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    The recent frauds and corporate scandals similar to Merck, AIG, Enron, Worldcom, Tyco, and Imclone what is the potential legal and ethical issues to data analysis organizations. What did the company misuse data to support their decisions? What was the end results, what was the limitations and significance of the data and were their ethical data misuses? hide problem

    © BrainMass Inc. brainmass.com December 15, 2022, 8:03 pm ad1c9bdddf
    https://brainmass.com/business/external-auditing/auditing-269492

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    The response addresses the queries posted in 665 words with references.

    //The responsibilities of the auditors and data analyzing firms towards companies as well as investors are very significant. After seeing the reports from auditors, lenders and investors take decisions. That's why; here we will discuses about the legal and ethical issues for data analyzing organization and auditors.//

    The work of data analyzing firms and auditors is to analyze the company's situation and find out mistakes, faults and discrepancies in the financial statement. The manipulated financial statement deceives to inventors, government, stakeholder, taxation authority and lenders. They should follow ethical practices while analyzing the data of the companies. They should thoroughly check the financial statements with original documents. They should also cross check the documents on which financial statements are based. The manipulation of statements is general now days for getting tax relief and subsidies so, they should keep a look on these issues. It is said that auditors work for stakeholders not for the company management. Auditors should prepare reports on the basis of ...

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    The response addresses the queries posted in 665 words with references.

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