Financial Scandals and Environmental Disasters

Corporate social responsibility has become an important issue due to economic scandal and environmental disasters and it is a strategy that goes beyond profit maximization from focusing on the interests of employees to improving communities and companies To show ethics and responsible actions. An environment to minimize damage caused by improving media coverage and transparency. Christian Aid (2004) argued that corporate social responsibility is an inappropriate response to the large impact of multinational companies using corporate social responsibility to hide their impact ing.

Identification of major misstatement risk areas During the past 20 years, some of the most serious accounting scandals have occurred in history. These financial disasters resulted in billions of dollars of losses. In this article we will focus on the top 10 largest accounting scandals in the near future. Many of these scandals are due to excessive greed to this situation. A potential new customer has found you and asked you to be his auditor. The client's former auditor resigned and the owner / manager of the company was known for its "darkness". Companies need to raise funds for ongoing operations through audits. What's your problem? What should you be careful / cautious about?

An accounting scandal is a business scandal caused by intentional manipulation of financial statements by companies that disclose financial irregularities or officials trusted by the government. Such misconduct may include misuse or misunderstanding of funds, exaggeration of income, underestimation of costs, exaggeration of corporate asset value, or underestimation of the complexity of liabilities. It involves employees, accounts or the company itself, misleading investors and shareholders

Let's take a mass emission scandal as an example. They operate on their own to fool the public and their own customers. When in trouble, it was a financial and public relations disaster that caused them to lose 25 billion dollars and their stock price dropped 50%, and their brand lost a lot of trust. Their reputation has been tested and they pay high price for it. Proof of reputation depends on the risk that a lot of loss will occur to trust the network. PoR adds a layer of protection that may not be present, it allows the company to work together to keep each other honest. Imagine if Volkswagen worked with Ford, Toyota and other companies to verify and verify their emissions tests. Volkswagen rarely fakes the system when competitors test each other's cars.