-Who's in charge of internal control --> management (SOX)
-Management has to sign off to show internal control is working
-Everything over $10,000 needs a signature (stamps)

ACFE (association of certified fraud examiners --> results from misconduct of employees, managers, and executives) definition of occupational fraud - "use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing org's resources or assets."

Fraud - A generic term that embraces all the multifarious means that human ingenuity can devise, which are resorted to by one individual, to get an advantage over another by false representation. 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 that another is cheated. The only boundaries defining it are those that limit human knavery.

Financial Statement Fraud - The intentional misstatement of financial statements through omission of critical facts or disclosures, misstatement of amounts, or misapplication of accepted accounting principles.

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Types of occupational fraud and abuse:
1. Asset misappropriation (91.5%) - theft or misuse mostly committed by employees where cash is the most targeted asset
2. Corruption (30.8%)
3. Fraudulent statements (10.6%)

Six Types of Fraud:
1. Employee Embezzlement (most common, taking company assets) (creating dummy companies and have employers pay for the goods that are not received)
a. direct - no middleman (steal cash, inventory, tools, supplies, etc.
b. indirect - usually outside of org (ex vendor) (taking bribes from vendors, customers & non-delivery of goods)
2. Management Fraud - top executives manipulating financial statements (WorldCom, Enron)
3.