MF Global Research Paper Example | Topics and Well Written Essays - 1250 words

MF Global - Research Paper ExampleThe executives by the end of that month do it official that over 700 million USD had been transferred. They, however, could not pay back this upper-case letter with their revenue making it plummet into more debt. At the end of the liquidation period, customers of MF Global made losses that totalled over 1.6 billion dollars, and a majority have not received their funds process today. Difference between conducting pseudo and pecuniary audit Audits are done to ensure the smooth ladder of operations. They may be done after some time as per the nerves request, as in the case of financial auditing. Furthermore, they may be arbitrary and without warning, as in the case of fraud auditing. There are different types of audits, carried out for different purposes. There are reasons that surround each of these audits. unmatchable main reason is the accuracy of financial information in the organization. This is one reason why financial audits are carri ed out, and they can be done by a qualified, independent party or governance unit. Fraud auditing is often done to discover some of the hidden figures in the financial data of an organization (Hagan, 2012). This means that, outside parties may be brought in to conduct a fraud audit, but native auditors of an organization may be responsible for financial auditing. ... If there is the confirmation of fraud, serious legal ramifications may result (Hagan, 2012). There must be a level of responsibility for the auditing firm in some(prenominal) cases. If there are any financial discrepancies in the financial departments or operations, it is up to them to disclose this information. This may lead to the saving of capital that would have otherwise been lost in data. Fraud auditing may regard a little more time and effort to identify what information may be lose that is crucial in the financial docket. A code of ethics needs to guide all the parties involve to ensure their tasks are car ried out accordingly. The obligation of corporate chief operating officers to shareholders and employees about the firms financial activeness The growth of an organization means that the CEO may have a daunting task of property an eye on everything that goes on in the firm. They must delegate some of the duties to subordinates. This helps in ensuring that there is a chain of command that is followed before getting to the top. However, they may not have full control over what subordinates may do, so it is up to them to ensure all matters relating to the financial sectors of the firm are reported instantly to them. The shareholders of the organization are the most crucial part of the firm. CEOs should be the voice of the organization and any financial activity going on should be reported to the people involved (Hagan, 2012). The CEO needs to tell the shareholders of the people in charge of the activities, and what they need to do if they have any complaints or suggestions. As CEO, it is ones job to understand what goes on in the firm in