Valeant pharmaceuticals fraud

Author:

Belanger Maude,Hounwanou Dossa Charles,Menah Koffi Sanvee,Sauvageau Isabelle,Smaili Nadia

Abstract

Purpose The aim of this study is to examine the patterns of fraud present in Valeant’s 2014 and 2015 financial statements and determine through a risk management analysis whether these frauds could have been prevented. This analysis provides the opportunity to more effectively prevent financial statement fraud. Design/methodology/approach Data were collected from Valeant pharmaceuticals annual reports, financial statements reports and financial authority documentation. Based on these documents, this paper analyzes the different fraud schemes and investigate whether fraud could have been detected earlier by governance actors. In particular, this paper examines the firm’s financial statements three years before the fraud was detected by the Securities and Exchange Commission. Findings The analysis of financial statements reveals few clues and no alarming red flags three years before detection of the fraud. However, financial statement analyses were complex because of the many acquisitions the firm made in the years before. Originality/value This paper aims to contribute to the literature on fraud by investigating a case of financial statement fraud.

Publisher

Emerald

Reference34 articles.

1. Financial reporting fraud and other forms of misconduct: a multidisciplinary review of the literature;Review of Accounting Studies,2018

2. Association of Certified Fraud Examiners (ACFE) (2022), “Report to the nations on occupational fraud and abuse”, Austin, TX: Association of Certified Fraud Examiners, available at: www.acfe.com/report-to-the-nations/2022/

3. Bausch Health (2018), “Valeant will become Bausch Health Companies Inc.”, available at: https://ir.bauschhealth.com/news-releases/2018/05-08-2018-120255538

4. Beasley, M.S., Carcello, J.V., Hermanson, D. and Neal, T.L. (2010), “Fraudulent Financial Reporting 1998-2007”. New York, NY: Committee of Sponsoring Organization of the Treadway Commission (COSO)

5. Bosanac, A. (2016), “Why the trouble at Valeant starts with its board”, Canadian Business, available at: www.advisor.ca/investments/market-insights/why-the-trouble-at-valeant-starts-with-its-board-of-directors/#:∼:text=But%20the%20role%20of%20the%20company%E2%80%99s%20board%20of,and%20may%20have%20contributed%20to%20Valeant%E2%80%99s%20current%20woes

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3