Research proposal in South Australia Example | Topics and Well Written Essays - 1500 words

In South Australia - Research Proposal Example During the first quarter of 2015, K&S Corporation had encountered a major problem regarding corporate fraudulent. The Victorian Police had charged two of the former employees for misappropriation of funds during the period 2007 to 2014 (Changarathil, 2015; Evans, 2015). The company was subject to fraudulent misappropriation of about $7.1 million during the above mentioned period (Changarathil, 2015). This business issue has forced the company to undergo legal charges and it has even taken legal action against KPMG, which was its external auditor. Hence, this business issue will be discussed in the report. The reason for selecting the particular topic is that financial fraud had affected a number of companies during the financial crisis period. Hence, a report will be prepared based on the business issue that is encountered by K&S Corporation. Corporate financial fraud had gained attention in the past few decades (Srinivasan, 2005). It had contributed towards financial crisis that affected the global economy during the period 2007-2008 (Blanton, 2012). It is observed that a number of regulations had failed to generate any positive result in combating against the financial fraud that took place within the private and public companies (Agrawal and Chadha, 2005). The fraudulent activities had raised concern regarding the effectiveness of the corporate governance of the companies. According to Srinivasan (2005), the fraudulent activities undertaken by the companies had not only affected the internal business operation but also created great impact on interest of the shareholders. The stakeholders, which include the shareholders, employees and general public, are affected by the decreasing trend in the sales revenue over the years as the profit declined subsequently. The decrease in profit of the companies affected the dividen d per share that is offered on the investment amount to the investors or shareholders (Agrawal and Chadha, 2005). Hence, the