Free The Fair Credit Reporting Act Essay Example
The article titled “The Fair Credit Reporting Act” written by Carl Pacini and Katherine Barker and published in the journal ‘The CPA Journal’ in the year 2010 gives an account of the Fair Credit Reporting Act on account of the increasing employee fraud in the recent years. The investigation and findings published in the article are a good source of opportunity for forensic accountants to be familiar with the acts of deceit. According to the article, workplace fraud results in a loss of over $750 billion to the businesses of the United States . Surveys have concluded that over 40 percent of the job resumes do not present the accurate details about education, qualifications and previous employment details. The Fair Credit Reporting Act enables to minimize the risk of loss in various events, such as employment decisions, credit extension and insurance plans . The authors state the act as a measure to enhance privacy and protection of consumers.
The article is one of the useful resources as it not only offers the background history of the Fair Credit Reporting Act, but also provides detailed information about the consequences of violation of the act as well as the measures taken by the company to ensure the prevention of risks. The research conducted in the article creates awareness in the employees about the restrictions and limitations of the act in addition to the care one should take while handing over the background investigations to third parties. The article also provides a brief account of various cases that relate to the violation of the Fair Credit Reporting Act, which led to the severe consequences suffered by the organizations for the mistakes committed by the third parties in neglecting the privacy of employees . Thus, the article gives ample information about the Fair Credit Reporting Act and the measures that would save the businesses from incurring huge losses.
Pacini, C., & Barker, K. (2010). The Fair Credit Reporting Act. The CPA Journal , Vol. 80, No. 12 .