A recent article in The Economist discusses how to avoid being asked to commit fraud. It can be very uncomfortable if your manager asks you to alter the books or do anything that is unethical. Often there are not only repercussions for committing the fraud (i.e., fines or jail time), but also for not committing the fraud (21% of employees who reported unethical behavior at work said they experienced some form of punishment from their employer). If you refuse to commit a fraud, your manager may choose not to promote you or may even fire you. Rather than refusing to commit a fraud, the best scenario for an employee would be to never be asked to commit a fraud. A study that was done by Dr. Sreedhari Desai (professor at the University of North Carolina at Chapel Hill) found one approach that dissuades managers from asking employees to engage in unethical behavior.
Friday, March 25, 2016
Wednesday, March 23, 2016
News of professional tennis player Maria Sharapova failing a drug test at the Australian Open has spread rapidly, especially since tennis is generally considered a more sophisticated sport, and people don’t usually think of tennis players when they think about athletes that are doping (see the video below of the press conference where Sharapova made the announcement). While Sharapova says that the drug she was taking was a medicine given to her for health reasons that was only just recently banned by WADA (World Anti-Doping Agency), she still takes responsibility for taking it after it became a banned substance. Additionally, this situation has brought to light other instances of potential fraud in professional tennis, including doping and fixing matches.
Tuesday, March 15, 2016
A recent article in The Wall Street Journal discussed the technological improvements among auditing firms (KPMG in particular). KPMG is expected to announce an alliance with IBM to use their artificial-intelligence technology, IBM Watson, which will allow KPMG to audit all of the data for their clients rather than only samples of the data. The technology is not meant to replace human auditors, but will help them know where abnormalities may exist in the client’s books.