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Internal control problems may have contributed - Tyco Int'l

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Discuss how internal control problems may have contributed to the failure of Tyco International. Describe these problems and their cause. What would you have done differently, if you had been in charge (be specific)?

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Your tutorial is 232words and discusses how internal controls played a part in the Tyco failure. Two suggestions are made for what might have helped to avoid the failure.

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When managements commits a fraud, it is from either overriding internal controls or twisting the financial reporting to look good, get a particular desired result, or to cover the fraud activities so that they are not discovered. When an employee commits fraud, it is usually by exploiting weaknesses in the internal control system.

In the case of Tyco International, management was able to override internal controls or fail to have controls in place at all. For instance, the bad corporate governance ...

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