Accounting fraud: Difference between revisions
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*IFAC (2016). ''Handbook of International Quality Control, Audit, Review, Other Assurance Engagements, and Related Services Pronouncements''. Edition 2013 (Vol. I). New York. USA: International Federation of Accountants. | *IFAC (2016). ''Handbook of International Quality Control, Audit, Review, Other Assurance Engagements, and Related Services Pronouncements''. Edition 2013 (Vol. I). New York. USA: International Federation of Accountants. | ||
*AICPA (2002). ''Statement on Auditing Standards (SAS)'' No. 99: Consideration of Fraud in a Financial Statement Audit. New York: AICPA. | *AICPA (2002). ''Statement on Auditing Standards (SAS)'' No. 99: Consideration of Fraud in a Financial Statement Audit. New York: AICPA. | ||
*''[https://www.pwc.com/ke/en/assets/pdf/global-gecs-2014-report.pdf Economic Crime: A Threat to Business Globally (2014)]''; PwC: London, UK; | *''[https://www.pwc.com/ke/en/assets/pdf/global-gecs-2014-report.pdf Economic Crime: A Threat to Business Globally (2014)]''; PwC: London, UK; p. 1–57. | ||
Revision as of 21:28, 14 November 2022
Accounting fraud
Accounting fraud is an intentional act involving the use of deception, which occurs for the purpose of distorting financial information and gaining an unfair or illegal advantage and which is carried out by one or more persons in management, those responsible for the governance of the entity, employees or third parties[1].
On the other hand, American Institute of Certified Public Accountants tells us that tax fraud can be carried out in the following ways [2]:
- Tampering with, falsifying or altering the accounting records or supporting documents from which the financial statements are prepared.
- Intentional misstatement or omission in the financial statements.
- Intentional misapplication of accounting principles related to the amounts, classification, presentation, presentation, disclosure, presentation and disclosure of financial statements. amounts, classification, form of presentation, or disclosure.
Accounting fraud is part of a variety of crimes, which in their totality are part of what are called economic crimes. Among them are corruption, fraud, cybercrime... Economic crimes are a huge and constantly growing problem that society is facing on a daily basis, and they know how to adapt to the times in which we live, making it even more complicated to control them. The globalised world in which we live means that we are constantly exposed to being victims of economic crime. From governments, to multinationals, to small companies and not forgetting individuals, are at risk of suffering economic crime on a daily basis. A clear example of the above is in the words of Steven L. Skalak, a Partner in Advisory Services at Forensic Services in New York, and in his research, he states that “more than half of global chief executives, polled in our just-released 2014 Global CEO Survey, told us they are concerned or extremely concerned about bribery and corruption” [3]
Footnotes
References
- IFAC (2016). Handbook of International Quality Control, Audit, Review, Other Assurance Engagements, and Related Services Pronouncements. Edition 2013 (Vol. I). New York. USA: International Federation of Accountants.
- AICPA (2002). Statement on Auditing Standards (SAS) No. 99: Consideration of Fraud in a Financial Statement Audit. New York: AICPA.
- Economic Crime: A Threat to Business Globally (2014); PwC: London, UK; p. 1–57.
