The following presentation takes you through the Corporate Governance norms as prescribed by SEBI with a bit of detail into some major Corporate governance scams in INDIA
Regulations are integral to the banking industry, and the extent to which the bank complies with such regulations not just maintains its bottom line in terms of avoiding hefty fines, but also has a big bearing on credibility and integrity. So how do banks comply with all that is required, and save themselves from the ill-effects of non-compliance?
The following presentation takes you through the Corporate Governance norms as prescribed by SEBI with a bit of detail into some major Corporate governance scams in INDIA
Regulations are integral to the banking industry, and the extent to which the bank complies with such regulations not just maintains its bottom line in terms of avoiding hefty fines, but also has a big bearing on credibility and integrity. So how do banks comply with all that is required, and save themselves from the ill-effects of non-compliance?
Most people forming a company undervalue the importance of a company secretary.
Find out here about the role and tasks that are carried out by a company secretary.
EFFECTS OF ETHICS ON FRAUD 1
EFFECTS OF ETHICS ON FRAUD 2
Ethical Analysis
Effects of ethical behaviors in an economy are far reaching to individuals, firms and the economy at large. Accountants play a vital role in ensuring the reliability and trustworthiness of accounting data and affect the moral culture of business and society. In order to achieve this, accountants are advised to observe the American Institute of Certified Public Accountants (AICPA), Professional Code of Conduct. Undoubtedly, private and public organizations employ professional accountants who are mandated to provide financial information regarding its business cycles. In some situations, an accountant may feel compelled or pressured to provide false financial information or alter financial results. In these cases, this creates a threat to the moral and ethical character of an accountant and is known as an ethical dilemma. Ethical dilemmas constitute a circumstance in which an individual faces a situation or a decision that test his/her moral system or ethical code. In these circumstances, an individual must choose whether to live out consistent moral attitudes or act contrary to what one personally believes or what has been established by ethical code. Ethical accounting codes require accountants to have a high level of integrity, to maintain confidentiality and behave according to a high degree of professional standards.
This dissertation will discuss how ethical accounting standards impact accounting fraud. Accounting fraud involves the intentional manipulation of financial information, which misleads shareholders, creditors, investors and the general public. These actions are premeditated attempts to deceive and attract investors by intentionally altering financial statements. Often, this is accomplished by overstating revenue and assets and under reporting expenses and liabilities. The perpetrators of accounting fraud are employees, managers, accountants and top executives. Thus, to reduce business fraud, ethical codes have been instituted within corporations, industries and state and national accounting boards. For certified public accountants, the AICPA Code of Professional Conduct has been adopted to tackle the ethics of accounting.
Professional Conduct Diminishes Fraud
An accountant’s professional conduct is a key quality used to minimize fraud. As mentioned, state accountancy boards and the AICPA are mandated to formulate and enforce professional standards for all accounting members who are responsible for providing financial services. The AICPA Code of Professional Conduct was recodified in June 2014, and became fully effective in December 2015. This code of conduct requires all accountants to act with integrity, due care, objectivity, competency and ensure confidentiality for their client. In ad.
Most people forming a company undervalue the importance of a company secretary.
Find out here about the role and tasks that are carried out by a company secretary.
EFFECTS OF ETHICS ON FRAUD 1
EFFECTS OF ETHICS ON FRAUD 2
Ethical Analysis
Effects of ethical behaviors in an economy are far reaching to individuals, firms and the economy at large. Accountants play a vital role in ensuring the reliability and trustworthiness of accounting data and affect the moral culture of business and society. In order to achieve this, accountants are advised to observe the American Institute of Certified Public Accountants (AICPA), Professional Code of Conduct. Undoubtedly, private and public organizations employ professional accountants who are mandated to provide financial information regarding its business cycles. In some situations, an accountant may feel compelled or pressured to provide false financial information or alter financial results. In these cases, this creates a threat to the moral and ethical character of an accountant and is known as an ethical dilemma. Ethical dilemmas constitute a circumstance in which an individual faces a situation or a decision that test his/her moral system or ethical code. In these circumstances, an individual must choose whether to live out consistent moral attitudes or act contrary to what one personally believes or what has been established by ethical code. Ethical accounting codes require accountants to have a high level of integrity, to maintain confidentiality and behave according to a high degree of professional standards.
