Capstone Research Project

Capstone Research Project

GAA P Rules and Fraud Detection

The Generally Accepted Accounting Principles or rules known as Financial Reporting (GAAP) are a set of general rules and standards that guide book to develop benchmarks for the measurement of assets and information of the assets of an economic entity. GAAP are parameters for the preparation of financial statements that is based on uniform methods of accounting technique.

According to GAP rules, all financial information is recorded and reported separately from the personal information of the business owner. A person can have a business and also a house and a car. However, business financial records should not contain information about what properties of the owner. A business exists separately from its owner, so there should separate data for each kind of Asset. Similarly, like in this case the company can not show any extra benefits or pension which is in fact not being paid to the employees. In this case, fraudulent amount of factious employment was given.

The financial statements always refer to economic assets, that is tangible and intangible assets that have economic value and therefore are likely to be valued in monetary terms. Economic Goods can also be called a separate property and property of others.

The going Principle of the GAAP states that the permanence and visibility for the company in the market. The company must not stop their activities, but rather they must continue to operate indefinitely. It implies continuity of the company.

GAAP principle states that a company's asset must be valued at acquisition cost or production as the basic concept of valuation. Also, the fluctuations of the common currency denominator, alterations should not affect the principle expressed, but adjustments will be made necessary to the respective costs, for example to an inflationary phenomenon.

It is a fundamental concept of accounting, asset register that dictates the price paid to acquire them. Unless expressly stated otherwise it is understood that the financial statements are in a "going concern", considering that the concept that informs the aforementioned expression refers to the entire economic body whose personal life is in full force and future projections. However, there are often cases when the cost is overstated or understated to manipulate figures. In this case, the company showed inflated Leases on Technology. This can create trouble for company leading to several problems and cases against the company.

The company is obliged to measure the outcome of the administration from time to time, either for administrative, legal, or financial purposes. While used for this measurement is called the period, which comprises twelve months, and is called the exercise. It is also called accounting period or fiscal accounting year. The research on the financial statements should be subject to a short fiscal period: this will give us a better view of the company for timely decision making in the future. In general, companies have a long life and are in place, and probably the final results of the investment in a company will ...