Reputation Impact From Fraud

Reputation Impact From Fraud Stakeholders beware.  A declining reputation can have a significant impact on an organization.  Just two and a half years after the initial public offering (IPO) of Basin Water, Inc., they were forced to issue a press release that would prove to be the beginning of the end.  The company was defunct within one year of the initial press release which indicated a potential problem involving the operational risk of financial statement fraud pertaining to revenue recognition.  This is merely one example where 72% of Securities and Exchange Commission (SEC) investigations in fiscal year 2010 identified deficiencies with 42% resulting in “significant findings”.   When those issues are… Read More

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