BHS427 Module 1 SLP

BHS427 Module 1 SLP Name: Grade Course: Tutor’s Name: (20 July 2011) BHS427 Module 1 SLP Financial costs associated with corporate fraud in the United States. Some years ago, there has been epidemic of corporate frauds especially the fiercest one in the scandal of Enron, WorldCom and many other companies rocked the financial markets. They also made investment accounts and pension plan to be wiped out throwing the employees and employment lines in a disarray (Bologna, 1984). This made the government to respond through coming up with Sarbanes-Oxley Act of 2002 to address this issue of corporate fraudulent. The corporate fraud cause has caused 50 % for example I 2003 according to the pricewaterhouseCoopers. The same report has shown that corporate fraud has led to increase in corruption and bribery where in 2003 rose to 71 percent. This is in pursuit of concealing the fraud cases after fierce rules were put to counter this. The frauds have also come hand in hand with money laundering and misrepresentation of financial statement causing the country to loose a lot of money. Therefore, corporate fraud has made most of the corporate to succumb to economic downturn and in their attempts to minimize losses they may pen themselves to a huge financial risk (Elliot, & Willingham, 1980. This is because they corporate tend to cut down their costs that increase their chances of being victims. Ethical training of employees as an effective means to reduce fraudulent activities The power of educating employees about the ethics practice in the corporate world is varied. However, a good tool can change this vice to ensure that fraud is minimized. However, there has been lots of discussion on how effective this tool can be in the fight against fraud. Fraud in fact is a deception that so happen for personal gain and it is a crime that can be well addresses through ensuring sensitization of people’s moral through ethical training (Bologna, 1999). Lookin...