expenses while improper disclosures relates to misrepresentation of the company’s financial status (Bradford 1). An overstatement of current assets on financial statements leads to improper assets and defines financial statement fraud (Colby 2).  

Comparative Analysis of The Cut-glass bowl and Benediction by F.Scott Essay

Comparative Analysis of The Cut-glass bowl and Benediction by F.Scott Fitzgerald - Essay Example Cut-glass Bowl is a story about Evelyn Piper, a housewife in New York society who a superficial and pretty woman. Evelyn had been cheating on her husband of seven years for six months, and the affair was the talk of the town until the husband found out. The bowl in question is the center of this story because it disintegrates with Evelyn’s life to bring about several tragedies, and eventually finishes her. In the two stories, Fitzgerald uses the major characters to explore the issues of morality vs. secular, reality vs. illusion and the wistful sadness of romance, which is the focus of this comparison. The Benediction story presents a conflict between morality and secular. This is noticed when Lois asks his brother and friends at the seminary why they joined the brotherhood while still young. She believes that they should explore the other side of the world (secular) before they join the seminary studies and commit to celibacy. She questions whether the decision to celibate be fore experiencing the pleasures of the world is good or not. This presents indecision that some people who strongly wish to join seminary may have. For instance, some young Catholics are held back by the desire to got out and experience the world before committing to celibacy. As a result, the decision to hold back on joining seminary at a young age might bar some people from entering the studies and thus, living a secular life. This might also raise the question of what the society thinks about celibacy, is it morally good?. Nevertheless, Keith and his friends are satisfied with their lives at the seminary, and from them we learn that celibacy at a young age is not a bad idea. Similarly, the issue of morality in the society presents itself through the actions of Evelyn in Cut-glass Bowl. Evelyn is unfaithful to her husband as she has been seeing Gedney for a period of six months until her husband found out, and that is when she decided to end. This portrays what happens in this New York society. Housewives become too lonely until they decide to seek affection from somewhere else since the husbands are too busy to give them attention. Though this is immoral behavior, they believe that it is the right way to relieve their loneliness and frustrations experienced in marriage. Evelyn is also described as a heartbreaker defining her character before she got married. What is more fascinating in the story is that divorce is not an option for Evelyn and her husband because it is considered immoral in the society. Therefore, this implies that having an affair is not considered wrong, but divorce is, which is supported by Evelyn’s husband who acknowledges that the affair was just a mistake. Reality vs. illusion is also a concept widely explored by Fitzgerald in the two stories. For instance, in Benediction, Lois cannot separate what is reality and what is an illusion. This is revealed on her visit to her brother’s school where he is learning to become a Je suit priest. First, she wants to end her relationship with Harold, but she does not have a reason to for this. She gets the illusion that things will never work between them. She is confused about the true meaning or religion and Catholicism, in which she shows indifference towards it. However, something magical happens to her during the Benediction service whereby she experiences genuine righteousness (Brye 38). Her conversion reveals the underlying reality or ultimate truth that is