Annotated Bibliography For Fraud

Appendix A.2 also lists several factors that could provide opportunities for management/employees to commit fraud. One factor that could lead to fraud is if, “There is ineffective monitoring of management as a result of: domination of management by a single person or small group without compensating controls.” The auditors should have taken notice of the lack of controls and segregation of duties with respect to Phar-Mor’s

With the advent in technology there has also been a steep increase in the crime rate. These crimes can be closely related to the graph database model. Usually the crimes have a number of sources from which they can start. These sources can be considered as the nodes of the graph. Usually these speculations lead to one or more paths which further add to the case. These are connected by edges leading to newer nodes. Thus forming a graph. The greatest similarity between the two involves eliminating formation of huge relational database. This involves the first step towards the construction of the graph database.

Cases of fraud have been increasing over the years, and different agencies and authorities that have the task of subduing fraud have to get involved and put a stop to it. In the instance of which fraud has been uncovered, it is crucial to be aware of the red flags that were present in relation to fraud and associate them to the factors related to the fraud risk assessment. As Troy Gillard states in the Rd news magazine, a man that broke free after being acknowledged as suspicious when he wanted to take a loan out at the Cash Canada using a stolen ID amongst other official documents that had been stolen. It seemed that the ID and the other documents

(TCO 5) Fraud is an intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage to that party. In our readings and discussions we have seen several examples of fraud in business. Using that experience (1) provide an example of a common fraudulent practice in business with an explanation of how the practice works and (2) name and describe each of the elements of the Fraud Triangle.

Internal fraud consists in “a type of fraud that is committed by an individual against an organization. [Furthermore], a perpetrator of fraud engages in activities that are designed to defraud, misappropriate property, or circumvent the regulations, law, or policies of a company”[8]. Not only has the incidence of internal fraud increased in frequency because of the availability of sensitive information such as client details or confidential business documents; moreover, this type of fraud is found in various types of organizations, ranging from corporations, public service institutions and financial institutions. Our analysis will concentrate on the most common and prolific types of internal fraud, namely identity theft, insider trading, loan fraud and wire fraud. Interestingly, PriceWaterhouseCooper conducted a survey that revealed that the “demographics of a typical fraudster are as follows: males (85% of cases), 31-50 years (72% of cases), reached high-school level (50%), Bachelor’s or post graduate degree (50%) and middle or senior management (52%)”[9].

Cash is such an important current asset to a business, especially for the every day running of it, so ready access to cash is crucial. Therefore, every company must utilize safeguards to protect and manage their cash. An alarming statistic in one of The National Restaurant Association’s (NRA) reports shows that employee theft cost $8.5B to its members in 2007 – the equivalent of 4% of food sales. Furthermore, only 10% of employees do not commit fraud in any situation, while 5% do commit fraud, and the other 85% will actually consider

In fraud committed against organizations, the victim of fraud is the employee’s organization. In frauds committed on behalf of an organization, executives usually are involved in some type of financial statement fraud; typically, to make the company’s reported financial results appear better than they actually are. In this second case, the victims are investors in the company’s stock. A third way to classify frauds is via the use of the ACFE’s occupational fraud definition, “the use of one’s occupation for personnel enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets” (ACFE, 2010). The ACFE includes three major categories of occupational fraud: asset misappropriations involves the theft or misuse of the organization’s assets, corruption involves the wrongful use of influence in a business transaction in order to procure benefits contrary to their duty to their employer, and fraudulent financial statements involving falsification of an organization’s financial statements for personal gain.

Fraud deterrence occurs in several stages, and the key is to know that prevention is not to same as deterrence. First is the impact of controls

In 2008, Expanded taking information offense to any private computer system within the United States (i.e. the outer reach of the Commerce Clause). Expanded extortion offense to cover threats of taking information and demands following damage. Increased penalties. Added criminal

There are various forms of cash fraud. One of the common schemes is cash larceny. Cash larceny refers to employees intentionally taking away cash from their employer without the employer’s knowledge and consent (Wells, 2014). Employees who have direct access to cash are more likely to commit cash larceny (Wells, 2014). Cash larceny is more likely to occur if there are weak internal controls in an organization. Weak internal controls make it difficult to prevent and detect an occurrence of fraud. This paper seeks to evaluate a recent case of cash larceny by a former employee at Glen Aubrey Fire Company.

Fraud is an issue that causes major scandals, although it is a very ancient scheme. Recent fraud events gave light to gaps that facilitated its events. Its extent was drastic by affecting financial markets that eventually trickled into global markets. Major organizations and countries worked cohesively and continue to address the gaps and, in effect, implemented strict compliance regulations to diminish and refrain fraudulent activities. Strict compliance regulations are examples of a fraud response plan the small family business could have implemented to refrain the perpetrators from fraudulent incidents, protect organizational assets and the organization’s going concern.

According to Daniel F. Dooley (2008), a member of the Commercial Fraud Taskforce, financial fraud with private middle-market companies is on the rise. In fact, Mr. Dooley believes that he has seen more instances of fraud in the past two years than in the previous ten. He notes seven areas in which financial fraud has increased over the past few years:

Stanton, I agree the main factor in this analysis is intent. The key element is no requirement to prove intent for depraved heart murder or constructive fraud. Although the fraud may be unintentional, the actions and outcomes of constructive fraud and fraud are equal. Thank you for providing an example in your response. I had a hard time thinking of an audit example of constructive fraud. Per discussion with attorney Elizabeth Turley, one of the most common examples of constructive fraud results from the sale of used cars by individuals or car dealers (personal communication, January 20, 2016). After reading your example, I now see that an auditor taking short cuts is an example of constructive fraud. I definitely think this may happen with

Richard Okumoto has the greatest responsibility because he is in charge of the accounting department of the company. He is also legally responsible for the information in case of fraud, although he cannot be personally held responsible for the act. He can lose his job before he has enough time to explain the problem to the members of the board.

This section of this chapter aims to interpret the findings and critically evaluate the study. This research indicates that internal control can prevent and detect fraud in Nigerian banking sectors. The first section of the findings contains the first objectives of this research which is to find out the employee knowledge based on the concept of fraud in banking sector. Therefore, According Biegelman, Martin T, (2013) said The penchant for extortion happens when three basic components meet up; intention, opportunity, and rationalization each of these components is fundamental and interrelated all together for a man to commit fraud and the nonappearance of any of them would not permit a man to commit fraud. Opportunity is the driving variable. Without circumstance, fraud plan can 't succeed. Similarly, if a person 's honesty is affected by pressure and justification, and opportunity presents itself, unless the individual has the ability to confer the extortion, the plan won 't succeed (Dennis M. Lormel 2011). However, from the researchers’ findings having asked the staff at the bank there what they think fraud is, 50% of the respondent defined fraud as an illegal act of acquiring wealth, Aderibigbe (1999) and Onibudo (2007) also contributed to fraud immensely, these authors mentioned that one of the causes of fraud is because of inadequate compensation no increase in salary or fringe benefit given to staff, poverty and infidelity of employees fraud is bound to