...Kyle Welch 2/19/2015 Fraud Paper In the movie “Office Space”, three men at an Information Technology company begin to commit computer fraud. They embezzle (steal) a fraction of a penny from each of the company’s financial transactions to a separate account of their own. Because the amount of money seems so small, it seems unlikely that anybody would notice the missing money. The fraud they commit in the movie is referred to as misappropriation of assets, which is the embezzlement of company assets by directors, other fiduciaries or employees. Misappropriation of assets is the most common and widespread fraud reported by companies. Whenever an employee commits fraud it is because of three elements, either combined or individually the reason behind their crimes. The first reason somebody would commit fraud is pressure, their incentive. In the movie “Office Space”, the main character seems to feel emotional pressure to steal from the company. He maybe had strong feelings of resentment to the company or felt they were treating him unfairly. He was constantly called in to work on weekends when he was supposed to be off, and also was not receiving a salary very appealing to him. The second reason somebody would commit fraud is the opportunity, the condition or situation that allows a person or organization to commit and conceal a dishonest act and convert it to personal gain. In the movie the main character has a friend at the company who says he can put a virus into their...
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...INTRO Fraud has plagued the world of accounting since the establishment of the profession. Fraud can be committed against an individual or a business. In order to identify fraud, an auditor must be able to differentiate between what is considered fraud and what is considered error. Fraud as defined in our textbook as “intentional misstatements that can be classified as fraudulent financial reporting and/or misappropriation of assets.” On the other hand, error is “unintentional misstatements or omissions of amounts or disclosures.” This simply means that fraud and error can have the same affect on a company and its books, the main difference between the two is the intent of the perpetrator. This paper will explore the basic types of fraud, preventing and detecting fraud, an example of a major fraud committed in United States history and the governments reaction to the prevalence of frauds in the 1990s and early 2000s. TYPES OF FRAUD There are three basic types of fraud perpetrated by employees. They are misappropriation of assets, bribery and corruption, and fraudulent financial reporting. Misappropriation of assets is the theft or misuse of assets that belong to a company. Misappropriation of assets is the most common type of fraud; statics show that it has occurred in over 91% of fraud schemes. It is also the simplest type of fraud to understand and commit which might explain its prevalence in many business fraud schemes. Asset misappropriation is also the least expensive...
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...The United States employs three different credit reporting agencies to conduct all the investigation, reporting, freezing, and thawing of credit reports for U.S. citizens. These bureaus must be contacted separately by victims of online scams to request a credit freeze, or security freeze. Use the information and links below to request a credit freeze faster and with minimal effort. Equifax Equifax performs credit checks for consumers and businesses, lets them screen their Social Security Numbers for fraudulent use in online scams, and operates a fraud alert system for your individual credit report. They headquarter in Atlanta, Georgia and serve customers from more than 20 countries. Their website allows you to request, ask for a brief lift of the freeze, and permanently delete it when you recover after online scams and fraud. The initial steps when you suffer identity theft must be conducted by certified mail with a return receipt requested. Send all applications, affidavits, police...
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...various diverse ways. The laws in regards to social insurance misrepresentation differ by purview, however both state and government laws are set up to diminish and rebuff this wrongdoing. Fraud in medicinal services can expect differing frames. As indicated by the National Health Care Anti-Fraud Association, the most widely recognized is charging for medicinal services benefits that were never rendered, either by adding charges to honest claims, or by utilizing genuine patient names and medical coverage data to create claims. Up coding is the second most normal; third is the ponder arrangement of medicinally superfluous administrations, which incorporate tests, surgeries, and different methods....
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...odd questions and situations that may present themselves and stay diligent. Shoulder surfing is the technique is just as it also sounds most often being used at ATMs. The scammer will literally look over your shoulder to see your pin number or codes. This could also happen at stores where you use your debit or credit card to make a purchase. To prevent this from happening you should always be aware of your surroundings and always be better safe than sorry. On the other end technological schemes include credit or debit card theft, skimming, pretexting, man-in-the-middle attack, phishing, pharming, vishing, search engine phishing, SMishing, Malware Based Phishing, phishing through spam, and spear phishing. Credit and debit card theft is a fraud where somebody has stolen your identity. This could have a severe impact on your life since the information on the card can be used to perpetrate other types of identity theft crimes. They can use things such as signatures on the back of the card to obtain the information they need to open other credit card accounts and jeopardize your finances. The best way to prevent this from happening is writing see ID on the back of cards. You should also make sure your card is always in plain sight like at restaurants where the waiter sometimes takes the card to complete the transaction. Also never use a credit card on an unauthorized website while shopping online. Skimming is another technique used to steal identity. This can happen anytime you use...
