Question

rules and regulations in the accounting profession are meant to be broken, not followed. Give 3 current instances in 2016 who violated rules and why?

Answer 1

The three instances in 2016 that violated rules are:

1. Fake accounting in Well Fargo in 2016: the company wanted to grow profits and thus it relied on its ability to sell the profitable products to the consumers. Thus the pressure had led the employees to open fraud accounts of the customer to show high profits and thus led to loss of reputation to company.
2. Fraud in Alberta Motor Association: in this case, the company wanted to maintain its high profits and sales and thus had shown fraudulent invoices in the accounting system which showed the overstated profits.
3. Fraud in Odebrecht: In this case, the company had taken government bribes and had shown them as income leading to high income in income statement and thus representing better financial picture which is a fraud.