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Need an argumentative essay on Fraud : Tyco International Ltd. Needs to be 2 pages. Please no plagiarism.The top management that was made up of Dennis Kozlowski, the executive officer, and Mark H. Swa
Need an argumentative essay on Fraud : Tyco International Ltd. Needs to be 2 pages. Please no plagiarism.
The top management that was made up of Dennis Kozlowski, the executive officer, and Mark H. Swartz, the chief financial officer had the power and authority to influence decisions in the organization. Their decisions to inflate reports were implemented with immediate effect (Albrecht et al 78).
Given the power of the top management, junior managers and officers in the firm were compromised and could not execute their internal control duties effectively. Working under pressure from the top management (fraudsters), they provided a poor financial management oversight to the entire company. They observed orders as they came such that formulation of schemes to inflate income for the company’s security subsidiary and its suppliers. Given that junior managers were presented with an opportunity to steal, they altered the income statements not only for the fraudsters but also for their benefits as they also received incentives for doing so. Lastly, they had the rationalization that if the top management is fraudulent, they could also become fraudulent (Deloitte Development LLC 3).
There are various types of fraud cases that could be reported in various organizations. However, the type of fraud that was common at Tyco International was in all categories of fraud. To begin with was asset misappropriation whereby the management through its chief financial officer and managers altered payroll while inflating bonuses and benefits of the top management. The fraud of financial statements occurred in the organization as the fraudsters altered income statements such as those of their security subsidiaries. Financial reports were inflated to include the bonuses that the managers were getting while painting the false picture of the firm to the public. .