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...Submit a 3 page paper that 1) explains the difference between litigating an embezzlement case in civil court and criminal court, and 2) discuss the role of an expert witness/fraud examiner in each proceeding. There are two major factions of the United States court system: civil cases and criminal cases. Both take place in courtrooms all across the country, but there are several differences that separate the two as well as the role of fraud examiner in each proceeding. The major difference of the two in an embezzlement case is: 1) In a criminal court case, the opposing parties are the prosecutor, often the Assistant District Attorney, and the defendant, represented by a trial lawyer. In a civil court case, however, the opposing parties are the plaintiff and the defendant, both of whom are typically represented by attorneys. 2) In a criminal court case, the prosecutor must establish the guilt of the defendant, but in a civil court case, the plaintiff must only establish the liability of the defendant. In the former, the defendant is either guilty or not guilty of a crime, while in the latter, the defendant is either liable or not liable for monetary damages suffered by the plaintiff. For example, in a criminal court case, the defendant can be found guilty of money laundry his money, while in a civil court case, the defendant can be found liable for stealing someone’s car. In civil court cases, the plaintiff must only win by a preponderance of evidence, which means that the defendant...
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...Criminal law, also known as penal law, refers to different jurisdictions of various bodies of rules whose general characteristic is incomparable and often impose punishment for failure to comply. Criminal punishment includes execution, loss of liberty, government supervision (either parole or probation), or fines depending on the offense and jurisdiction. Murder is one example of some of the archetypal crimes, but the acts that are prohibited are not entirely consistent between different criminal codes, and even among a particular code lines may be confused as civil infractions give rise to criminal consequences. Criminal law is typically enforced by the government. Civil law, or branch of law, deals with disputes between organizations and/or individuals, in which compensation may be given to the victim. Civil courts provide a confabulation for deciding disputes involving torts (such as libel, accidents and negligence), contract disputes, property disputes, the probate of wills, trusts, commercial law, administrative law, and other private matters that involve private parties and organizations. An action by an individual against the attorney general is a civil matter, but if the state is represented by the attorney general or other agent from the state and takes action against an individual, this is no longer civil law but instead this is now public law. The objective of civil law differs from other law. Civil law attempts to right a wrong, settle a dispute, or honor an...
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...Anatomy of computer accounting frauds A. Seetharaman, M. Senthilvelmurugan and Rajan Periyanayagam Faculty of Management, Multimedia University, Malaysia Keywords Fraud, Corruption, Financial reporting, Whistleblowing, Internal control, Corporate governance Abstract This paper introduces fraud as asset misappropriations (85 per cent of cases), corruption and fraudulent statements. Symptoms include accounting anomalies, lack of internal control environment, lifestyle and behaviour. The most effective tools for fraud detection are internal audit review, specific investigation by management, and whistle-blowing. The paper details the fraud investigation process and the role of auditors as fraud examiners. The correlation of fraud perpetrators’ personality with the size of losses is examined. Personality is analysed into age, gender, position, educational background and collusion. A strong system of internal control is most effective in fraud prevention. Fraud prevention procedures, targeted goals and improvements to system weaknesses feature in the paper. Fraud impacts on accounting transactions in accounts receivable, receipts and disbursements, accounts payable, inventories and fixed assets, and financial reporting. The monetary impact resulting from fraud is analysed by the type of victim and the amount of loss. Internal control and good employment practices prevent fraud and mitigate loss. Computer accounting frauds 1055 Introduction Accounting fraud involves an intentional action...
