Discuss ways financial statement fraud can be committed

Reference no: EM133416144

Assignment:

Workplace LTD is a co-working company that saw its market share eroded in the UK in the early 2000s because of foreign competition. The management, to cash in on a compensation scheme that would give them £200 million pounds if Workplace 's share rose to more than £81 pounds per share, developed a scheme to artificially increase revenue. First, they recorded sales of goods and services that did not occur. Second, they recognised revenue at the wrong time, and they also artificially inflated and altered invoices of legitimate customers.

To settle charges that included fraud, the Financial Conduct Authority required that Workplace LTD pay a £400 million-pound civil penalty - at that time, the largest ever by a company for financial reporting violations. The Financial Conduct Authority also required that Workplace LTD restate its financial statements for the years 2007 to 2015.

1. In the case of Workplace's fraudulent scheme, what are the likely costs/prices, associated with financial statement fraud?

2. Identify and critically discuss at least three ways financial statement fraud can be committed.

Reference no: EM133416144

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