January 2013
Intermediate to advanced
688 pages
23h 33m
English
book
Accounting Information Systems: The Processes and Controls, 2nd Edition
by Leslie Turner, Andrea Weickgenannt
Content preview from Accounting Information Systems: The Processes and Controls, 2nd Edition
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
ETHICAL ISSUES RELATED TO REVENUE PROCESSES (STUDY OBJECTIVE 9)
A sad fact of the business and accounting environment is that many deceptions and fraudulent acts relate to revenue measurement and recognition. Many managers or owners succumb to the temptation to inflate (overstate) revenues so that they can make the company's financial performance appear better than it is. Intentional revenue inflation is unethical, and many types of revenue inflation are illegal.
THE REAL WORLD
In the early days of personal computers, one of the manufacturers of hard drives was MiniScribe Corporation. The chief executive officer of MiniScribe, Q.T. Wiles, was convicted of fraud in 1994 and subsequently served 30 months in prison for falsifying revenue. To inflate revenues, Q.T. Wiles came up with a novel idea. He made the employees ship bricks, rather than hard drives, in boxes that were sent to distributors. The company also shipped scrapped parts in boxes that were labeled as hard drives. The company inflated revenue by recording completely fictitious, fraudulent sales of these bricks and scrap materials. In addition to the CEO being sentenced to jail time, the chief financial officer, a CPA, was disciplined by the SEC. The company ultimately failed.4
There are many examples of companies inflating revenue. The MiniScribe example points out an unfortunate truth: If top management is intent on ...
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