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...Enron Research Paper In 2001, the world was shocked by the demise of Enron, a multibillion dollar corporation that had thousands of employees and people that had affiliations with the company including The White House itself. Because of the financial chaos and destroyed lives and reputations this catastrophe left in its path, questions arose concerning how exactly it happened, why it occurred, and who was behind it. It is essential to understand how this multibillion dollar corporation rose to power and later imploded. Enron itself was born as the result of Houston’s Natural Gas and InterNorth, a gas based pipeline company from Nebraska in 1985. In the final analysis, the conspiracy of Kenneth Lay, Jeffery Skilling, and others, including the accounting firm of Authur Anderson, led to the collapse of Enron due to fraud, shady accounting practices, false reporting revenue, and general disregard of virtually every principle of business ethics. Kenneth Lay, Jeffrey Skilling and Richard Causey went on trial for their part in the Enron scandal in January 2006. The 53-count, 65-page indictment covers a wide range of financial crimes, including insider trading, making false statements to banks and auditor’s bank, fraud, securities fraud, wire fraud, money laundering, and conspiracy. Another huge player in the Enron scandal was Arthur Anderson, who was charged with obstruction of justice for destroying thousands of documents, e-mails, and company files that connected the firm to its...
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...SUPPORT@ACTIVITYMODE.COM ACC 576 WK 4 ASSIGNMENT 1 ACC 576 WK 4 Assignment 1 - Audit Planning and Activities Search the Internet for a recent occurrence of accounting fraud that an independent accounting firm failed to detect. Write a three to four (3-4) page paper in which you: 1. Evaluate the extent of the fraud in question, and suggest three to five (3-5) reasons why the independent auditors failed to detect the fraudulent activity. 2. Determine the level of responsibility of the auditors to detect within the scope of the audit activities. 3. Suggest the main audit procedures that the firm should have performed to detect the fraud. Indicate your rationale behind your suggested audit procedures. More Details hidden... 1. Activity mode aims to provide quality study notes and tutorials to the students of ACC 576 WK 4 Assignment 1 in order to ace their studies. ACC 576 WK 4 ASSIGNMENT 1 To purchase this visit here: http://www.activitymode.com/product/acc-576-wk-4-assignment-1/ Contact us at: SUPPORT@ACTIVITYMODE.COM ACC 576 WK 4 ASSIGNMENT 1 ACC 576 WK 4 Assignment 1 - Audit Planning and Activities Search the Internet for a recent occurrence of accounting fraud that an independent accounting firm failed to detect. Write a three to four (3-4) page paper in which you: 1. Evaluate the extent of the fraud in question, and suggest three to five (3-5) reasons why the independent auditors failed to detect the fraudulent activity. 2. Determine the level of responsibility...
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...THE ROLE OF INTERNAL AUDITING IN FRAUD PREVENTION AND INVESTIGATION. INTRODUCTION. Internal auditing is charged with the overall responsibility of reviewing, evaluating and monitoring the organization’s internal controls to ensure efficiency. Its functions include a detailed testing of transactions and balances, and performing routine or sometimes, random checks as a precautionary measure. During this process, an auditor might uncover fraudulent practices, which would otherwise have gone unnoticed. This paper intends to clarify the difference between auditing and fraud investigation, fraud indicators, highlight the role of audits in fraud prevention and investigation. THEORETICAL FRAMEWORK AND CONCLUSION. Paul A. Rodrigues said, “It has been aptly said that auditors look at the ‘donut’ and fraud examiners look at the ‘hole’” (Auditing vs. Fraud Examination, para. 2). That statement indicates a difference between auditing and fraud investigation; audits are reoccurring (on a regular basis), fraud investigations are not (only when there is sufficient predication); an audits scope is general, that of fraud investigations are specific (allegation based); an audit’s objective is to express a general opinion, a fraud examination’s is to affix blame where an allegation is confirmed (adapted from the ACFE Fraud Examiners Manual). That being said, an internal audit is party to a fraud investigation along side forensic investigators, legal counsel, law enforcement and the lot...
