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An ethical dilemma is not a matter of “right” versus “wrong,” but rather it is a situation of conflicting values. A common ethical dilemma is that of honesty versus loyalty—is it better to tell the truth, or remain loyal to the company? In the Japanese culture, truth is

An ethical dilemma is not a matter of “right” versus “wrong,” but rather it is a situation of conflicting values. A common ethical dilemma is that of honesty versus loyalty—is it better to tell the truth, or remain loyal to the company? In the Japanese culture, truth is circumstantial and can vary with different situations. In a way, the Japanese idea of honesty reflects how highly they value loyalty. This overlap of values results in the lack of an ethical dilemma for the Japanese, which creates a new risk for fraud. Without this struggle, a Japanese employee does not have strong justification against committing fraud if it aligns with his values of honesty and loyalty.
This paper looks at the Japanese values relating to honesty and loyalty to show how much these ideas overlap. The lack of a conflict of values creates a risk for fraud, which will be shown through an analysis of the scandals of two Japanese companies, Toshiba and Olympus. These scandals shine light on the complexity of the ethical dilemma for the Japanese employees; since their sense of circumstantial honesty encourages them to lie if it maintains the harmony of the group, there is little stopping them from committing the fraud that their superiors asked them to commit.
In a global economy, understanding the ways that values impact business and decisions is important for both interacting with others and anticipating potential conflicts, including those that may result in or indicate potential red flags for fraud.
ContributorsTabar, Kelly Ann (Author) / Samuelson, Melissa (Thesis director) / Goldman, Alan (Committee member) / WPC Graduate Programs (Contributor) / W.P. Carey School of Business (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
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Description
Executive compensation is broken into two parts: one fixed and one variable. The fixed component of executive compensation is the annual salary and the variable components are performance-based incentives. Clawback provisions of executive compensation are designed to require executives to return performance-based, variable compensation that was erroneously awarded in the

Executive compensation is broken into two parts: one fixed and one variable. The fixed component of executive compensation is the annual salary and the variable components are performance-based incentives. Clawback provisions of executive compensation are designed to require executives to return performance-based, variable compensation that was erroneously awarded in the year of a misstatement. This research shows the need for the use of a new clawback provision that combines aspects of the two currently in regulation. In our current federal regulation, there are two clawback provisions in play: Section 304 of Sarbanes-Oxley and section 954 of The Dodd\u2014Frank Wall Street Reform and Consumer Protection Act. This paper argues for the use of an optimal clawback provision that combines aspects of both the current SOX provision and the Dodd-Frank provision, by integrating the principles of loss aversion and narcissism. These two factors are important to consider when designing a clawback provision, as it is generally accepted that average individuals are loss averse and executives are becoming increasingly narcissistic. Therefore, when attempting to mitigate the risk of a leader keeping erroneously awarded executive compensation, the decision making factors of narcissism and loss aversion must be taken into account. Additionally, this paper predicts how compensation structures will shift post-implementation. Through a survey analyzing the level of both loss- aversion and narcissism in respondents, the research question justifies the principle that people are loss averse and that a subset of the population show narcissistic tendencies. Both loss aversion and narcissism drove the results to suggest there are benefits to both clawback provisions and that a new provision that combines elements of both is most beneficial in mitigating the risk of executives receiving erroneously awarded compensation. I concluded the most optimal clawback provision is mandatory for all public companies (Dodd-Frank), targets all executives (Dodd-Frank), and requires the recuperation of the entire bonus, not just that which was in excess of what should have been received (SOX).
ContributorsLarscheid, Elizabeth (Author) / Samuelson, Melissa (Thesis director) / Casas-Arce, Pablo (Committee member) / WPC Graduate Programs (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2018-12
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Description
The Olympus case gives students an opportunity to analyze the factors and unique cultural environment that led to the accounting fraud in whistle blower Michael Woodford's perspective. It also provides students insights into a traditionally- structured Japanese company to identify the operation style and leadership distinctions from a U.S. structured

