A Brief Note On Fraud And Criminal Deception - 1211 Words

Fraud There are many definitions for the word fraud available from many sources, for example, dictionary.com defines fraud in a fairly basic sense as â€Å"deliberate, deception, trickery, or cheating intended to gain an advantage† (Dictionary.com, 2014). However for the case of this report, the definition by google.com is more appropriate and thorough with â€Å"wrongful or criminal deception intended to result in financial or personal gain† (Google). In all instances in the definition of fraud however, it can be concluded that an act or instance of fraud is goes breaks the rules of modern society, and as we shall soon see can frequently break the rules of modern law, and lead to negative legal action against the perpetrators of the fraudulent act.†¦show more content†¦Executives are unique in this sense since although other stakeholders may also have a financial interest in the company, they are the only stakeholder that can make claims to the value of their financ ial interest. Without auditors providing a (hopefully) unbiased opinion on managements’ assertions all other stakeholders, particularly shareholders, would be at the mercy of managements’ claims. Shareholders Shareholders of public corporations hold a special relationship with regards to the public corporations in modern business. Unlike many private companies shareholders of public corporations typically have no direct control over operations of their businesses. As shareholders they are entitled to their proportion of profits amassed by their company, through dividends, and are only limited in their potential losses as far as they invested into the company. Furthermore, shareholders’ influences over the company, excluding executives, only goes as far as having rights to vote proportionately to their earnings on a representative to manage the company (the executives). Waste Management The explanations of the positions discussed above are important to understand, as they set the precedent of the roles of the different parties that were involved in the Waste ManagementShow MoreRelatedInternet Fraud2358 Words   |  10 Pagescountries. There are now over 50 million people online. All kinds of information are available through the Internet at less cost or no cost at all. The Internet provides facts and ideas that are useful for the society, but the Internet is also a tool for fraud. The Internet â€Å"is a system of linked computer networks, worldwide in scope that facilities data communication services such as remote login, file transfer, electronic mail, and news group. The Internet is a ways of connecting existing computerRead MoreHuman Trafficking: A True Global Problem1856 Words   |  7 Pagesby means of the threat or use of force or other forms of coercion, abduction, fraud, or deception, the abuse of power or of a position of vulnerability or the giving or receiving of payments or benefits to achieve the consent of one person having control over another, for the purposes of exploitation (Human Trafficking, 2009). Human trafficking and smuggling are some of the fastest growing areas of international criminal activity a true global problem. Trafficking targets persons as the object ofRead MoreRole of Criminology in Determining the Emerging Patterns of Corporate Crime3821 Words   |  15 Pagescorporation (a business unit having a separate legal character from the natural persons that achieve its actions), or by individuals acting on behalf of a corporation or other business entity. White Collar crime is a quickly arising topic in the field of criminal justice. Recently, it has just been dubbed very popular with cases that are high-profile like the companies of Enron and Martha Stewart. In the book, Controversies in White Collar Crime by Gary W. Potter, author of the book thinking about Crime ProfessorRead MoreThe Growing Problem of White Collar Crimes in India19963 Words   |  80 Pagescontested, as the status of an offender may matter less than the harm done by someone in a trusted occupati onal position. The term ‘crime is also contentious as many of the harmful activities of businesses or occupational groups are not subject to criminal law and punishment but to administrative or regulatory law and ‘penalties or ‘sanctions. Therefore, a region specific definition of White Collar Crime can be:-- â€Å"White Collar Crime is an illegal act or series of illegal act for achieving an illegalRead MoreCommercial Liens - a Potent Weapon Essay32374 Words   |  130 Pagesin any form -| |except for personal use - without permission from the copyright holder. | Table of Contents Chapter 1 †¢ Introduction †¢ Scope and Purpose of Manual †¢ Some Notes on the Sample Briefs †¢ The Commercial Lien Strategy - Background †¢ Some Examples of the Strategy †¢ The Power Of Commercial Liens Chapter 2 †¢ Theory of Commercial Lien Strategy †¢ Introduction †¢ The Commercial Affidavit Process Read MoreAccounting Systems, Internal Controls, and Ethics28179 Words   |  113 Pagesthe entity authorises, completes, and records only appropriate transactions and, any fraud or error is detected in a timely manner. Managers and leaders at all levels of the entity are responsible for ensuring that an appropriate and effective control environment is in place in their areas of responsibility. However, all personnel have the responsibility to communicate