Research Paper on:
Analysis of Case Study for Internal Auditing

Unformatted Sample Text from the Research Paper:
noticed that several bills that a company created were misdated. After speaking to appropriate personnel, Lloyd learns that the bills were purposefully misdated as they are tied into a  complex incentive program for sales associates (2003). While Alison Lloyd ponders the situation, she remembers the IA code of ethics that request "honesty, objectivity, and diligence" but also loyalty  to the employer (2003). Clearly, the misdating of bills has created a situation where an incentive is made, and it seems that production is up as a result. Alison thinks  that in the end, no one is really getting hurt (2003). At the same time it is an improper or illegal activity (2003). What should she do? Clearly, while misdating  invoices seem to be relatively harmless, they clearly violate law in respect to taxation requirements and things of that nature. By misdating bills, in order to create a false situation,  the firm probably shuffles the tax burden from one fiscal year to another. That is merely one problem with the practice, but it is probably the most important. Another significant  problem is that if the company is a public company, then figures may be misreported to stock holders as well. If for example the misreporting makes the company look better  than the position really is--for example in terms of receivables--then the company is committing fraud and this is another serious matter. In a real life situation, Langston Corporation had  been doing something similar. The firm had been booking customer sales prematurely (Arzoumanian, 2001). Authors go on to explain that this was going on for some time and one whistle  blower lost her job because of it (2001). In the case study, there are suggestions that the practice had gotten somewhat involved and there were concerns about how far they