The Olympus case gives students an opportunity to analyze the factors and unique cultural environment that led to the accounting fraud in whistle blower Michael Woodford's perspective. It also provides students insights into a traditionally- structured Japanese company to identify the operation style and leadership distinctions from a U.S. structured company. The case is presented from the comprehensive public record and the book How I Went from CEO to Whistleblower, written by Michael Woodford, all surrounding the Olympus fraud and insider whistleblowing. A primary question that arose when the news of the fraud emerged in the media was: Did the accounting fraud solely result from the failure of Japanese executives' leadership style? Some people think that the Olympus president Tsuyoshi Kikukawa who owned ultimate power over the company is supposed to bear the most responsibility for this issue. However, this case argues that the answer to the previous question is no. What's more important than the corrupt executives is Olympus' operational system that indulged those executives' ambition. Therefore, the case focuses on an analysis of the operating system in regard to leadership, culture, internal controls, external controls and the board of directors. This analysis addresses the failure of Olympus comprehensively rather than placing blame on a single individual. It is an opportunity for students to understand and discuss the multiple aspects of a corporate system that should have the practicable controls and functions to prevent the abuse of decision-making power as well as the illegal activity from occurring.
ContributorsFan, Haiyi (Author) / Samuelson, Melissa (Thesis director) / Pany, Kurt (Committee member) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12
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Description
Given its impact on the accounting profession and public corporations, Sarbanes-Oxley Act of 2002(SOX) is a widely researched regulation among accounting scholars. Research typically focuses on the impact it has had on corporations, executives and auditors, however, there is limited research that illustrates the impact SOX may have on average

Given its impact on the accounting profession and public corporations, Sarbanes-Oxley Act of 2002(SOX) is a widely researched regulation among accounting scholars. Research typically focuses on the impact it has had on corporations, executives and auditors, however, there is limited research that illustrates the impact SOX may have on average Americans. There were several US criminal code sections that resulted from the passing of SOX. Statute 1519, which is often referred to as the "anti-shredding provision", penalizes anyone who "knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to" obstruct a current or foreseeable federal investigation. This statute, although intended to punish behavior similar to that which occurred in the early 2000s by corporations and auditors, has been used to charge people beyond its original intent. Several issues with the crafting of the statute cause its broad application and some litigation even reached the Supreme Court due to its vague wording. Not only is the statute being applied beyond the intent, there are other issues that legal scholars have critiqued it for. This statute is far from being the only law facing these issues as the same issues and critiques are found in the 14th amendment. Rewriting the statute seems to be the most effective way to address the concerns of judges, lawyers and defendants regarding the statute. In addition, Congress could have passed this statute outside of SOX to avoid being seen as overreaching if obstruction of justice related to documents was actually an issue outside of corporate fraud.
ContributorsGonzalez, Joana (Author) / Samuelson, Melissa (Thesis director) / Lowe, Jordan (Committee member) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12
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Description
This study examined if Hofstede's cultural dimensions are able to predict the scheme used to commit fraud and the frequency of the scheme. All six of Hofstede's cultural dimensions were applied to 9 different countries across the world. These countries were selected based on the number of fraud cases that

This study examined if Hofstede's cultural dimensions are able to predict the scheme used to commit fraud and the frequency of the scheme. All six of Hofstede's cultural dimensions were applied to 9 different countries across the world. These countries were selected based on the number of fraud cases that were reported in the 2016 Report to the Nations published by the Association for Certified Fraud Examiners. The theory was that Hofstede's Cultural dimensions would be able to predict the scheme that would be used to commit fraud. The results however do not support this hypothesis. There were some significant relationships between some of the schemes and Hofstede's cultural dimensions. However there were some of the schemes that had no significant relationships which could be due to the limitations of this study.
ContributorsGutierrez, Diana (Author) / Dawson, Greg (Thesis director) / Samuelson, Melissa (Committee member) / WPC Graduate Programs (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12
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Description
Community associations have become more prevalent in recent years. In 1964, there were fewer than 500 such associations across the United States (At-a- Glance Look at Homeowners Associations and Conflicts). As of 2003, that number had skyrocketed to about 249,000 associations (At-a-Glance Look at Homeowners Associations and Conflicts). That number

