Accounting Fraud

Type
Essay
Pages
5
Word Count
985
School
other
Course
Acct 5323 Section 070 Accounting for Managers
Running Head: ACCOUNTING FRAUD 1
Accounting Fraud
Acct 5323 Section 070
Accounting for Managers
ACCOUNTING FRAUD 2
Accounting fraud
Accounting fraud , which is a very broad topic, is a term used in reference to the act of
intentionally manipulating financial statement with the intention of creating a façade of the
financial health of an organization. Accounting fraud always involves a single employee, the
entire accounts department or an organization with the intention of leading shareholders and
investors that their money is safe with the organization. Accounting fraud can come in the form
of overstating assets or revenue, understating liabilities and failing to record expenses. Over the
years, there are many organizations that have been charged with the involvement in accounting
fraud .This paper is to broaden my knowledge in accounting for managers class that I am taking
and my findings will be based on Panasonic and Wells Fargo irregularities. With Panasonic and
Wells Fargo as the primary examples, this paper discusses accounting fraud.
In April 2018, Panasonic was charged with the violation of Foreign Corrupt Practices Act
(FCPA) and the engagement in accounting fraud in some of their practices in their avionics
business. The accounting fraud that Panasonic was charged with was the involved in the
falsification of their net and pre-tax incomes by means of overstatements. The revenue that was
recorded by the company was $82 million more than what they got for the 2011-2012 fiscal year
(US Securities and Exchange Commission, 2018). They accomplished the fraud by backdating
an agreement that they had with a state-owned airline and giving misleading information to the