Question

There are two common causes of business and accounting fraud:

• A failure of individual character
• A culture of greed or ethical indifference within an organization

Write a brief memo describing how these two factors could lead to accounting fraud.

Write your response as requested above. It should be in memo format as requested, and must be 250 – 400 words. Feel free to use scholarly sources to support your position. If sources are used, be sure to cite the sources in-text and include a reference page for the sources. Cite and reference in APA format. Be reminded that if you use information from another source that source should be credited for that information.

Answer 1

Memo:

To: My Teacher

From:   ABC

Date:   January 1, 20XX

Re:   Causes of Accounting Fraud

Business and accounting fraud typically result from either a failure of individual character or a culture of greed within an organization. Managers and accountants often face pressure to meet or exceed a company's financial goals. At times, supervisors can place pressure on individuals to violate accounting standards to improve a company's reported financial results. Individuals who give in to these pressures exhibit a failure of individual character. In other situations, the organization may expect employees to violate accounting rules as part of their job. This occurs in organizations that do no value ethical decision making or fair financial reporting and exhibit a culture of ethical indifference.