Prevention And Detection Of Accounting Fraud

2577 Words Oct 14th, 2014 11 Pages
Prevention and Detection of Accounting Fraud





October 21, 2014


A client has requested information on the prevention and detection of accounting fraud. The research paper will cover descriptions of types and components of fraud. It will offer suggestions as to who would commit fraud and how it would be detected and prevented. The research paper should provide a general overview of the subject in layman 's terms.


The Accounts Payable Manager writes himself a check which he then allocates to a fake invoice. The cashier pockets twenty dollars occasionally without ringing in a sale. The owner of the business fails to report thousands of dollars of expenses in his financial statements in a specific business year, all are examples of fraud that can occur in today’s business environment. There is no business enterprise that cannot be affected by fraud of some sort initiated by anyone involved in the business. To understand fraud and it’s ramifications on a business one must be able to answer the question what is fraud?
Simply defined, fraud is “wrongful or criminal deception intended to result in financial or personal gain”. (Oxford Dictionary)
Fraud will be committed by any member of an organization. There is no restriction of employee level, it can range throughout the organization and often occurs with the highest costs at the most upper levels. One of the defining…
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