The Case Of Fraud And Wrongdoings - 2029 Words

Abstract This paper will be taking a shallow dive into the specific case of fraud and wrongdoings by the auditors of Live Entertainment Corporation of Canada, Inc., also known as Livent. I use the word shallow because an in-depth study encompasses horizons beyond what can be written in this paper. Fraud is a very broad topic generally, and this paper seeks to touch on a few regions of this topic and the role auditors’ play. I will be taking a look into Livent Inc. and the fraudulent scandals that terminated the company’s reputation and I will be discussing the role of their auditors, Deloitte and Touche, during this period. In the course of this research paper, several significant questions will be raised and I will try my best to answer them with supporting reasons. Some questions I want to address are as follows: Were there red flags visible which should have alerted the auditors (roused their professional skepticism) that all was not well in the company? Were there audit procedures the auditors might have carried out that might have alerted the auditors? If Livent lied to Deloitte Touche, does that excuse the auditor of liability to the firm? Suing the Auditors, does this go against the norm of corporate law? Introduction The meaning of ‘fraud’ We must first understand the meaning of ‘fraud’ and some motivations behind the commissions of such acts. I want to first start by defining fraud to get a deeper understanding of what this paper would be talking about.Show MoreRelatedThe Oversight And Authority Over Public Accounting Firms769 Words   |  4 Pagesrather than public interest since there is no law enforcing them. The routine inspection for public accounting firms and the threat of any wrongdoing publication will keep the firms to act at their best behavior. The inspection will catch their wrongful doings before it is too late to recover. 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