Answer the following the question on internal control measures and fraud based off reading Chapter 7 in our textbook. Your initial response is due by Thursday.
Write a 175 to 250 word response to the following:
Background: Accounting scandals and fraud, both in the United States and internationally, have re-ignited the debate over the current laws, regulation and accounting principles. The relative merits of GAAP, which takes a “rules-based” approach to accounting, versus IFRS, which takes a “principles-based” approach have been under scrutiny. In the last couple of years, the FASB announced that it intends to introduce more principles-based standards to improve general accounting principles and practices.
Organizations have internal control measures to detect fraud. In additions, organizations are subjected to required reporting of financial information to external entities. With that in mind, answer the following items in your initial discussion response:
- Define fraud and discuss the three factors identified in our textbook that contribute to fraudulent activity.
- What are some strategies in health care to prevent financial fraud? Provide some details.
- Identify an example of an organization that has committed fraud. What happened and what were the legal ramifications?