Management and Organizational Studies 3367A/B Lecture Notes - Lecture 8: Slush Fund, Financial Statement, Going Concern

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3367A/B
• Professor: weingartner

Document Summary

Worki(cid:374)g (cid:449)ith supplier tell the(cid:373) that (cid:455)ou (cid:449)ill use the(cid:373) (cid:271)ut (cid:455)ou (cid:449)a(cid:374)t so(cid:373)e of the product for yourself (buy ten computers, but want one for free for yourself) You know you wont get approval for what ever it may be. So you create a slush fund, where you say the funds are for something else. Construction company would use fake companies to put in really bad bids so that his company would get picked. Then sub-contract out work but say he completed the work himself. Need recognition scheme: tailoring the job description/requirements to a specific person or company that they already know they want to hire/use. Typically includes: overstated assets or revenue or understated liabilities or expenses. Who commits it: senior management, mid and lower level employees (in accounting usually, organized criminals. Why do they commit it: to conceal true business performance, to preserve personal status/control, to (cid:373)ai(cid:374)tai(cid:374) perso(cid:374)al i(cid:374)(cid:272)o(cid:373)e/(cid:449)ealth", for tax purposes.