Finance Can Falsification of Records really Affect company?

[Mataracy]

Falsification of record can be describe as a way through which an Accountant or manager of the company committed atrocities through by falsify the records to sweet there own pocket.

Some times the Accountant will doctor the records by under casting of Income and overcast expenditure so that they can get money from it.

Embezzlement also start on this act of falsification which can some time destroying the business or even make company to latter wind up.
Some people do not care of checking their records in other to know may be there is perpetrations of fraud in the company. Though there are many business owner who do not border to latter look keenly to the record of the company both the inflows and out flow of income.
Do you think better examination of records is important in an organisation.

 

[Sotherefore]

All these things have a very serious effect in the productivity of a business organisation, whenever there is a fraud in a business it is very important that these things must be settle out with immediate effect because if it continues further it is possible that such an atrocity can affect the productivity of a business organisation.

 

[AfriPeeps Official]

Sure it can, there are many examples of companies that eventually fold up due to similar issues, even there was a time a bank close me was shut down just because the manager of the bank falsified some documents and have out a huge sum of money to a private business owner.

 

[btaliat]

Falsification is always done to cover wrong doing. There is no good company that can falsify any good result or right figure. Involving in this is a way of presenting the company as a company that cannot be trusted when it comes to some issues they are trying to falsify.

 

[Chibson]

This is one of the reasons it is important for people to employ people with integrity and proper knowledge. if you employ someone who is criminally minded then your business will definitely go into shambles. a lot of businesses have crumbled because of this kind of behaviours by business managers or accountants.

 

[Yusra3]

Distortion of financial records is serious risk to the company, the practices must be stopped for the sake of organization. It chisels out the credibility with shareholders, creditors, and the regulatory committee which might lead to legal charges, fines, and even criminal suits. Wrong books not only bring inaccuracy to decision-making, they also affect performance metrics, and falsehood misleads. They also enable fraud. The workers might be laid off but in extreme cases a company director could face many years in jail. Failure to disclose deficiencies not only destroys the organization's reputation, market value, and chances for the future but also affects the company's ability to do business with many of its partners. Being highly concerned about accounting compliance and transparency is imperative for operational sustainability.