WorksheetsACC 106_Ethics, Fraud & Internal Control
Total questions: 10
Worksheet time: 17mins
Business ethics involves finding the answers to two questions:
How do managers decide on what is right in conducting their business?
Once managers have recognized what is right, how do they achieve it?
is ‘‘the analysis of the nature and social impact of computer technology and the corresponding formulation and justification of policies for the ethical use of such technology.… [This includes] concerns about software as well as hardware and concerns about networks connecting computers as well as computers themselves.’’
(a)
involve fictitious charges to such accounts as miscellaneous expense to offset theft of an asset. Because the expense account is closed to revenue at the end of the period, the period in which it could be detected is short.
Charges to expense accounts
Lapping
Transaction fraud
Four Main Areas of Business Ethics
Equity
Equality
Rights
Exercise of corporate power
Honesty
denotes a false representation of a material fact made by one party to another party with the intent to deceive and induce the other party to justifiably rely on the fact to his or her detriment.
(a)
fraud by nonmanagement employees
(a)
Perpetrated at levels of management above the one to which internal control structure relates
(a)
Three categories of fraud schemes according to the Association of Certified Fraud Examiners:
fraudulent statements
asset misappropriation
corruption
theft
Discuss the fraud triangle
Why should we be concerned about ethics in the business world?
