International companies face many challenges. One such challenge is the corruption that exists in other less developed countries. In these countries, corruption is an accepted part of life. Bribes are paid for activities such as shipping merchandise, building factories and hiring employees. As an accountant for one of these international companies, how would you handle the situation if you were asked to execute payment for a bribe? Is bribery really necessary in order to do business abroad? Why or why not?


Janis Daly is an administrator for a nursing home and was recently charged with fraud. Over the last 5 years, it is claimed that Janis made payments to a shell company for janitorial and maintenance services while at the same time paying another contractor for the same janitorial and maintenance services. Janis either overpaid the contractor for the services or paid them for work they did not perform. The building Janis works in is only 12 years old yet maintenance costs have risen from $850,000 to $6.4 million in just the last 5 years. What type of fraud (or frauds) is Janis engaged in? Is the nursing home at all responsible for the length and or dollar amount of the fraud? Should the nursing home have detected the fraud sooner? If so, how?