49.

Management Fraud- may involve falsifying financial information, such as

transactions, trades and accounting entries in order to benefit the perpetrator of
the crime. Insider trading, bribes, back dating of stock options and misuse of
company property for personal gain are also fraudulent. (Source:
Reference,.com)
50. Creative Accounting- consists of accounting practices that follow required laws
and regulations, but deviate from what those standards intend to accomplish.
Creative accounting capitalizes on loopholes in the accounting standards to
falsely portray a better image of the company. Although creative accounting
practices are legal, the loopholes they exploit are often reformed to prevent such
behaviors. (Source: Investopedia)
51. Accounting Information System- is the collection, storage and processing of
financial and accounting data used by internal users to report information to
investors, creditors and tax authorities. An accounting information system is
generally a computer-based method for tracking accounting activity in
conjunction with information technology resources. An accounting information
system combines traditional accounting practices, such as the Generally
Accepted Accounting Principles (GAAP), with modern information technology
resources. (Source: Investopedia)
52. 2010 FRIA (Financial Rehabilitation and Insolvency Act)- an act providing for
the rehabilitation or liquidation of financially distressed enterprises and
individuals. (Source: lawphil.net)
53. 2013 Rules of Procedures on Corporate Rehabilitation (under the 2010
FRIA) (Source: source.gosupra.com)
Rule 1: Coverage and General Provisions
Rule 2: Court-supervised Rehabilitation
A. Initiation of Proceedings
B. Provisions Common to Voluntary and Involuntary Proceedings/action
on Petition and Commencement of Proceedings
C. the Rehabilitation Receiver, Management Committee, and Creditor's
Committee
 D. Determination of Claims
E. Use, Preservation and Disposal of Assets and Treatment of Assets
and Claims After Commencement Date
F. Avoidance Proceedings
G. Treatment of Secured Creditors
H. Administration of Proceedings
I. Termination of Proceedings

Rule 3: Pre-negotiated Rehabilitation

Rule 4: Out-of-court or Informal Restructuring Agreement or Rehabilitation

Plan

Rule 5: Cross-border Insolvency Proceedings

Rule 6: Procedural Remedies

Rule 7: Miscellaneous and Final Provisions

54. Big “G” (Macro) Governance- Thepolicy‐makinglayer. It is the abstraction,

concept or larger purpose. It’s the ideas, concepts and purposes which those
institutions were created to serve, which, if you’d like, you can think about also an
input (although that’s a not perfect comparison). This could be the idea, for
example, that governments should provide objective and fair mediation spaces
based on regional and national social values and legal principle to mitigate and
resolve conflicts over property between or among citizens. (Source:
damaindiana.org & The Art of Governance)
55. Corporate or Little “g” Governance- Thecontrolslayer. It represents the
physical institutions, point of interaction or in a workflow perspective the “output”
of government, including laws, rules, employees, budgets meetings and
buildings. A court, which hears the case of one community member suing
another over a disagreement on property lines, is an example of “government.”
(Source: damaindiana.org & The Art of Governance)
56. Risk Management- is the process of identification, analysis and acceptance or
mitigation of uncertainty in investment decisions. Essentially, risk management
 occurs when an investor or fund manager analyzes and attempts to quantify the
potential for losses in an investment and then takes the appropriate action (or
inaction) given his investment objectives and risk tolerance. (Source:
Investopedia)
57. Conflicts of Interest- occurs when a corporation or person becomes unreliable
because of a clash between personal and professional affairs. Such a conflict
occurs when a company or individual has a vested interest, such as money,
status, knowledge or reputation, which puts into question whether they can be
unbiased in their decision-making. When such a situation arises, the party is
usually asked to remove themselves, and it is often legally required of them.
(Source: Investopedia)
a. IFAC (International Federation of Accountants): is the global organization
for the accountancy profession dedicated to serving the public interest by
strengthening the profession and contributing to the development of strong
international economies. A professional accountant in public practice may be
faced with a conflict of interest when performing a professional service. A
conflict of interest creates a threat to objectivity and may create threats to the
other fundamental principles. (Source: ifac.org)
b. OECD (The Organisation for Economic Co-operation and Development):
is a group of 34 member countries that discuss and develop economic and
social policy. OECD members are democratic countries that support free
market economies. (Source: Investopedia) OECD helps countries modernise
their approach for managing conflict of interest by mapping “at risk” areas and
positions within the public service. It identified a set core principles and
standards for the design and implementation of conflict-of-interest policies:
The Guidelines for Managing Conflict of Interest in the Public Service.
(Source: oecd.org)
c. ENRON Scandal & Bankruptcy: The Fall of a Wall Street Darling- he story
of a company that reached dramatic heights, only to face a dizzying fall. Its
collapse affected thousands of employees and shook Wall Street to its core.
At Enron's peak, its shares were worth $90.75; when it declared bankruptcy
 on December 2, 2001, they were trading at $0.26. To this day, many wonder
how such a powerful business, at the time one of the largest companies in the
U.S, disintegrated almost overnight and how it managed to fool the regulators
with fake holdings and off-the-books accounting for so long. (Source:
Investopedia)
58. Corruption- is dishonest behavior by those in positions of power, such as
managers or government officials. Corruption can include giving or accepting
bribes or inappropriate gifts, double dealing, under-the-table transactions,
manipulating elections, diverting funds, laundering money and defrauding
investors. (Source: Investopedia)
59. Economic Cycles- is the natural fluctuation of the economy between periods of
expansion (growth) and contraction (recession). Four stages: (Source:
Investopedia)
a. Expansion- the economy experiences relatively rapid growth, interest rates
tend to be low, production increases and inflationary pressures build.
b. Peak- is reached when growth hits its maximum output. Peak growth typically
creates some imbalances in the economy that need to be corrected.
c. This correction occurs through a period of contraction when growth slows,
employment falls and prices stagnate.
d. Trough- is reached when the economy hits a low point in growth from which a
recovery can begin.
60. Globalization- represents the global integration of international trade,
investment, information technology and cultures. (Source: Investopedia)
61. Litigation Support- provides assistance of an accounting nature in a matter
involving existing or pending litigation. It deals primarily with issues related to the
quantification of economic damages. A typical litigation support assignment
would be calculating the economic loss resulting from a breach of contract.
(Source: forensicaccounting.com)
62. Piracy of Intellectual Property- refers to the unauthorized use, reproduction,
and/or distribution of protected material such as computer software, video
games, music, or movies. Piracy has become an increasing concern in recent
 years because of the rise of the Internet and the speed with which copyrighted
material can be distributed globally to a large number of people. (Source: SAGE
Knowledge)
63. Supply chain constraints, restraints- core idea in TOC is that every system
such as profit-making firms must have at least one constraint that limits the
system from getting more of whatever it strives for and consequently determines
the output of the system (Noreen et al., 1995).
64. Industry consolidation- is a situation in which separate companies become
one. It is sometimes described as a merger, although technically these are two
different situations. In a merger, a new business is formed when one company
absorbs the other; in a consolidation, companies join forces on relatively equal
terms to form one new company. However, the two terms are often used
interchangeably. (Source: Bizfluent)