This dissertation will discuss how ethical accounting standards impact accounting fraud. Accounting fraud involves the intentional manipulation of financial information, which misleads shareholders, creditors, investors and the general public. These actions are premeditated attempts to deceive and attract investors by intentionally altering financial statements. Often, this is accomplished by overstating revenue and assets and under reporting expenses and liabilities. The perpetrators of accounting fraud are employees, managers, accountants and top executives. Thus, to reduce business fraud, ethical codes have been instituted within corporations, industries and state and national accounting boards. For certified public accountants, the AICPA Code of Professional Conduct has been adopted to tackle the ethics of accounting.
Professional Conduct Diminishes Fraud
An accountant’s professional conduct is a key quality used to minimize fraud. As mentioned, state accountancy boards and the AICPA are mandated to formulate and enforce professional standards for all accounting members who are responsible for providing financial services. The AICPA Code of Professional Conduct was recodified in June 2014, and became fully effective in December 2015. This code of conduct requires all accountants to act with integrity, due care, objectivity, competency and ensure confidentiality for their client. In ad.
It's an effort towards making financial terms easy for non finance background people , the ppt explains about the ehtical issues in finance and also about various scams . please share your thoughts with me on the same .
Financial Ethics
Learning Objectives
After completing this chapter, you should be able to:
• Describe the common dilemmas that accountants and financial officers face.
• Consider how commercial conflicts of interest may arise in preparing accounts and financial reports, and
examine whether such conflicts are best dealt with by the government or the marketplace.
• Understand some of the ways companies cheat on financial reports.
• Assess the advantages and disadvantages of insider dealing.
• Explain the problem of rogue trading.
• Describe the various regulations concerning financial practice.
Associated Press/Peter Morgan
7
fie66722_07_c07_165-186.indd 165 3/2/12 9:43 AM
CHAPTER 7Section 7.1 Introduction
Contents
7.1 Introduction
7.2 The Ethics of Accounting
Impartiality
Berle and Means Versus Henry Manne: Two Views of Corporate Corruption
Cooking the Books
Transfer Pricing and Costing
The Ethics of Deception
U.S. Accounting and Reporting History
7.3 Commercial Conflicts of Interest
The Buyer-Beware Principle
Complex Products
Should Customers Do Their Homework?
7.4 Insider Trading
Insider Trading Defined
Examples of Insider Trading
The Free Market Perspective
An Issue of Fairness
Legal Theory of Misappropriation
7.5 Rogue Trading
Example of Rogue Trading: Nick Leeson
What Can Be Done?
7.6 Conclusion
7.1 Introduction
Recently, a steady stream of major financial scandals have rocked the business world. At one
point, Enron (in the United States) was one of the world’s largest utility companies. Within a year,
a massive accounting fraud was uncovered, leading to its bankruptcy. The U.S. communications
company WorldCom was found to have been covering a $3.8 billion fraud, inflating its asset values
to make it look financially healthier than it really was. More recently, the American businessman
Bernard Madoff defrauded some 4,800 clients—including many charities—of $65 billion.
Accountants are trained professionals who are accredited and licensed to provide professional
services concerning the accounts, audits, and reporting of corporations’ finances. Many are mem-
bers of professional organizations, such as the American Institute of Certified Public Accountants,
that have ethical principles or codes of professional conduct that members pledge to adhere
to. Like medical professionals, they are expected to live up to a professional reputation that has
developed over many decades. But innovation in the business world, as well as globalization, has
166
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CHAPTER 7Section 7.2 The Ethics of Accounting
put increasing pressures on accountants, auditors, and CEOs that can affect their professional
judgment and lead to accounting fraud. Such fraud is costly—in fact, it is estimated to cost the U.S.
economy over $300 billion annually.
In the wake of notable fraud cases such as the ones mentioned earlier, the financial profes-
sion has been under int ...
Chapter Introduction
Ditty_about_summer/ Shutterstock.com
Learning Objectives
The five Learning Objectives below are designed to help improve your understanding. After reading this chapter, you should be able to answer the following questions:
1. What are two different views of the role of business in society?
2. How do duty-based ethical standards differ from outcome-based ethical standards?
3. What is short-term profit maximization, and why does it lead to ethical problems?
4. What are the four steps in the IDDR approach to ethical decision making?
5. What ethical issues might arise in the context of global business transactions?
“New occasions teach new duties.”
James Russell Lowell 1819–1891 (American editor, poet, and diplomat)
One of the most complex issues that businesspersons and corporations face is ethics. Ethics is not as clearly defined as the law, and yet it can substantially impact a firm’s finances and reputation, especially when the firm is involved in a well-publicized scandal. Some scandals arise from conduct that is legal but ethically questionable. At other times, the conduct is both illegal and unethical. Business law and legal environment students must be able to think critically about both legal and ethical issues. As noted in the chapter-opening quotation, “New occasions teach new duties.”
