...to forge checks payable to her own name. According to the 2010 Report to the Nations on Occupational Fraud and Abuse the perpetrator committed fraud by an asset misappropriation scheme in which the perpetrator steals or misuses an organization’s resources. Asset misappropriation is broken down into some sub-schemes like skimming, cash larceny, billing, expense reimbursement, check tampering. She was a well-trusted employee and even had previously caught other employees involved in embezzlement and frauds. So there was no reason to expect her of committing a fraud, costing the Company $204,000.00. In the Reports to the Nations study, the average organization annually loses were 5 % of its revenues due to fraud. This is an important topic and individuals have been committing these acts for as long as records have been kept. It is important to implement fraud programs to help reduce or eliminate fraud loses. One of the major things the Company could do to help prevent any future fraudulent activities is start educating the employees on preventing and detecting fraud. Employees should be trained in what constitutes fraud, how it hurts everyone in the company and how to report any questionable activities. According to the Report to the Nations on Occupational Fraud and Abuse organizations that have anti-fraud training for employees and managers experience lower fraud losses. Another thing that the Company could do is start utilizing surprise audits. The case...
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...Economic Art Fraud There are so many economic problems facing the arts to day hard to give just one. However in my opinion, the biggest issue that the arts are facing economically is the issue of art forgery in the art market. This is because it often hurt the value of the original work and causes the creator to lose money. This false art has a tendency to hurt the reputation of the original piece by making it more difficult to tell the difference between what is real quality art and what is a fake. This is shown in the case with the famous Aboriginal artist, Clifford Possum Tjapaltjarri, and John O’Loughlin, an Adelaide art dealer. According to Duncan Chappell and Kenneth Polk, “In February 1999 Clifford Possum visited a gallery in Sydney where a number of paintings attributed to him were being displayed for sale. Upon inspection of the paintings Clifford Possum identified a number which he said were not produced by him. The gallery owner indicated that he had obtained the paintings from O’Loughlin. Subsequently, Clifford Possum also identified paintings falsely attributed to him which were in the hands of the NSW Art Gallery and the Museum of Contemporary Art, all of which had passed through O’Loughlin’s dealership” (pg. 395.)....
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...Puffery Comparing your product to that of a competitor without scientific studies to substantiate your claims could lead to charges of deception. Saying you make a better pizza is puffery. Saying two out of three people prefer your pizza when you have no studies to substantiate the claim crosses the line to deception. Literal false largely applies to promotional materials that involve statistical and testing proof of claims. The “tests prove” literal false advertising is where advertising relies on a study or test that establishes the supposed validity of the claim. There are also “bald claims” that do not rely on tests or peer-reviewed studies and therefore must be proven to be false Shoplifting is a common crime that occurs when someone steals merchandise offered for sale from a retail store. elements of shoplifting are (1) willfully taking possession of or concealing unpurchasedgoods that are offered for sale (2) with the intention of converting the merchandise to the taker's personal use without paying the purchaseprice kleptomania (a compulsive urge to steal) Some of the things that can happen to shoplifters are: * They may be arrested and paraded through a store in handcuffs. * They may face charges for theft. * They may be banned from stores or malls. * People who have been arrested for shoplifting — especially if it's more than once — may end up with a criminal record. This can make it harder to get a job, get into college, or do the other things...
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...Crime yielded very few results. The author examines this from two broad categories. accounting for several factors within criminology or social science to allow a better study of the topic, in a more narrow scope. From these typologies, we can also draw numerous scientific values. The author uses the type of activity to study an area. The other typologies include, victims, such as the general public, consumers and employees. Another typology is the size of entity, such as the crime of a major domestic corporation. Thirdly, the product or service involved is another topology. Finally, the nature of the harmful activity. I believe the victim and type of activity are the most significant, because you will most likely have the most data to draw from. Victims will almost definitely report their loss if they suspect foul play; all the while the type of activity will be reported or derived from the victims report. These areas, in my mind, hold for quantitative data. 2. Identify and discuss how the corporate abuse of power, corporate fraud, and corporate economic exploitation are interrelated, and which segments of society suffer from these forms of White Collar Crime. The corporate abuse of power, corporate fraud and corporate economic exploitation are interrelated by very undefined line. Based on my reading corporate abuse of power may be...
