Overview
Reflect on what you have learned about fraud and cybersecurity in this unit. In your own words, define financial statement fraud. How could businesses prevent it? How could businesses detect it?
What do you think are the differences between perceived pressure that could result in the misappropriation of assets, and perceived pressure that could result in financial statement fraud?
Give examples of both types of pressures.
Finally, what internal controls can help manage and mitigate business risk and IT risk?
Your journal entry must be at least two pages in length. No outside resources are required. APA formatting is not required
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Part 1:
Your roommate is an English major. The roommate’s parents own a chain of ice cream shops located throughout Florida. One day, while waiting for an appointment with an academic advisor, your roommate asks you the following question:
“My parents started their business originally as a partnership. However, after a year or two, they switched over and had the business incorporated. Since then, they complain every year about double taxation. What does that mean? And, if double taxation is so bad, why didn’t they just continue to function as a partnership? They seemed happier before they made this switch.” How would you respond?
Part 2:
Your roommate is an English major. The roommate’s parents own a chain of ice cream shops located throughout Florida. One day, while the two of you are taking a study break, your roommate asks you the following question:
“I was recently looking at the financial statements my parents prepare for their business. I happened to see the statement of cash flows. I studied it more carefully because I was interested in the amount of cash that the business has been making. One of the biggest positive numbers on the entire statement was depreciation expense. It was listed right there under operating activities with a big plus sign. I don’t understand. How are they able to get so much cash from depreciation? I understand how they get cash by selling ice cream, but how does a company get that cash from something called depreciation?” How would you respond?
Defend your answer to both parts with at least one article found in the CSU Online Library and include a reference list at the end of your response.
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Create an informative infographic that explores the major legal corporation structures commonly used in business. This assignment aims to enhance your understanding of different corporate entities and their characteristics.
Include the following in your brochure:
- At least three major corporation structures to compare and contrast
- Definitions and key characteristics of each
- Highlight any specific legal requirements (formation, registration, compliance)
- Pros and cons of each structure from a business perspective
- At least one real-world example or scenario for each structure
At the end of your infographic, include a reference list of sources used to develop the infographic. You must use a minimum of two sources.