Please enable JavaScript.

Coggle requires JavaScript to display documents.

describe and contrast a range of categories of business crime; (seven…

- - - - can be defined as:
        Manipulation of financial reporting in order to convey a misleading impression of the financial performance or the financial position of a business entity. The purpose of such manipulation can be many and varied but it is typically associated with improperly obtaining a financial advantage for an individual or group of individuals.
      - Wells’s (2013) fraud classification breaks financial statement fraud into five subcategories (in effect there are five methods of financial statement fraud):TDARL
        
        timing differences;
        
        fictitious revenues;
        
        concealed liabilities and expenses;
        
        improper disclosures; and
        
        improper asset valuation.
        
        figure 3.5!!!!
        
        table 3.2!!!!!
      - is that executives at senior levels are as likely to justify certain questionable or unethical acts as their more junior colleagues. This should be a significant concern given their ability to override internal controls. Six percent of respondents stated that misstating financial performance is justifiable in order to survive an economic downturn (Ernst & Young 2014, p. 7).
    - - bribery and corruption!!!!
      - Businesses need to consider bribery and corruption at two levels:
        
        Businesses must consider the effect of bribery on their local operations—the risk of someone corrupting the integrity of the business by paying or receiving bribes and the financial effect on the business if that occurred.
        
        Businesses operating offshore may also need to be concerned about the same risks in other countries as well as complying with anti-bribery legislation in the countries in which they operate.
      - corruption
        
        The definition of corruption in AS 8001–2008 (para. 1.7.4) is:
        Dishonest activity in which a director, executive, manager, employee or contractor of an entity acts contrary to the interests of the entity and abuses his/her position of trust in order to achieve some personal gain or advantage for him or herself or for another person or entity. The concept of ‘corruption’ within this standard can also involve corrupt conduct by the entity, or a person purporting to act on behalf of and in the interests of the entity, in order to secure some form of improper advantage for the entity either directly or indirectly.
        
        The concept of ‘corruption’ within this standard can also involve corrupt conduct by the entity, or a person purporting to act on behalf of and in the interests of the entity, in order to secure some form of improper advantage for the entity either directly or indirectly.
      - International
        
        Firms operating in jurisdictions outside their home country should develop internal controls to reduce their risks. Critical internal controls include making sure that there is access to accurate local legal advice wherever the business operates. A business operating overseas should work with its local legal advisers to understand what business practices may be illegal in the jurisdiction. Company managers who are transferred to a new national environment should also be made aware of the local legal environment.
        
        An important issue in controlling foreign bribery is the focus many organisations have on their compliance obligations. Many organisations operating globally have a complex range of foreign bribery risk management obligations mandated by legislation such as the Foreign Corrupt Practices Act (US) (FCPA), the Bribery Act (UK) and the Criminal Code Act (Australia). All of these require organisations that are subject to their provisions to implement robust measures for the control of foreign bribery.
        
        But the related legislation and the regulatory guidance is very prescriptive. In the current compliance-driven age, many organisations seem more concerned with compliance with legislative requirements than they are about actually stopping foreign bribery. This has given rise to transacting through local ‘agents’ on an ‘ask-no-questions’ basis at the same time as having ‘suspicions’ (but not knowing) that expenses paid to these agents may be connected with bribery of foreign officials. Complying with the foreign bribery provisions, or at least being seen to comply with the foreign bribery provisions, appears to be the main focus of many organisations rather than stamping out the behaviours.
    - - PLI
        Three stages of money laundering
        • Placement: Initial process of getting money accepted into the financial system. Use of banks, casinos for placement.
        • Layering: Carrying out a series of transactions to distance the money from its original placement.
        • Integration: Getting the money accepted into the lawful economy, its origins very difficult to trace.
        
        figure 3.6!!!!!!
      - cleaning’ the money is difficult to achieve because it requires sophisticated schemes to remove the entire traceability of ‘dirty’ money, no matter how many times the three-phase process is put into operation (Madinger 2012).