Fraud Examination

4268 Words Mar 10th, 2011 18 Pages
Chapter 1

Discussion Questions

1. Fraud always involves deception, confidence, and trickery. The following is one of the most common definitions of fraud:

“Fraud is a generic term, and embraces all the multifarious means which human ingenuity can devise, which are resorted to by one individual, to get an advantage over another by false representations. No definite and invariable rule can be laid down as a general proposition in defining fraud, as it includes surprise, trickery, cunning and unfair ways by which another is cheated. The only boundaries defining it are those which limit human knavery.”

Fraud is deception that includes the following elements: 1. A representation 2. About a material point 3. That is false, 4.
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Third, Ponzi was extremely talented at manipulating victims’ emotions. Ponzi was able to capitalize on individuals’ greed. When people began to see their friends and family members receive dividends from investments, they too wanted in on the scam.

7. As the number of frauds and the amounts of fraud losses increase, so do the opportunities for successful careers in fraud fighting. In the text, we have listed five areas in fraud fighting that will be rewarding and have high demand in the future. They include the following:

1. Government: This includes FBI, Postal Inspectors, Criminal Investigation Division of the IRS, U.S. Marshals, inspectors general of various governmental agencies, state investigators, and law enforcement officials. 2. CPA Firms, Forensic Accounting Firms, Litigation Support Firms, and Law Firms: These individuals will conduct investigations, support firms in litigation, do bankruptcy-related fraud work, serve as expert witnesses, consult in fraud prevention and detection, and provide other fee-based work. 3. Corporations: Individuals who work for corporations will prevent, detect, and investigate fraud within a company. This category includes internal auditors, corporate security officers, and in-house legal counsels. 4. Lawyers: Lawyers will defend or prosecute organizations in civil and criminal cases. 5. Consulting: University Professors, Hospital

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