observed or suspected problems involving fraud or other improprieties regarding the entity’s resources. In this context, it is vitalRead MoreAuditing Cases22626 Words   |  91 PagesParagraphs 52—53 of PCAOB Auditing Standard No. 12. How might a revenue recognition fraud occur under Enron’s strategy in the late 1990s? Identify an internal contiol procedure that would prevent, detect, or deter such a fraudulent scheme. Consult Paragraphs 65-69 of PCAOB Auditing Standard No. 12. Based on your understanding of fraud risk assessment, what three conditions are likely to be present when fraud occurs (the fraud triangle)? Based on the information provided in the case, which of these threeRead MoreThe Challenges Facing Administration Motor Insurance Management and Operational Risk in Kenyan Insurance Company15608 Words   |  63 Pageshowever to note that it is not the house, ship etc that is insured. It is the financial or pecuniary interest of the insured in the subject matter that is insured. The subject matter of the contract is the name given to the financial interest which a person has in the subject matter of the insurance. Before this principle, wagers in general were legally enforceable and courts had no option but to enforce them like insurance contracts. This position led to an increase in murder cases and fraud. RespondingRead MoreCorporation (Fisch) Outline Penn Law Essay62808 Words   |  252 Pagesrelationship exists. †¢ This is true even where student receives scholarship or is recruited by university; the university charges an attendance fee; the university purchases equipment/uniforms, etc. ââ€" ª Note ââ€" ª Note that parties’ characterization of their relationship does not control. Why not? ââ€" ª Agency relationship may not exist even when parties have not formally agreed to one ââ€" ª Consent requirementRead MoreAcca P7 Notes24991 Words   |  100 PagesACCA Paper P7 (INT) Advanced Audit Assurance Class Notes December 2011 Lecturer: Contents INTRODUCTION TO THE PAPER 2 CHAPTER 1 – REGULATORY ENVIRONMENT 3 CHAPTER 2 – PROFESSIONAL AND ETHICAL CONSIDERATIONS 8 CHAPTER 3 – PRACTICE MANAGEMENT 13 CHAPTER 4 – ASSIGNMENTS I: THE AUDIT OF FINANCIAL STATEMENTS 16 CHAPTER 5 – ASSIGNMENTS II: GROUP AUDITS 42 CHAPTER 6 – AUDIT REPORTS AND OTHER REPORTS 45 CHAPTER 7 – ASSIGNMENTS III: OTHER ASSIGNMENTS 57 CHAPTER 8 – CURRENT ISSUES

Kants Formalism Theory Essay - 715 Words

Kants Formalism Theory nbsp;nbsp;nbsp;nbsp;nbsp; The theories of Immanuel Kant, a German philosopher, have had an impact on the formulation and shaping of ethics today. Immanuel Kant graced this earth from 1724 to 1804. During his eighty year life time, he formulated many interesting ideas regarding ethical conduct and motivation. nbsp;nbsp;nbsp;nbsp;nbsp;Kant is strictly a non-consequentialist philosopher, which means that he believes that a persons choices should have nothing to do with the desired outcome, but instead mankind simply goes about doing good because it is morally correct. Kant theorizes that moral reasoning is not based on factual knowledge and that reason by itself can reveal the basic principles of morality.†¦show more content†¦In order to define and develop ones sense of duty, Kant developed the next component of his theory: the categorical imperative. nbsp;nbsp;nbsp;nbsp;nbsp;In essence, the categorical imperative states that what is fair to one must be fair to all. As worded by William H. Shaw, quot;an act is morally right if and only if we can will it to become a universal law of conduct.quot; Kant, who relied heavily on logic, insists that moral rules must by categorical rather than hypothetical. Hypothetical laws take on the quot;if....thenquot; form of action. If you want to reach a specific goal, then you will accomplish these tasks. On the other hand, categorical laws apply to everyone. Regardless of goals or desired outcome, the categorical imperative commands unconditionally. (Shaw, 67) nbsp;nbsp;nbsp;nbsp;nbsp;Kant developed another idea which exemplifies that of the categorical imperative. The principle of universal acceptability states that as rational, moral beings, individuals are bound by logic and its demands. Because logic is consistent, individuals all live by the same moral law. in order to determine whether a rule is a quot; moral law, we can thus ask if the rule commands would be acceptable to all rational beings acting rationally.quot; (Shaw, 67) Kants view of universal acceptability appears to be intertwined with echoes of the quot;golden rule.quot;Show MoreRelatedEssay about Kants Formalism Theory716 Words   |  3 PagesKants Formalism Theory The theories of Immanuel Kant, a German philosopher, have had an impact on the formulation and shaping of ethics today. Immanuel Kant graced this earth from 1724 to 1804. During his eighty year life time, he formulated many interesting ideas regarding ethical conduct and motivation. Kant is strictly a non-consequentialist philosopher, which means that he believes that a persons choices should have nothing to do with the desired outcome, but instead mankind simplyRead MoreMorality via Kant and Hegel1712 Words   |  7 Pagesobjectively what one ought to do, or do our moral intuitions rest solely on subjective, arbitrary grounds? With the lure of divine command theory fading from the Enlightenment and onwards, modern moral philosophy can be seen as an attempt to uncover either