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...Assignment 2--- White Collar Crime Theories, Law, and Processes Lucas McPherson Professor Dr. Matthew Miko LEG 200 – White Collar Crime in Government, Business, and Labor December 21, 2011. 1. Explain white collar crime in terms of various theories related to criminology and crime. There are several basic theories in which white collar crime can be explained relating to criminology and crime. We must look at several concepts and behaviors and take certain metaphysical, ontological, and epistemological assumption about the ultimate nature of reality and being into consideration. Example, is reality subjective or objective? Is causation simply a human construct, or is it something that can be definitively and objectively established? The latter were two questions to approach some explanation of the theories of white collar crime and the criminological concept of the offenders in this sector. There are the sociological, biogenetic, psychological, and sociogenic explanation to white collar criminology and crime. The most basic theory of criminality states that criminals are different in some fundamental way from non-criminals. Then the nature of the difference must be identified. On a Sociological level the propensity to commit crimes, is shown to vary among various segments of the population or among different organization. The biogenetic explanation of criminality became especially influential in the nineteenth century. This states that criminals...
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...Course AC557:01: Internal Control Assessment and Design Unit 5 Final Project: Adelphia Introduction This case analysis is about the Adelphia Corporation fraud that was considered to be one of the massive corporate scandals in US history. This company did not receive as much television and news exposure as Enron and WorldCom, but the fraud the Rigas family had engaged in caused the company to sustain tremendous losses. Adelphia was considered a family owned business to the Rigas family members. John Rigas had dominant control over the company and used his power in the company to engage in fraudulent activity to maintain the extravagant lifestyle they were used to living. Their unethical behavior bilked the company out of more than $100 million dollars, they also hid $2 billion of debt the family had accumulated in off-balance sheet partnerships, and lied to the public and investors about Adelphia’s operation and financial condition. The lack of virtually no internal controls or corporate governance in the company allowed the family members to participate in internal corruption, fraudulent activity, unethical behavior which caused the company to file bankruptcy. Adelphia History John Rigas and his brother Gus Rigas started the first cable system in 1952 in Coudersport, Pennsylvania. The name they chose for the company was Adelphia since it is a Greek word that means “brothers”, and generations of the Rigas family would be hired as employees of the company (International...
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...players in the 2008 global recession have not only not been punished, but are still in the same positions of power and able to continue their transgressions. Here are some interesting highlights of the last decade: Enron scandal (2001): Andrew Fastow the CFO of Enron along with Kenneth Lay the Chairman and Jeffrey Skilling the CEO develop an offbalancesheet mark to market fraud that loses $11 billion and bankrupts Enron. It is the largest bankruptcy reorganization in US history at the time. They are charged with conspiracy, wire fraud, securities fraud, false statements, insider trading and money laundering. Fastow serves 6 years in prison, Lay passes away before sentencing and Skilling is sentenced to 24 years in prison. WorldCom scandal (2005): Bernard Ebbers the CEO of WorldCom loses $100 billion of shareholder value in the largest accounting scandal in US history (until Madoff). Ebbers is charged with securities fraud and conspiracy and is serving 25 years in prison. Bernard Madoff (2008): Bernard L. Madoff Investment Securities LLC heads a $50 billion ponzi scheme, the largest in history, and is charged with securities fraud, investment advisor fraud, mail fraud, wire fraud, money laundering, false statements, perjury, making false filings with the SEC and theft from an employee benefit plan. Madoff is sentenced to 150 years in prison and $17 billion in penalties. Subprime mortgage Crisis of 20072008: The greatest crisis yet which goes on to create the 20072012 global recession with...
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...out with it fresh choices to execute crime. The paper disputes that the internet shows fresh confronts to law enforcement in every expanded and budding nations. Conversely, budding nations endure significantly as of the actions of internet crime than their expanded counterparts as budding nations have insufficient expertise, infrastructure and deficient law enforcement proficiency. Consequences of Cyber Crime Phenomena for Developing Countries Cyber crime means any act of crime through computers and networks; in general this act is called hacking. Moreover, this crime also comprises conventional crimes performed by the Internet. As an example; theft of identity, hate offenses, credit card account thefts, telemarketing and Internet fraud are viewed as cyber crimes when the unlawful activities are conducted by the Internet. Many publications and reports on cybercrime commence by determining the term “cybercrime”. Another example for a global approach is Art. 1.1 of the Draft International Convention to Increase Security from Cyber Crime that indicates cybercrime cites to activities in respect to cyber systems (Nir, 2010, 151-153). Some other explanations attempt to take the intentions into consideration and...
