AIG Scandal Analysis

Discipline: Other

Type of Paper: Creative writing

Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 7 Words: 2128

Question

QUESTION

Task

Recently, there have been many corporate collapses and scandals that involved the intentional misuse of accounting standards and principles. Auditors played a major role in these collapses and scandals. Examples of these companies involved areEnron, WorldCom, Parmalat, Northern Rock and Lehman Brothers. 

Required:

Choose a company that recently collapsed and answer the following questions (the group leader must send me the name of the chosen company by 5:00pm Sunday 16th August 2020): 

1.Differentiate between employee fraud and management fraud. Which one is used by your chosen company? How?  

2.Explain how the management team in your chosen company deceived and/or worked in collusion with auditors to materially misstate financial statements. 

3.Give examples of steps that auditors can take to overcome these types of situations that involve employee fraud and/or management fraud. 

4.Identify the warning signs of fraud that were ignored by the auditors in your chosen company.

5.Following the collapse of your chosen company, what are the actions taken by governments and accounting profession to prevent future misuses of accounting standards and principles to deceive stakeholders?  

Instructions: 

-You can use at least three relevant references from the Library databases to support your case analysis. The library link is below:http://www.auk.edu.kw/academics/library/resources

-The PowerPoint presentation must be submitted by the group leader to ----by 5:00pm Sunday30th August 2020.

-A written report on the case analyzed (1,500 – 2,000 words) must be submitted by the group leader to ------- by 5:00pm Sunday 30th August 2020. The reportshould be structured as: Introduction; Discussion/Analysis; Conclusion. 

-The case analysis and group presentation is worth 30% of the overall mark. This mark will be allocated 50% to the report & 50% to the group presentation. All group members will obtain the average mark.However, any group member who exceeds the average mark will get his/ her actual mark.