Questions and Answers: Criminal Justice

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Ms. Brooks 03/10/2012 UNIT 5 Essays Differentiate between fraud and abuse. Define fraud and abuse, identify at least three elements of each, and contrast the differences between them. Cite illustrative examples of the differences. Fraud is any and all means a person uses to gain an unfair advantage over another person. In most cases, to be considered fraudulent, an act must involve: – A false statement (oral or in writing) – About a material fact – Knowledge that the statement was false when it was uttered (which implies an intent to deceive) – A victim relies on the statement – And suffers injury or loss as a result Abuse is to wrongly or improperly; misuse.…show more content…
These frauds essentially amount to trickery; the perpetrator fools the company into handing over its money. Check tampering schemes are fundamentally different. In these frauds the perpetrator takes physical control of a check and makes it payable to himself through one Of several methods. Check tampering schemes depend on factors such as access to the Companies check book, access to bank statements, and the ability to forge signatures or Alter other information on the face of the check. There are five principal methods used To commit check tampering: 1. Forged maker schemes 2. Forged endorsement schemes 3. Altered payee schemes 4. Concealed check schemes 5. Authorized maker schemes What internal controls can be implemented to minimize the ability to perpetrate a ghost employee scheme? Mandatory copies of employment picture I D 's and forms and a second level of inspection of them. An employment picture stapled into employment file. Quarterly justification of employment files against payroll w/ a physical inspection of any new employees file. A second level of sign off on all the need for all new employees. For example, if your company has a janitorial staff. in order to hire a new janitor, require copies of the usual I9 ID 's, be included into personal file. Have a signoff sheet for two levels of hiring authorization with clear printed and signed names, justifying the new employee. Have a picture of the new employee
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