Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users. Economic events are activities related to the production and distribution of goods and services in an organization. Yet recently, many accounting scandals, questionable bankruptcies, and overall mistrust of financial reporting procedures have affected the accounting profession as so many new accounting irregularities have taken place. The definition of 'irregularity' in Structural Funds terms is very wide and includes any administrative or financial mismanagement that comes about either by act or by omission whether or not there is an actual loss of funds. Accounting irregularities reported by Xerox, Enron, Global Crossing and WorldCom have raised the general awareness of accounting practices involving the recognition of revenues and profits.
Recently, the issue that rises upon with Xerox is to do with accounting irregularities. …
