Research Paper on:
Financial Institutions and Their Financial Problems

Unformatted Sample Text from the Research Paper:
others. While Merrill Lynch and other financial institutions may not be doing anything in error in their accounting and finance departments, nonetheless the bad reputation is spreading throughout the  industry and causing a downward turn in finances all the same. By keeping a healthy and informed look at the true income level of any given corporation, it is evident  that much fraud can be discovered before it is too late. While this was not true in the case of Enron, the evidence has shown that not only must  accountants be trained in this endeavor, they must know what to look for. What may appear to be steadily rising income can instead be the forecasting of disaster.  For a rising income with dropping cash flow can often only mean disaster is just around the corner. As technology grows at a rapid pace, the ability to defraud  grows just as rapidly. With the advent of income recognition training, forensic accountants can forestall this growing concern (Scwartz, 1999). AUDITING TO DETECT ACCOUNT MANIPULATION Income recognition procedures  are only now coming to the forefront in accounting practices. However, as is quite evident, this has been long overdue and is an important addition to the bottom line  in any accounting training. By investigating the financial details in corporate accounting practices such as at Merrill Lynch, Chase, and Citicorp through due diligence reviews, traditional investigations and otherwise investigating  corporate under performance, forensic accountants can come in and perform compliance reviews and thereby help redesign internal controls. In this age of acquisitions and mergers, corporate fraud and white-collar crime,  there must be a way to track income which gets figuratively swept under the carpet when the auditors come through. One way to discover these hidden assets is through