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A sale is a sale, and a profit is a profit, right? Not always. While an organization's financial statements should fully and transparently reflect the organization's actual financial situation, sometimes they do not. Sometimes there is intentional deception or fraud. Yet, even when an organization uses legal and accepted accounting practices, financial statements may fail to present risks or explain unusual costs, profits, or assumptions.
To prepare for this Discussion, think about a time in your professional experience when a decision was made based on inaccurate financial information or unethical behavior resulting in fraudulent financial information. If you do not have professional experience directly related to accounting and decision making, research a situation where inaccurate or fraudulent financial information was provided by a company. Consider the outcomes of utilizing fraudulent financial information for decision making and research how to avoid such situations.
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