Suppose that Finn Clayborn dropped out of Harvard University to start a company in Silicon Valley that developed and sold finger-prick blood-test kits. Clayborn raised millions from investors by claiming that his new technology would revolutionize blood testing by providing a full range of laboratory tests from a few drops of blood. The kits were marketed as a better alternative to traditional, more expensive lab tests ordered by physicians. They were sold at drugstores for a few dollars each and touted as a way for consumers to test their blood type and monitor their cholesterol, iron, and many other conditions. Within six years, Clayborn and his company were making millions. But complaints started rolling in that the test kits didn’t work and the results were not accurate (because more blood was needed). Numerous consumers, drugstores, and government agencies sued the company for fraudulent and misleading marketing practices. Clayborn’s profitable start-up now faces an uncertain future.
The goal of business ethics is not to stifle innovation. There is nothing unethical about a company selling an idea or technology that is still being developed. In fact, that’s exactly what many successful start-ups do—take a promising idea and develop it into a reality. But businesspersons also need to consider what will happen if new technologies do not work. Do they go ahead with production and sales? What are the ethical problems with putting a product on the market that does not function as advertised? To be sure, there is not always one clear answer to an ethical question. What is clear is that rushing to production and not thinking through ...
Homework guidePlease read the following note on fraud to broaden.docxadampcarr67227
Homework guide
Please read the following note on fraud to broaden your understanding of the topic and to guide your responses. [More guide]
Fraud
Fraud is a deception deliberately practiced in order to secure unfair or unlawful gain (adjectival form fraudulent; to defraud is the verb). As a legal construct, fraud is both a civil wrong (i.e., a fraud victim may sue the fraud perpetrator to avoid the fraud and/or recover monetary compensation) and a criminal wrong (i.e., a fraud perpetrator may be prosecuted and imprisoned by governmental authorities). Defrauding people or organizations of money or valuables is the usual purpose of fraud, but it sometimes instead involves obtaining benefits without actually depriving anyone of money or valuables, such as obtaining a driver’s license by way of false statements made in an application for the same (Nigrini 2011).
Financial Statement Fraud
Financial statement fraud is one of the biggest challenges in the modern business world. This is when corporations engage in certain practices designed to hide or maneuver the accounts of a corporation to help it continue to remain attractive to investors. To counter financial statement frauds, especially in the aftermath of the Enron scandal in 2001-2002, the US Congress introduced the Sarbanes Oxley Act, the compliance with which is mandatory for US corporations. A financial statement fraud may be actionable under both the False Claims Act and the Dodd Frank Act as well. You may have suffered a financial statement fraud or may have original information about a financial statement fraud, which means that you may be able to bring either a financial statement fraud lawsuit or a whistleblower lawsuit depending on the facts peculiar to your case.
The most common occurrence of financial statement fraud is when losses are underplayed or deliberately hidden by corporations. Financial statement fraud comprises deliberate misstatements or omissions of amounts or disclosures of financial statements to deceive financial statement users, particularly investors and creditors, outright falsification, alteration, or manipulation of material financial records, supporting documents, or business transactions, material intentional omissions or misrepresentations of events, transactions, accounts, or other significant information from which financial statements are prepared, deliberate misapplication of accounting principles, policies, and procedures used to measure, recognize, report, and disclose economic events and business transactions and also intentional omissions of disclosures or presentation of inadequate disclosures regarding accounting principles and policies and related financial amounts.
There are massive issues that emanate from financial statement fraud. Financial statement fraud undermines the reliability, quality, transparency, and integrity of the financial reporting process and jeopardizes the integrity and objectivity of the auditing profession, especially aud.
Understanding There are many factors All these forces come under one word cal...Yashwanth Rm
Understanding the Business :
To understand any business the critical step is to explore all the factors related to business and properly judging its impact on the business. There are many factors and forces which have considerable impact on any business. All these forces come under one word called environment.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
2. Ethics is based on well founded standards
of rights and wrong that prescribe what
humans ought to do , usually in terms of
rights , obligations , benefits to society ,
fairness , or specific virtues .
3. Ethics in general is concerned with
human behavior that is acceptable or
“right” and that is not acceptable or
“wrong” based on conventional
morality. General ethical norms
encompass truthfulness, honesty,
integrity, respect for others, fairness,
and justice. They relate to all aspects of
life, including business and finance.
4. Accounting is a business field in which accuracy and
interpretation are both very important . Small
discrepancies can displace large sums of money ,
especially in large companies. Ethics is the practice
of behavior that does not allow for intentionally
inaccurate or false accounting practices. This
pertains not only to following the law , but also to
interpreting financial data or clearly and honestly
as possible in all situations.
