Summary

The recording is about how to prevent creative accounting by a

financial services specialist. First of all, the author gives some background
information about creative accounting, which is a term used to describe
bookkeeping and accounting practices that involve positioning assets to
make things look different than they really are. Second, to show how
damaging creative accounting is, he mentions Abraham brough Loft book
which is called unaccountable accounting. Lastly, to avoid creative
accounting, the professional recommends making sure the accountant or a
CPA fulfils his/her duty and everything in the report is black and white.

Lesson from the recording

From the recording, we have learnt the definition of creative
accounting and how to prevent it. Creative accounting is a term used to
describe accounting and financial practices that involve positioning assets to
make things look different than they actually are. And the best way to
prevent creative accounting is to clarify everything in the financial report.

Useful phrase
- Pull the wool over somebody’s eyes: to deceive someone in order to
prevent them from discovering something
- Every now and then: sometime but not often
Summary
The recording is about three ways that companies are doing financial
statement fraud. One of those phrases is aggressive accounting, so
management says they are applying accounting rules in a way that improves
financial statements, and their application of those accounting rules is in line
with GAAP rules for individual items.  A third way is smoothing executives
minimise financial statement fraud, balancing their pros and cons and their
profits to present a more consistent picture of operating results. 
Lesson from the recording
From the recording, there are something we have learnt:
- Identify overall characteristics of fraud, fraud risk factors, and the impact
on potential financial misstatements
- Identify appropriate responses to fraud risk assessments
- Recognize real-world examples involving financial statement
misrepresentations
Useful phrase
- In accordance with: correspondence
- Aggressive accounting: refers to accounting practices that are designed to
overstate a company's financial performance
- Legitimating tactics occur when the appeal is based on legitimate or
positional power. “By the power vested in me…”: This tactic relies upon
compliance with rules, laws, and regulations.
Summary
The recording is about Worldcom Scandal. The CEO of Worldcom has
amassed a slew of progressively huge telecommunications firms. Worldcom
is responsible for approximately half of all Internet and data
communications in the United States, and it controls a third of all data
cables. The industry, however, swiftly fell out of favor. Worldcom has no
choice but to rely on the leadership of other businesses. Beginning in 1990,
the corporation began to use somewhat difficult accounting procedures in
categorizing operational expenditures as long-term capital investments and
lowering reserves as income, all under the guidance of Sullivan. Worldcom
has amassed a wealth of $11 billion as a result of this. The internal audit team
found the mismatch after Ebbers resigned, and the SEC launched an
investigation. With $107 billion in assets, WorldCom filed for bankruptcy.
Both Ebbers and Sullivan were charged with and convicted of many charges
of fraud.

Lesson from the recording

From this recording, we have learned the consequences of accounting
fraud. We will be convicted if we have some counts of fraud and breach of
securities laws.

Useful phrase

- Charged with: To officially accuse one of a crime.

- Be sentenced to: impose a particular legal penalty upon one who is found
guilty of a crime.

- Merge (something) with (something else): to join, unit or blend in with

someone or something else.