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If the tone of management and/or corporate is laidback then the likelihood of fraudulent reporting is higher. The Report recommends that the companies incorporate a framework which includes; identifying, understanding, and assessing the risk of fraudulent financial reporting and to design and implement internal controls. Internal controls are used for preventing and detecting fraud.
In 2002, CEO of Tyco International, Ltd. (Tyco), Dennis Kozloski and Mark H. Swartz, chief lieutenant, were charged with stealing $150 million and selling company shares for $430 million ultimately inflating the value of the stock...
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