Accounting and financial frauds!!! need for IFRS!!! Dr. Goyal Meena*, Prof. Johri Deekha** *Professor, Finance, Indira School of Business Studies, Wakad, Pune, Maharashtra India **Assistant Professor, Finance, Indira School of Business Studies, Wakad, Pune, Maharashtra India Online published on 7 August, 2012. Abstract India is growing in all terms, like strong economy, great infrastructure, top businessmen, more number of Indians in Forbes richest people list, technology, education, strong media etc. - all on the positive side and when we look further then surfaces the worrying part and with it comes big scams, big embezzlement, big corruption, etc. With the increasing number of frauds taking place, not only in the Indian Corporate world but also at the International corporate level, it becomes a necessity to ponder on the various aspects of such frauds and take measures to avoid and expose such frauds. With the help of four case studies (two at international level and two at Indian level), this paper has compiled and summarized information which attempts to answer some of the basic questions: Why frauds happen in spite of laws? Why do people fall for fraud? Who is most susceptible to fraud? How can stakeholders be protected? How can fraudsters be caught? What is the impact (implicit & explicit) of fraud? Why there is need of IFRS?
With the help of understanding these case studies, we can find the practical detection, prevention, and policy strategies. It also explains the failure of internal accounting systems. A step in this direction would be to move towards IFRS (International Financial Reporting Standards) as the very purpose of IFRS is that financial statements should reflect true and fair view of the business affairs of the organization. Top |