5. In Finance
Compliance with applicable law, rules and regulation
Full, fair, accurate, timely and understandable disclosure in reports and
documents that the company files with, or submits to , governmental agencies.
Achieving responsible use of and control over all assets of the company .
In accounting
By joining their professional organizations , people who work in the field of
accounting agree to uphold the high ethical standards of their profession
These codes are positively stated and provide general guidelines that professional
accountant should strive to follow
These ethical code call for their members to maintain a level of self – discipline
that goes beyond the requirements of laws and regulations
6. Fraud
A fraud is a dishonest act by an employee that result in
personal benefit to the employee at a cost to the employer
example = a bookkeeper in small company diverted $ 750,000
of bill payments to a personal bank account over a three year
period .
Misleading financial statement
Before investing money investor want to known the
company’s financial position and performance . They want to
see the balance sheet and income statement. So financial
companies sometimes intentionally prepare false financial
statement to improve their chances of getting invested.
Insider Trading
A trading of corporation’s stock or other securities by
individual with access to non-public information about the
company the company it is unfair would destroy the security
markets by destroying investor confidence
7. Holding up bills of vendors on silly reasons
and ultimately buying from others to avoid
payments to earlier vendors.
Delay in paying wages, interest to financiers,
incentives, bonus to employees
Cheating employees of their dues towards
medical expenses, leave travel assistance,
children education fees etc…
8. A two wheeler company employs graduate
engineer trainees every year. It imports
training in all department for one year. At
the end of the year a written test and an
interviews is taken for placement of
engineers in different departments.
If a trainee engineer leaves a company for
any reason within the first year he will have
to refund company training expense of
Rs.50,000
Question
Is the system ethical ?
9. To give an accurate To the members about
the state of affair of a company
To meet the objectives of company act,1956
and the also article of association
To be reasonably skillful and careful in
identifying the true nature of accounts
10. Deception -- act of misrepresenting relevant
information
Churning -- excessive and inappropriate trading
for clients account and broker who has control
over the account with intent to generate
commissions rather than to benefit client
unsuitability
unfairness in market
11. Harshad mehta was an Indian stock broker .
On April 23, 1992, journalist Sucheta Dalal
exposed Mehta's illegal methods in a column
in The Times of India. Mehta was dipping
illegally into the banking system to finance
his buying.
12. Satyam computer services was a corporate
scandal that occurred in India in 2009 where
Chairman Ramalinga Raju confessed that the
company's accounts had been falsified. CID
told in court that the actual number of
employees is only 40,000 and not 53,000 as
reported earlier and that Mr. Raju had been
withdrawing 20 crore (US$4 million) every
month for paying these13,000 non-existent
employees.
13.
14. YEAR-- 2011-2018
SCAMMERS– NIRAV MODI, AMI MODI, NEESHAL MODI,
MEHUL C CHOKSI
Punjab National Bank Fraud Case relates to alleged
fraudulent Letter of Undertaking worth ₹11,600
crore The fraudulent transactions are allegedly
linked to designer and jeweler Nirav Modi of
Firestar Diamonds, against whom a complaint
has been filed with the Central Bureau of
Investigation.
15. Integrity
Each member has a responsibility to :
1. mitigate actual conflict of interest.
2. Abstain from engaging in or supporting any activity that might
discredit the profession.
Credibility
Each member has a responsibility to
1. Communicate information fairly and objectively
2. Disclose of relevant information that could be reasonably be
expected to influence and intended user understanding of the
reports, analysis, or recommendation.
17. EMPHASIS ON
SHORT TERM
RESULTS
• Manipulating accounting entries to show better
result (window dressing) to raise further capital
from the market.
ACCOUNTING
RULES
• In the era of globalization and massive flow of
capital accounting rule changing faster than ever
before. The rules become Complex. And complexity
or difficulties become reason for unethical behavior
IGNORING SMALL
UNETHICAL ISSUES
• Companies need to develop an environment where
small ethical lapses are taken seriously so that they
do not recur in the future
19. When faced with ethical issues , accountants should follow their
organization’s established policies on the resolution of such conflict if
these policies do not resolve the ethical conflict, accountant should
consider the following course of action :
Discuss the issue with his immediate supervisor expect when it
appear that the supervisor is involved . In that case , he should present
the issue to the next level
Clarify relevant ethical issue by initiating a confidential discussion
with an impartial advisor to obtain a better understanding of possible
course of action.