Security Fraud and Manipulations Using Accounting Policies and Rules Dissertation

Security Fraud and Manipulations Using Accounting Policies and Rules - Dissertation Example More importantly, a wide variety of security fraud and malpractice of accounting policies are employed in the preparation of the financial report accounting of Enron, Madoff scheme, and WorldCom Corporation that lead into their bankruptcy. Nonetheless, the Securities Exchange Commission (SEC) seeks to deter fraud in financial statements of companies through laws, internal control systems and regulations. More significantly, the commission continuously seeks to detect misstatements, failure of disclosure of accurate financial information in records, documentation, accounting policies and procedures in changes of equity and explanatory notes accompanying every financial period statement of companies. In addition, this paper will look at the adherence to the International Financial Reporting Standards (IFRS) as stipulated by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) remains committed towards global standards. Finally, the pap er looks at various fraudulent situations that could be avoided through adherence to stipulated accounting policies and procedures by management, accountants and auditors as they put shareholders interest first. ACKNOWLEDGEMENTS I would like to express sincere gratitude to my dissertation supervisor, xxx, for his invaluable support. As an area of accounting and auditing practise, I hope you find this paper insightful in the minimization of security fraud and manipulation practices. Tables of Contents 1. Introduction 6 2. Literature Review 7 3. Research Methodology 16 4. Discussion of Findings 18 4.1.0 Nature and treatment Of Security Fraud &manipulation through fraudulent use Of accounting policies and rules 18 4.2.0 Security Fraud and Manipulation in Madoff scheme, Enron & Worldcom Corporation 23 4.3.0 Security Fraud and Manipulation Problems in Madoff Scheme, Enron and Worldcom Corporation 27 4.4.0 Comprehensive Analysis of Parties involved in the carrying out of Security Fraud an d Manipulation 33 4.5.0 Regulation of Security Fraud and Manipulation in Madoff scheme, Enron and WorldCom Corporation 39 5. Conclusions 43 6. Appendix 45 6. References 47 CHAPTER 1.0 INTRODUCTION More than often, fraudulent financial information given in companies financial statement typically takes the form of material misstatements done intentionally by making either the annually or quarterly financial statements fluctuated. In most cases, auditors acknowledge that financial statements are intentionally misstated such that the information provided remains not only misleading, but also inaccurate, such that the presentation of financial reports does not follow the generally accepted accounting practises (GAAP), international auditing standards (IAS) and international financial reporting standards (IFRS). More so, such security fraud and manipulation through the use of fraudulent accounting policies and rules in international corporations like Madoff scheme, WorldCom and Enron led to a huge loss as a result of fraud upon