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Management Fraud Essay

849 Words4 Pages

Introduction: The world that we have a tendency to sleep in nowadays has been run by the well developed monetary system. Every minute, an enormous wealth are bought and sold regularly . multiple systems have been created to safeguard those wealth, assets and information that are valuable to a company but that haven't stopped fraudsters from their illegal ways and manipulations. Managers play a substantial role in fraud ,that type of fraud is referred to as management fraud, which represents the most vital type of fraud due to it's affects on the financial market. The implementation of many controls to prevent fraud haven't yet reached the level of satisfaction to most companies, managers and fraudsters in general have found various ways to misappropriate assets for their own benefit , ignoring the greater public and company's interests. Management fraud which is involved in accounting manipulation, is a type of fraud where inside people with key positions tend to misrepresent financial statement in using a false positive image about the financial performance of the company to affect the decisions of the financial statement users for the own gains. …show more content…

SAS no.82 (AICPA, 1997) defined financial statement fraud as the intentional and deliberate manipulation or misstatement of the data appearing of the financial statement making it misleading , in order to affect the judgment of investors and users of those financial statement. Financial statement fraud has been tied to the concept management fraud due to the primary role that management plays in providing reliable financial reports ,therefore it's the management responsibility to fairly present and report the financial information affecting

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