the criterion or its nonexistence. An endeavor in which few can be said to have been as influential as Immanuel Kant (1724-1804) and his most trenchant critic, G.W.F. Hegel (1770-1831). Kant’s deontological attempt to unearth this criterion rests onRead MoreKant s Categorical Imperative For Moral Knowledge1500 Words   |  6 Pagesshould be discarded, as a moral obligation is an obligation for all. It is obvious to all that in order for a principle to have any force in regard to morality, ‘it must carry with it absolute necessity’ (1898:130). If not, the obligation itself, as Kant declares, is easily doubted. Empirical ethics isn’t sufficient. An example commonly used refers to the instruction, ‘thou shalt not lie’. In that, its validity is not based solely on the judgement of man. Its moral obligation is a priori, found purelyRead MoreKotchians Moral Dilemma1652 Words   |  7 Pagesto prioritize the livelihood of the company versus his own. On the other hand, Kotchian’s action from a Formalist perspective was unethical; the bribes contradicted Kant’s categorical imperative. Utilitarian Perspective Utilitarianism is a theory of normative ethics holding that the proper course of action is the one that maximize utility, specifically defined as maximizing happiness and minimizing pain. The application of the utilitarian perspective is not simple if there are more than oneRead MoreMoral Theories Of Human Rights1614 Words   |  7 PagesAFRICA UNIVERSITY Institute of Peace Leadership and Governance: Master of Human Rights Peace and Development What do you understand under the philosophy of human rights and the reality of moral theories? PROF G. MENELICK : PHR 500 Laurelle Mbaradza 160563 Date _______________________________11 February 2017 ABSTRACT The paper gives a roadmap on the foundations of human rights from the mediaeval to modern times. It explains the need for one to understand the philosophical foundationsRead MoreJohn Stuart Mill And Immanuel Kant1786 Words   |  8 PagesJohn Stuart Mill and Immanuel Kant. They both had very different views when it came to the ethics of philosophy. They also though had some of the same views as each other. Both were concerned with the moral qualities of actions and choices of a person, but neither of them was much interested in about what makes a good person. They also different views and some of the same views when it came to lying. One thought it should never be done. The other thought it should be used as a last resort. FirstRead MoreIs it Possible to Define ‘Art’?1656 Words   |  7 Pagesimagination, typically in a visual form such as painting or sculpture, producing works to be appreciated primarily for their beauty or emotional power. The above quotation is the Oxford Dictionary’s definition of art. It is one of the many definitions and theories written in answer to the question â€Å"what is art?† However, that very question implies an inhibited and essentialist answer such as â€Å"Art is†¦Ã¢â‚¬  Throughout the centuries philosophers, critics and authors have attempted to edge us ever nearer to the evasiveRead MoreEthical Views Of Kant And Nielsen3041 Words   |  13 PagesThe purpose of the paper is to compare ethical views of Kant and Nielsen. Both figures are quite noticeable in philosophy of ethics. The works of Kant stand out among the philosophical treatises on ethics. Kant’s ethics in many ways was the pinnacle of moral philosophy of modern times. Nielsen considered that philosophy is related to practical matters. Philosophy thinking includes abstract theorizing and practical action. Nielsen claims that morality cannot be grounded on religion, and that thereRead More Why Could nt Kant Be A Utilitarian? Essay3254 Words   |  14 PagesWhy Couldnt Kant Be A Utilitarian? ABSTRACT: In his essay Could Kant Have Been a Utilitarian?, R. M. Hare tries to show that Kants moral theory contains utilitarian elements and it can be properly asked if Kant could have been a utilitarian, though in fact he was not. I take seriously Hares challenge to the standard view because I find his reading on the whole reasonable enough to lead to a consistent interpretation of Kants moral philosophy. Still, I hardly believe that it is necessarilyRead MoreThe Legal Ethics Of The Unlicensed Engineer Essay1349 Words   |  6 Pagesethics are not just about whether or not one puts money before safety. This paper will nevertheless delve on the ethical issues raised by the case. However, the author will strive to highlight all the ethical standards, in addition to, citing several theories to advance his case. Charles Landers was found guilty of using his partner Henry Wilson’s professional seal in addition to forging signatures on at least 40 documents. Formerly Landers worked for Constructing Engineers as an anchorage assemblyman

Financial Markets Assignment free essay sample

