Documents

Accounting a Helpful Way to Fight Against Corruption

Description
The way accounting can help to fight against corruption
Categories
Published
of 9
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
Share
Transcript
  Accounting a helpful way to fight against corruption As the complexity and scope of commerce has expanded throughout the world, the need to track money and financial information has grown. But in such case corruption is the disease that gradually demolish the ethics of an organization as well as the people of its territory. Fraud includes all the multifarious means human ingenuity can devise that are resorted to by one individual to get an advantage over another by false suggestions or suppression of the truth. It includes surprises, tricks, cunning or dissembling, and any unfair way by which another is cheated. According to the FBI !hite ollar #raining $anual,% white&collar crime encompasses those criminal acts characterized by fraud, concealment, or a violation of trust that are not dependent upon actual or threatened physical force or violence. 'ow we can define in that an organization is running smoothly with out being affected by corruption( It is hard to find out from an organization but possible to )ustify whether its activities are being legal or illegal. Accounting is the weapon that can identify any corruption in any field of an organization. It is a service activity which function is to provide *uantitative information primarily financial in nature, about economic activities that is intended to be useful in making economic decisions, in making choices among alternative courses of action. Accounting an aid to manage corruption: Accounting helps the management in many cases to find out any mistakes or unethical activities which can cause huge problem in an organization. $anagement can easily find out kind of mistake as+   Accounting follows ouble entry system that analysis debit and credit and check transactions calculation of ledger to modify whether it is correct or not.  -eople can find their daily transactions report accounting. It shows their daily purchases and sells, income and expenditure, liabilities or debt to resolve. o with such report in hand it is hard for any one to take any advantage from any transactions.   If any kind of forgery, deceit, and trick occurs accounting can extirpated and take obstruction measures as remedy of such situation. In this case eligible knowledge of accounting  provides great support.  ifferent expenditure of financial institution and /overnment is being reported by an accountant. Although he0 she can initially do mistake in order to fulfill his or her own desire. #hey can create different false information about different cost and wastage many income of an organization or a government by poring profit in to their pocket. #his kind of situation can be stopped if+ 1 &irect and indirect cost is being analyzed by the auditor.&Fixed and variable cost is being analyzed.& ontrollable and uncontrollable cost is being analyzed.&Auditor reports to the higher authority for any corruption.& reate awareness so that such situation can be stopped.  !hen there is a lack of evidence there is chance of mistrust and often the probability of having corruption. Accounting information system provides information about different evidence through we can identify any kind of doubt. It provides necessary information of an organization through which we can find out right the culprit.   As accounting information system is based on such rules and regulation2 -articipative law, company law, ecurity and exchange law, income tax , Business and industry law of an organization so any depraved can be captured easily.  In an organization if there is no accountability or value people will do unethical activities to maximize their own benefit. Accounting creates accountability that forces them to clarify actual situation and makes them careful in case of expanses of money and making any decision.  ebt e*uity ratio provides information about debt and balance sheet shows the total liabilities and total asset of an organization. !hether it3s a private or public organization we can easily find out the how much asset or liabilities there should be and lessen the opportunity of doing any unethical act.  Accounting is the tool of making values and accountability that helps people tom moderate their activities and also raises responsibility that can eradicate the effects of corruption.Although we have talked about accounting the entry&level )ob recipients should need to know how to determine whether an individual has failed to report income to the appropriate taxing authorities. #hey should understand how assets can be hidden, and how to locate hidden assets. A dynamic tool for combating corruption +#here has been a corresponding increase in illegal financial activity, according to separate surveys by the 4..epartment of 5ustice, -ricewaterhouse& oopers, and the Association of ertified Fraud 6xaminers 7A F68. Ironically, illegal businesses and perpetrators of financial crimes also need to keep track of their cash flow and manage their operational performance to generate profits, fund activities, and avoid detection, prosecution, and seizure of their assets. In fact these have prompted businesses houses to hire forensic accountants to discover through investigation, various types of wrongdoing, on one hand and prevent such occurrence, on the  other. #he plague of fraud has accelerated the need for a specialist trained specifically in investigation and detection. Forensic accounting  has established itself as dynamic and strategic tool in combating corruption, crime and frauds through investigations and resolving allegations of frauds and embezzlements. It is seen to be engaged in evidence gathering, document findings, provide internal control assessment, internal risk assessments, design, implement and monitor fraud  policies, loss recovery, due diligence and compliance studies, lost profit analysis, damage calculations, shareholder disputes, business damages, valuation, settlement negotiations, mediation, search for hidden assets, business or pension plan, etc. Forensic accounting includes+  #he use of accounting, auditing, and investigative skills to assist in legal matters.  It consists of two ma)or components+ litigation services that recognize the role of an accountant as an expert consultant, and investigative services that use a forensic accountant3s skills and may re*uire possible courtroom testimony.  eveloped by the AI -A3s Forensic and 9itigation ervices ommittee, forensic accounting may involve the application of special skills in accounting, auditing, finance, *uantitative methods, the law, and research. It also re*uires investigative skills to collect, analyze, and evaluate financial evidence, as well as the ability to interpret and communicate findings.  I# encompasses litigation support, investigation, and dispute resolution and, therefore, is the intersection between accounting, investigation, and the law. Fraud examination is a methodology for resolving fraud allegations from inception to disposition, including obtaining evidence, interviewing, writing reports, and testifying. #he A F63s manual states that fraud examiners also assist in fraud prevention, deterrence, detection, investigation, and remediation.  9ike most forensic sciences, fraud and forensic accounting may include using financial information to piece together or reconstruct past events in instances where that reconstruction is likely to be used in some )udicial proceeding 7e.g., criminal or civil court, deposition, mediation,arbitration, or settlement negotiation8.
Search
Tags
Related Search
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks