Forensic accounting and fraud examination
The objective is to assess your capacity to
o research a topic of commercial significance
o summarise your findings into a coherent manner
o assess your capacity to apply concepts reflected in materials discussed in class to a real world situation.
For the purpose of the exercise assume that you are an investigator reporting on your findings to authorities and recommending that they take some course of action. ABC Learning in Australia, like Enron in the USA, was the subject of a spectacular corporate failure.
Compare and contrast the situation in ABC Learning to Enron and Worldcom in terms of their growth patterns, their manipulative accounting practices and the impacts their failures had on the business community.
Answer following questions:
o What were the similarities and differences between the accounting frauds involved?( using table to comparison, then explain in detail)
o Were regulators in possession of enough credible information to act sooner? Why in reality did they not so act?
There are numerous sources of information from which you can prepare your essay. They include SMH and Financial review archives. BRW articles and of course the internet, (a Google search will give thousands of references). Additionally there are now numbers of auditing and other reference books which contain materials on both cases so a library/ literature search will provide ample material.