Explain how interest rates decline following major Fed purchases of mortgage-backed securities. The FED implements quantitative easing by buying financial assets of longer maturity, e. g. , mortgage-backed securities, from commercial banks and other private institutions in order to inject a pre-determined quantity of money into the economy. This is a means of stimulating the economy and lowering longer-term interest rates further out on the yield curve; quantitative easing increases the excess reserves of the banks, and raises the prices of the financial assets bought, which lowers their yield. Graphically, this can be explained with the aid of Figure below. The supply of money is shifted from point 1 to the right (MS1 to MS2) and, all else equal, the new equilibrium point (with aggregate money demand curve) is at point 2, where the interest rate is lower. i i1 i2 AD1 MS1 MS2 Quantity of Money 2. What could be the implications of lower interest rates for households and businesses? By implanting the policy of purchasing mortgage-backed securities, the FED has set its sight on increasing consumption and investment, which will ultimately increase employment. As described in question one Bernanke’s policy decreased interest rates to new record lows, encouraging borrowing for both businesses and households. The ability to borrow money at more attractive rates stimulates investment in durable consumer goods, such as automobiles, and in operational necessities such as buildings and capital equipment for businesses. Indeed, after the implementation of the policy mortgage applications increased significantly. Because of low interest rates households and businesses as investors could shift their preference away from bonds and into stocks. According to frbsf. org, the increase in stock trading volume has the effect of raising the value of existing stock portfolios, which in turn stimulates consumer and spending across the country due to the psychological effects of rapid capital appreciation. Lower interest rates can have negative effects on the value of the local currency compared to other currencies. As foreign investors dump their local-denominated investments in favor of more profitable currencies, exchange rates can shift to the detriment of the local currency. The weakening of the local currency serves to increase the attractiveness of local goods to foreign purchasers, which has the effect of boosting exports and international sales. All of the factors mentioned above have the combined effect of increasing productive output, or GDP, and increasing employment across a wide range of industries. As individuals, businesses and foreign investors are encouraged to spend more due to increased access to capital, higher portfolio valuations and weaker currency values, businesses in nearly every sector experience an increase in sales, often requiring them to grow their operations and employ additional labor. However, there are some negative implications from this policy. Without a strong commitment to control inflation over the long run, the risk of higher inflation is one potential implication of experiencing real interest rates below the economy’s natural interest rate. Low interest rates provide a powerful incentive to spend rather than save. In the short term, this may not matter much, but over a longer period, low interest rates penalize savers and those who rely heavily on interest income. If short-term interest rates are low relatively to long-term rates, households and firms may overinvest in long-term assets, such as Treasury securities. If interest rates rise unexpectedly, the value of those assets will fall (bond prices and yields move in opposite directions), exposing investors to substantial losses. Finally, low short-term interest rates reduce the profitability of money market funds, which are key providers of short-term credit for many (large) firms, e. g. the commercial paper market. 3. Explain the Fed’s policy dilemma and try to rationalize why unemployment in the US is stubbornly high while inflation is low. Based on the theory of the Philip’s curve diagram we notice that there is an inverse relationship between inflation and unemployment. Stated simply the lower the unemployment in an economy the higher the rate of inflation. Philip’s Curve Inflation Unemployment The explanation of the inverse relationship between inflation and unemployment is based on two assumptions. The first has to do with the fact that as unemployment rises there is no room for workers and labor unions to demand an increase so a wage inflation that would increase the prices of the final products cannot occur. Secondly high unemployment is a reflection of the decline in economic output and indicates an economy’s slowdown. Therefore competition among firms in recession will lead the prices at lower levels. But this is not the case currently in the US since we observe high unemployment and low inflation. The FED is concerned about the unemployment rate and in an effort to stimulate the economy and improve the labor market conditions it started implementing the quantitative easing policy. So the FED purchased MBS, helped banks to rebuilt their balance sheets, contributed into maintaining price stability, preserved interest rates near zero for more than three years, and prevented the economy from slipping into greater recession. Despite all these efforts the situation in the labor market did not improve. Apparently the fact that unemployment is still very high depicts the limitations of the monetary policy. The low business confidence, policy uncertainty, and the government’s reluctance to act are beyond the FED’s capacity. What is more the infinite use of the quantitative easing may produce undesirable effects in the long run such as stagflation. The only optimal solution under these circumstances is the co ordination of the FED’s monetary policy with the government’s fiscal policy