Accounting issues: Fraud / Nur Syahira Abu Mansor and Saflina Azis

Accounting issues vary in severity, complexity, and frequency, but their fundamental concept remains consistent. Despite efforts by the Financial Accounting Standards Board (FASB) to make GAAP accounting rules more flexible and less burdensome, stakeholders often disagree with its decisions. These issues encompass a range of preventable accounting aspects that directly impact a company, such as inaccurate financial statements, security risks, outdated standards, and negative audit outcomes. In cases of fraud, accounting issues stem from inadequate internal controls, lack of training on changing regulations, dependence on individuals, and ethical lapses. Fraud related accounting issues may include major financial errors, undetected fraud due to weak controls, misapplication of GAAP standards, regulatory breaches, and cybersecurity threats. Such issues can distort a company's profitability and cash flow and may arise from embezzlement or collusion due to inadequate internal controls.