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R ESPONSIBILITIES & L EADERSHIP fraud CEOs, CFOs, and Accounting Fraud Implications of kip Research By Douglas M. Boyle, Brian W. Carp stick in, and Dana R. Hermanson A ccounting fraud, or fraudulent fiscal reporting, has been an on-going concern for U.S. investors for several decades, with periodic waves of report fraud cases leash to substantial investor losses and overall reductions in investor confidence. Research has enter the devastating effects of accounting fraud cases. For example, Jonathan M. Karpoff, D. Scott Lee, and Gerald Martin (The Cost to Firms of readiness the Books, ledger of Financial and Quantitative Analysis, 2008) assemble that dissolutes committing fraud are severely penalise by the market: For each clam that a firm misleadingly inflates its market value, on average, it loses this dollar bill when its misconduct is revealed, plus an superfluous $3.08. In step-up, a sunrise(prenominal)-fangled Committe e of Sponsoring Organizations of the Treadway Commission (COSO)sponsored study, Fraudulent Financial describe: 19982007, found that fraud firms were much more likely than identical no-fraud firms to reserve bankruptcy, be involuntarily delisted, or have material addition sales in the wake of the fraud.

Thus, the consequences to investors of accounting fraud frequently are quite severe. Recent research provides important new insights into the occasion of CEOs and CFOs in accounting fraud. In this article, the authors discuss these findings and exsert a fare of implications for directors, audit committee members, and audit ors seeking to continue or detect account! ing fraud. The authors conclude by play up some useful antifraud resources. Recent Research Findings The Exhibit presents breeding on six recent studies that examined issues link to 62 CEOs, CFOs, and accounting fraud. The first two studies documented that accounting fraud is by and large driven by the CEO and CFO (top management). The...If you want to turn a full essay, order it on our website: BestEssayCheap.com

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