ACCT5029 Ethics And Governance: Frauds Or Mismanagement In ANZ Bank Assessment Answer

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Question :

ACCT5029 Ethics and Governance 

Presentation and Report

This assignment is worth 20%% of your final mark and includes a group presentation by a group of either 3 or 4 students. You may select your own group but all group members must be the same in tutorial. You group is required to do in-class presentation on recent banking financial industry related scandals from the perceptive of ethics and governance AND submit a written report at the same time as the presentation and the sot copy of written report via turnitin on blackboard.

Select a major corporate scandals in Banking Industry and report the outcome paying attention in the following issues:

1. Personal and professional moral qualities which are absent during frauds.

2. Impact of local culture on the occurrence of frauds or mismanagement

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Answer :


Personal and professional moral qualities which are absent during frauds:

Australia has developed a cartel charge against the third biggest bank of Australia that is ANZ and the underwriter’s bank such as Citigroup and Deutsche bank due $2.3 billion share issues (Duran and Kaye, 2019). The pending charge can carry huge fines along with the 10-year imprisonment. It is alleged against the ANZ that they are concerned about all the conducts. The absence of the professional and personal qualities that creates a fraud or mismanagement is to be proactive. Establishing and maintaining internal controls are highly effective in preventing and detecting frauds. Setting a tone at the top of a company avoids any unethical behaviour (Fernyhough, 2018). Ineffective checking of the background of the employees during their hiring process increases the chances of frauds. 

This situation is mainly applicable to the banking sectors. If the banks hire a person without effectively checking the employment history and references of the person, then it creates fraudulent behaviour in the near organisation. Developing a strict policy of fraud and making the employees aware of the deceptive behaviour always lowers the chances of the scams. Therefore, ineffective focus to develop these types of systems can increase fraudulent behaviour. Moreover, offering better training to the employees in preventing frauds is highly essential to avoid scams (Fernyhough, 2018). Regular and routine audits need to be conducted on the higher risk areas such as in the inventory or financial department (Islam et al. 2015). This is because it helps in reducing the possibilities if frauds by immediate identification. Not involving a certified fraud examiner immediately after suspecting a fraud increases the chances of fraud.

Impact of local culture on the occurrence of frauds or mismanagement:

Corporate culture refers to the shared beliefs and values of the employee of a firm. Therefore, corporate corruption culture is calculated as the average attitude of corruption for all the insiders which also involve the directors and officers. Consequently, it can be said from the fact that if employees of an organisation tend to corruption, then it creates the crime in overall the organisation. It can be said that the corruption spreads in all through an organisation if it has happened in a particular level. The main reason behind it is corruption in a specific functional department motivates the other employees in involving in the crime which increases the chances of fraud in an organisation (McGowan, 2018). ANZ bank has faced the criminal cartel charge due to their corrupted behaviour. The allegation of fraud involves the third largest bank of Australia which is ANZ along with two other companies and a number of individuals. For discussing this fact, it can be said that corruption in one organisation has influenced the culture of other organisation as they are performing with each other. This fact has created the chances of corruption on every level. This fact has organized these issues which not only creates suffering for ANZ, but it has also destroy the brand image of the organisation. 


It is recommended to conduct regular audits and checks ensuring a 360-degree monitoring and reporting of any possible risks related to inventory or financial department. Such a regular process will help in reduction of the fraud possibilities thereby ensuring timely identification and taking steps to rectify the issues. Furthermore, it is recommended to develop and maintain transparent lines of communication to create a workplace culture of trust and mutual understanding. This can be ensured through formal as well as informal lines of communication. A focus on lines of communication will help in easy sharing of knowledge and ideas thereby developing trust between managers and employees and reducing the chances of corruption through a transformation in workplace culture.