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Thursday, September 12, 2019

MF Global Research Paper Example | Topics and Well Written Essays - 1250 words

MF Global - Research Paper Example The executives by the end of that month made it official that over 700 million USD had been transferred. They, however, could not pay back this capital with their revenue making it plummet into more debt. At the end of the liquidation period, customers of MF Global made losses that totalled over 1.6 billion dollars, and a majority have not received their funds till today. Difference between conducting fraud and financial audit Audits are done to ensure the smooth running of operations. They may be done after some time as per the organization’s request, as in the case of financial auditing. Furthermore, they may be arbitrary and without warning, as in the case of fraud auditing. There are different types of audits, carried out for different purposes. There are reasons that surround each of these audits. One main reason is the accuracy of financial information in the organization. This is one reason why financial audits are carried out, and they can be done by a qualified, indep endent party or government unit. Fraud auditing is often done to discover some of the hidden figures in the financial data of an organization (Hagan, 2012). This means that, outside parties may be brought in to conduct a fraud audit, but internal auditors of an organization may be responsible for financial auditing. ... If there is the confirmation of fraud, serious legal ramifications may result (Hagan, 2012). There must be a level of responsibility for the auditing firm in both cases. If there are any financial discrepancies in the financial departments or operations, it is up to them to disclose this information. This may lead to the saving of capital that would have otherwise been lost in data. Fraud auditing may need a little more time and effort to identify what information may be missing that is crucial in the financial docket. A code of ethics needs to guide all the parties involved to ensure their tasks are carried out accordingly. The obligation of corporate CEOs to shareholders and employees about the firm’s financial activity The growth of an organization means that the CEO may have a daunting task of keeping an eye on everything that goes on in the firm. They must delegate some of the duties to subordinates. This helps in ensuring that there is a chain of command that is followed before getting to the top. However, they may not have full control over what subordinates may do, so it is up to them to ensure all matters relating to the financial sectors of the firm are reported directly to them. The shareholders of the organization are the most crucial part of the firm. CEO’s should be the voice of the organization and any financial activity going on should be reported to the people involved (Hagan, 2012). The CEO needs to tell the shareholders of the people in charge of the activities, and what they need to do if they have any complaints or suggestions. As CEO, it is one’s job to understand what goes on in the firm in

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