plan that could boost the society’s confidence. . Do you think that another round of quantitative easing (QE) by the Fed would help stimulate the US economy? Please explain. The FED declared that the use of QE will be aggressively continued until the economy is improved. The cash injections into the economy helped interest rates to remain at low levels. Consequently everyone wins from this decision in the short run; homeowners can borrow at historical low levels of inter est rate, corporations can also take advantage of this act and invest, consumption increased and also the banks increased their profits and the stocks record a growth. So as long as the QE is active in the short run everyone is a winner. But in the long run things become vague. First of all historical evidence shows that despite the fact that interest rates may be at levels near zero it remains uncertain whether this will be the incentive to boost the actual economy. Secondly the fact that consumers will have more money to spend but fewer goods to buy might lead to a hyper inflation. Furthermore by repeating the use of QE is very possible to lead to a liquidity trap, unless the economy finds ways to stimulate production. Last but not least the FED’s decision to inject cash into the economy by purchasing MBS is questionable; Mortgage backed securities entail the risk of defaulting once again as they did in the real estate crisis and that would cost the Americans a lot more money repeating the history that started back in the September of 2001. To sum up the use of QE is indeed very effective but only in the short run. Short periods of economic recession can be avoided by stimulating the economy temporarily through cash injections but to maintain growth on the real economy we need to improve labor market conditions, productivity, innovation and bolster the economy’s confidence. So a combination of fiscal and monetary policy is the only way to prevent an economy from collapsing, and also is this is the only way to avoid a possible systemic risk that will negatively affect all the institutions and individuals. . How is a loose Fed monetary policy in the US affecting fundamentals (such as inflation, asset and commodity prices) in other countries? What does that imply about global monetary policy? Since the dollar is the vehicle currency in the global economy almost every country is tied to its value and everyone is affected by the monetary decisions of the FED. By the QE, the supply of dollars is increased and consequently the dollar depreciates against foreign currencies. This means that America’s exports will increase and on the contrary the imports will decrease. So countries trading with the US fear about the capital inflows and the possible inflation on commodities. On the other hand the FED support that there can be no further inflation since the global economy is in recession. Moreover countries experiencing huge capital inflows resulting in inflation can implement fiscal policy, such as imposing taxes, in order to contain the effects of foreign capital inflows which push up local stock prices and the currency itself. Every country should focus on its own monetary policy adjusting it to the problems that may experience. For example the US chose to inject more money in the economy. The results of such a decision are low interest rates, more exports but always with the risk of inflation. On the other hand a country experiencing high inflation might limit the money supply, increasing the interest rates with the risk of experiencing a decline in exports.

Mercantilism Essay Example

Mercantilism Paper In attempt to gain wealth and power, Great Britain started to enforce the theory of mercantilism.Their motive was to increase their prosperity using their colonies.They expected the colonies to provide them with goods and to only buy British goods in return. As a result of this attempt, the colonies were actually the ones who were benefiting from mercantilism the most.The colonies benefited economically, socially, and politically.Due to the Navigation Laws, the English were restricted only to trade with England, which lead the colonists to smuggling for profits.Americans enjoyed the rights of pure Englishmen.The colonists gained opportunities to form self-governments. Due to the Navigation Laws, the English were restricted only to trade with England, which lead the colonists to smuggling for profits.Great Britain did not want the colonies competing with the English industry.Before the Navigation Laws, the colonies were under salutary neglect and England was not aware of what the col onies were doing to earn their money.The colonists felt that only being able to trade with England was holding them back.Many found ways to get around the laws by smuggling their exports to foreign countries and earned a great fortune. In order to control foreign markets sea power was necessary.Britain expected the colonies to provide ships, ships stores, sailors, and trade to guarantee their naval supremacy.Colonists earned direct benefits from supporting Britains Navy.England paid them bounties and price supports for their help.American planters also profited by trade with England through their monopoly over the tobacco market in Britain. American colonists enjoyed the pure rights if Englishmen.England gave unity to its policies and was working to help the welfare of t