Community associations have become more prevalent in recent years. In 1964, there were fewer than 500 such associations across the United States (At-a- Glance Look at Homeowners Associations and Conflicts). As of 2003, that number had skyrocketed to about 249,000 associations (At-a-Glance Look at Homeowners Associations and Conflicts). That number further increased to about 300,000 associations by 2010 (Ross). The majority of these entities are located in Arizona, California, Florida, Texas, Nevada, and Hawaii (At-a-Glance Look at Homeowners Associations and Conflicts). Community association members are required to pay assessments. One half of these monthly assessments were between $100 and $200 in 2003 (At-a-Glance Look at Homeowners Associations and Conflicts). In 2003, the total annual revenue of United States associations was between $30 and $35 billion dollars (At-a-Glance Look at Homeowners Associations and Conflicts). Due to the large revenue inflows, lack of controls, and an atmosphere of trust, these organizations are susceptible to fraud. Lapses in control relate to issues of a lack of segregation of duties, check writing policies, detective controls such as budgets, and other related controls. Limited fraud controls are sometimes a byproduct of the atmosphere of trust. This atmosphere of trust is probably in part a result of the association's communal orientation as association members can assume that their neighbors have the community's best interest in mind. But this is not necessarily the case. Fraud is an activity which, in 2006, cost United States businesses approximately $652 billion dollars (DiNapoli 2). On average, the cost to protect organizations from fraud and abuse is estimated at between five and seven percent of their annual revenue (DiNapoli 2) (Ratley 8). This thesis explores best practices that small and large community associations can employ to deter such fraud. First, this thesis provides background information regarding community associations, including their structure and surrounding laws which are pertinent to understanding their relationship with fraud prevention. Next, fraud basics are discussed to address the motivation, organizational attributes, and personal characteristics common to this act. Then, examples of community association fraud are discussed to underscore the importance of establishing anti-fraud controls. Finally, best practices are discussed to help community association members and directors enact policies to curb this costly act.
ContributorsLaybourne, Steven (Author) / Goldman, Donald (Thesis director) / Pany, Kurt (Committee member) / Epps, Joe (Committee member) / Barrett, The Honors College (Contributor) / W. P. Carey School of Business (Contributor)
Created2012-12
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Description
The competitive nature of business requires managers to consistently work towards eliminating unnecessary costs and improving financial management. Worldwide, fraud remains a pervasive and expensive problem for businesses. Fraud involving misappropriation of assets (commonly referred to as embezzlement) and fraudulent financial reporting cost organizations trillions of dollars worldwide. To better

The competitive nature of business requires managers to consistently work towards eliminating unnecessary costs and improving financial management. Worldwide, fraud remains a pervasive and expensive problem for businesses. Fraud involving misappropriation of assets (commonly referred to as embezzlement) and fraudulent financial reporting cost organizations trillions of dollars worldwide. To better understand the most effective ways of combating misappropriation and to a lesser extent, fraudulent financial reporting, this paper evaluates research and reports the results of expert interviews with accountants, forensic experts, and security specialists.
ContributorsMurnane, George (Author) / Munshi, Perseus (Thesis director) / Pany, Kurt (Committee member) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
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Description

Have new fraud and earnings manipulation detecting tools improved confidence in capital markets? To answer this question, I will provide a survey of tools currently used to detect fraud and earnings manipulation, discuss the effects of fraud and earnings manipulation, and look at changes in historical records of consumer confidence

Have new fraud and earnings manipulation detecting tools improved confidence in capital markets? To answer this question, I will provide a survey of tools currently used to detect fraud and earnings manipulation, discuss the effects of fraud and earnings manipulation, and look at changes in historical records of consumer confidence and investment returns as a test to our question.

ContributorsCool, Grady K (Author) / Byrne, Jared (Thesis director) / Annis, Rachel (Committee member) / Department of Finance (Contributor) / Department of Economics (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
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Description

In light of the 2020 Presidential election, accusations regarding early voting methods have risen as a topic of debate among active voters. In order to ensure the voter’s trust in voting methods, it is important to analyze whether such accusations are truthful or just dramatized speculation. Do early voting methods

In light of the 2020 Presidential election, accusations regarding early voting methods have risen as a topic of debate among active voters. In order to ensure the voter’s trust in voting methods, it is important to analyze whether such accusations are truthful or just dramatized speculation. Do early voting methods negatively infringe on the integrity the U.S. election process? Using gathered voter statistics and conducted partisan research within recent elections, this defense examines the impact early voting has had through the analysis of two of its most controversial claims. The author finds that there exists little to no reasonable support to conclude existence of infringement to the integrity of the election process, and the reasons that explain this topic’s rise in popularity lies in the failure to accept defeat and the notion of fear.

Created2021-05
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Description

This thesis discusses accounting fraud in the workplace today, using the recent Wirecard scandal as a jumping off point. The thesis goes into the common causes of accounting fraud (organized by the three components of the fraud triangle), effective methods for countering fraud, and lessons that can be learned from

This thesis discusses accounting fraud in the workplace today, using the recent Wirecard scandal as a jumping off point. The thesis goes into the common causes of accounting fraud (organized by the three components of the fraud triangle), effective methods for countering fraud, and lessons that can be learned from the 2020 Wirecard scandal

ContributorsLudwig, William August (Author) / Garverick, Michael (Thesis director, Committee member) / Wolfe, Mindy (Committee member) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05