Homework: Financial Statement Fraud
For this homework, you are to select a financial statement fraud related to a publicly traded company. You may use the Internet to research and find a fraud example. Write a research paper (1,500 to 1,750 words) on the topic and include the following:
1) Discuss a brief background on the financial statement fraud.
2) Explain the five classifications of financial statement fraud and which category your chosen fraud might fit into (Fictitious Revenues, Timing Differences, Concealed Liabilities and Expenses, Improper Disclosures, and Improper Asset Valuation).
3) Why might senior management overstate or understate business performance?
4) How can financial statement fraud be deterred? Discuss at least three internal controls that could be in place to prevent financial statement fraud.
5) Discuss the potential impact of the fraud you selected on the various stakeholders of the company.
Format your homework according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.