Approaches against Fraudulent Activities Case Study

Approaches against Fraudulent Activities - Case Study Example Hence, even poorly performing firms obtained huge amounts of credits from MCI and this condition adversely affected MCI’s operational efficiency. When receivable collection periods went beyond the stipulated timeframe, the organization was forced to write off some of its receivables. Undoubtedly, this condition caused the firm to experience a rise in its expenses and thereby a decline in earnings per share. Ultimately, MCI’s stock price dropped due to the decline in EPS. As Lyon and Tocco (n. d.) point out, Pavlo used a variety of accounting tricks to convince the management that the level of bad debts and amount receivables had fallen under the safety range. In other words, Pavlo totally manipulated the accounting system to conceal the actual state of affairs of the company. It is obvious that the absence of a well-executed internal check system assisted Pavlo to apply unfair accounting tricks to deceive the company management. A person is not allowed to carry through a transaction from beginning to end under the internal check system. ... situation aided him to employ accounting malpractices such as ‘unapplied cash’ and ‘placeholder credits’ to conceal MCI’s actual financial status. Approaches against Fraudulent Activities If an individual suspects fraudulent activity within the organization where he works, it is advisable for him not to make any false allegation. In addition, he must never try to take any unfair advantage of that fraudulent activity. Every organization has a distinct corporate culture and hence a specific mechanism to report fraud. It is recommendable for the individual to strictly adhere to the accepted fraud reporting mechanism of the organization. If an individual suspects fraud in his organization, firstly he must make an immediate note of his concern. He should specifically try to note relevant details concerning the fraud including telephone conversations, date and time, or names of parties involved. Secondly, the individual has to report the fraud to someone wi th proper authority and experience. Generally, it is better to report fraud to line managers, internal auditors, or whistleblowers. In addition, fraud may be reported to the Monitoring Officer, Chief Executive, or the Director of Finance. The individual should not make any delay in reporting the suspected fraud to proper authorities because such a situation would cause the organization to suffer further financial loss. Finally, the individual should ensure that the authority has taken proper actions over his fraud report; otherwise, he must report the case to higher authorities. Under no circumstance, the individual can disclose his suspicion to public or any other unauthorized person.  

Analysis of Globalization and Transnational Processes Literature review

Analysis of Globalization and Transnational Processes - Literature review Example Apart from the highly debatable claims about the diminished role f states, there are additional issues that theories f globalization face. For the focus on how globalization negates the very concept a center and periphery by generating diasporic public spaces tend to lead to an undertheorizing f the differentiated peripheries, which have disparate relationships with the various centers. This is an undertheorizing f the centers which, United States hegemony not-withstanding, are composed f a number f complexly hierarchized and contending entities, for example, in Scottish--English--Welsh relationships. It is, as well, an undertheorizing f the peripheries which also have complex hierarchical inter-ethnic, cultural, and sometimes racial inter-relationships, first fall within their own borders, then between themselves as peripheries, and, finally, with the various centers. In other words, in theorizing the undoubtedly new phenomenon f globalization, it is critical not to lose sight f the specifics f this process. There are complex and dynamic patterns f racial, ethnic, cultural, class, and social hierarchies that are being generated within particular societies and on a global scale. Sometimes these generate new hierarchical spaces, but often they reinforce old hegemonies within and between nations, without necessarily undermining the power f nation-states as such. Thus I have pointed out that globalization, as it restructures societies internally, simultaneously establishes and reinforces international hierarchy f races, ethnicities, cultures, and nations. Broadly speaking, this hierarchy is based on an international ranking according to political, economic, and cultural prestige and power. This is measured, for example, by such standard economic criteria as per capita gross national product rates f technical innovativeness, and the obvious consequences that economic and technical dominance has for global military dominance. This global racial-cultural hierarchy places Anglo-American culture at the apex and Sub-Saharan African culture at the base. Hegemony is exercised, the first fall, within the complex racial and cultural hierarchies internal to the United States and Europe, and through this route, extends itself globally. Latin, Slavic, Chinese, Japanese, Korean, Hindu, and other cultures (usually with their own complex and dynamic internal cultural, social, economic, and political hierarchies) jostle to occupy intermediate positions between the two extremes.  Ã‚