Fraud refers to an illegal practice undertaken with an intention to mislead the truth, obtain money, personal gain, or receive undue advantage.
Generally, the companies do not admit or deny the findings in the settlement of civil fraud. Hence, the given statement is "False".
Therefore, the correct answer is
It is a manipulation of financial statements made intentionally by an employee or the organization itself. It is made to show that financial health of the company is good and misleads the investors and shareholders of the company.
Company WC faced the following problems repetitively:
• Internal control was defective and inadequate.
• The company's internal control department was under staffed and those staffs in the department worked under the manager who was responsible for the conduct of audit.
Mr.S was the Chief Finance Officer (CFO)of the Company WC. It was challenging for the internal audit department in submitting the report to Company CFO, because the company's own CFO had initiated the entire accounting fraud. Hence, the correct answer is
Financial Crisis of 2008
During 1999, the Glass-Steagall Act was revoked and that is replaced by the Financial Services Modernization Act. The latter Act was approved to remove imposed control on the banking segment in the Country U. But, this decontrol on baking division lead to the foundation for crisis in financial sector during 2008.
As a result of crisis, housing market and its value starts to sink. Numerous house owners begin to surrender their residence at the time of stoppage in mortgage repayment and this lead to toxic or risky mortgages loan.
Hence, the correct answer is