FRAUD IN CONSTRUCTION PART I: AN OVERVIEW OF FRAUD
[...]incidences can bankrupt companies and individuals, as witnessed in the Enron and Bernie Madoff catastrophes. Corruption is defined as a public official abusing his or her power in order to obtain a financial benefit - usually in a form of a bribe or kickback - such as bid rigging in the constru...
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Published in | Construction Accounting & Taxation Vol. 33; no. 4; pp. 13 - 20 |
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Main Authors | , |
Format | Trade Publication Article |
Language | English |
Published |
Boston
Thomson Reuters (Tax & Accounting) Inc
01.07.2023
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Subjects | |
Online Access | Get full text |
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Summary: | [...]incidences can bankrupt companies and individuals, as witnessed in the Enron and Bernie Madoff catastrophes. Corruption is defined as a public official abusing his or her power in order to obtain a financial benefit - usually in a form of a bribe or kickback - such as bid rigging in the construction industry. Enron is the poster example of financial statement fraud, and it resulted in the passage of the Sarbanes-Oxley Act (SOX) in 2002 (discussed later). If, for example, a poor earnings report is announced, causing the stock price to drop 15 percent, her net worth will be $935 billion, which will remove her from this club. |
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ISSN: | 1054-3007 |