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...Types of Fraud This paper will discuss fraud as well as differentiate between the different types of fraud. It will explore the reasons why people commit fraud, the types of people that are committing fraud, and the motives for people to commit fraud. Second, this paper will also discuss the fraud triangle along with the importance. Third, it will discuss some of the controls that prevent and detect fraudulent behavior. Finally, an exploration of whether rationalization contributes to fraud. Financial Fraud According to Albrecht, Albrecht, & Albrecht (2006), fraud is defined as embracing “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.” In other words, fraud involves intentional deception, false confidence, and reckless trickery. (Albrect, Albrect & Albrect, 2006) Different Types of Fraud What are the different types of fraud? Types of fraud include employee embezzlement, management fraud, investment scams, vendor fraud, and customer fraud. Employee embezzlement is simply the employee stealing from the employer. Investment scams involves fraudulently tricking investors into investing money into fraudulent...
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...Discussion "Fraud " Please respond to the following: * From the e-Activity, evaluate the cause(s) of the fraud. Recommend a strategy that could have prevented the fraud. Support your recommendation with examples. ACC 578 Week 2 Discussion 1 "Data Analysis and Fraud Investigation" Please respond to the following: * Imagine that you have been hired as a fraud examiner to review the risk of fraud at a major retailer. Analyze the data analysis tools available to you and propose a plan for which tools you will use. Provide a rationale for your plan. ACC 578 Week 2 Discussion 2 "Audit Objectives and Computer Analysis" Please respond to the following: * You have been tasked by your audit manager to develop an audit plan of a major bank. Propose the key elements of your audit plan and the end result you expect from implementing the audit. Justify the key elements you chose for the plan. * From the e-Activity, analyze the systems the company used and propose a computer analysis plan that would have detected the fraud. Support your analysis with examples. ACC 578 Week 2 Assignment 1 Fraud Prevention and Detection Policy Due Week 2 and worth 160 points You are a senior accountant at a new start-up information technology company known as Dingwow Inc. You have just recently been hired and the company has charged you with recommending a fraud policy. Use the Internet, Strayer databases, or your text, to research the elements of an effective fraud policy. Write...
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...Zzzz Best Company, Inc. Case 1.9 Zzzz Best Company, Inc. Case 1.9 Case 1.9 ZZZZ Best Company, Inc. Delta. Describe the elements of the Fraud Triangle that apply to this case. Assume you are the perpetrator. Is there a better way to perpetrate this fraud? If there is, describe your method. Specify practical recommendations for the client to prevent this fraud from occurring in the future. The first element of the Fraud Triangle in the case of ZZZZ Best, case 1.9 is Incentives/Pressure. Incentives/Pressure- As a result of the pressure placed on a person who is only a teenager in a tough business, one who faced a lack of working capital, the lack of assets and little profit make it difficult for a person of this stature to achieve financing to produce cash flow for sustaining of operations. One quickly realizes that through fraud a person could obtain funding to sustain operations. Through credit card fraudulent charges and check kiting and to stage theft to fleece one’s insurance company, producing more cash flow, one can raise Is this essay helpful? Join OPPapers to read more and access more than 600,000 just like it! get better grades quick and easy money. Through this experience with these types of fraud, it is realized quickly that one could bypass internal controls and create assets to bolster the company’s financial statements. From this point, with beating the system proving to be so easy, the next step is to forge friendships and acquaintances...
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...Bank Frauds “Lapses in system make easy the job of offenders to dupe banks” Fraud is any dishonest act and behaviour by which one person gains or intends to gain advantage over another person. Fraud causes loss to the victim directly or indirectly. Fraud has not been described or discussed clearly in The Indian Penal Code but sections dealing with cheating. concealment, forgery counterfeiting and breach of trust has been discusses which leads to the act of fraud. In Contractual term as described in the Indian Contract Act, Sec 17 suggests that a fraud means and includes any of the acts by a party to a contract or with his connivance or by his agents with the intention to deceive another party or his agent or to induce him to enter in to a contract. Banking Frauds constitute a considerable percentage of white-collar offences being probed by the police. Unlike ordinary thefts and robberies, the amount misappropriated in these crimes runs into lakhs and crores of rupees. Bank fraud is a federal crime in many countries, defined as planning to obtain property or money from any federally insured financial institution. It is sometimes considered a white collar crime. The number of bank frauds in India is substantial. It in increasing with the passage of time. All the major operational areas in banking represent a good opportunity for fraudsters with growing incidence being reported under deposit, loan and inter-branch accounting transactions, including remittances...
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