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...Question 2 (28 marks) Mary Cooper owns five convenience stores that sell food, beverages, and gasoline. The stores are open 24 hours a day, 7 days a week. The business has 20 employees who do not always work at the same store; rather, they are assigned to stores on a rotating basis. Two employees work the day shift but only one works the night shift from 10:00 p.m. to 7:00 a.m. Ms. Cooper manages the company’s overall operations from head office. Customer satisfaction has always been important to Mary and she visits each store at least once a week and spends several hours serving customers and working alongside her employees. This gives her the opportunity to evaluate customer satisfaction and assess the quality of service provided by the employees. Recently, Mary has noticed an increase in the number of credit card transactions declined by the bank. An analysis of the reasons given by the card issuers showed that several cases occurred after the customers had disputed the transactions. Mary has asked you, in your capacity as an internal auditing expert, to analyze the situation and inform her of your findings. Here is a description of sales for each of Ms. Cooper’s stores: 1. All sales are recognized on a cash basis, and the company accepts major credit cards and debit cards. 2. Each store has its own cash register which records all transactions. The files are uploaded once a week to the central system server located at the company’s head office. 3. At the head...
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...Contrary to some belief, accounting is not a “walk-in-the-park” career. Accountants do not sit at a desk one-hundred percent of the time crunching numbers that always add up perfectly. In fact, accounting fraud is one of the largest scandals found today. When an accountant enters an engagement with a client, who are they liable to? Certainly not just to the client, but also anyone who could negatively be affected by a material misstatement, as well as the government. These responsibilities are not easily assumed, nor are they equally distributed. Accountants assume a large responsibility to their clients. They enter a contractual agreement through an engagement letter, and use engagement letters to minimize the risk they assume under the contract. Many engagement letters include memos limiting the recovery. (Reinstein, Lobingier, & Green, 2009) Accountants expressly agree to do a project by a specific date, and imply that the work will be completed carefully. If an accountant breaches the contract, they can be found liable for damages. If it can be found that an accountant did not act with skill and competence, causing harm to their client, negligence can be proved. Accountants also may be found guilty of fraud. Fraud can be proved if an accountant makes a false statement, knowing it is false, and the client relies on the information, resulting in damages. Another liability to the client is the trust clients give their accountants. They are liable to keep the...
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...to curb these scandals. 1. Introduction In the recent years, the public and business community have been surprised with the exposure of many corporate scandals and accounting fraud by the managers of the company. It disappoints many stakeholders as after the financial crisis in 1997, many efforts have been initiated and implemented to strengthen the business control and foundation of the company. One of the important lessons learned from the financial crisis in 1997 is the weaknesses in the governance of the company such as too much power is given to a single person in managing the company, weak internal control and poor work of the directors that leads to the failure of the company. Due to this, a total regulatory and governance were embarked all over the world. Just to name a few, in the US, the Sarbanese Oxley Act was established, while in the UK the Code of Corporate Governance was extensively revised to stop all these corporate diseases from spreading and becoming a cancer for the global business community. However, all this effort has seemed fruitless as after the heavy debate and discussion and huge struggle by the regulator and market administrator, these corporate scandals are still returning but with more scaring facts. 1.1 What do we mean by Fraud and Misconduct • Fraud is a broad concept that generally refers to “any intentional act committed to secure an unfair or unlawful gain” • Misconduct is also a broad concept and generally refers to “violations...
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...Background of the Study 4 Statement of the Problem 4 Purpose of the Research 5 Research Questions 5 Significance of the Research 5 LITERATURE REVIEW 7 CONCLUSION AND RECOMMENDATIONS 19 ABSTRACT This paper investigates White Collar Crime (“WCC) in society and the affects it has on businesses in today’s society, the cost and statistics involved with white collar crime and the difference in how white collar crime and street crimes are dealt with. While white collar crime has existed for many decades, I have conducted research regarding the definition of white collar crime, the history of white collar crime, the different types of white collar crime that affect businesses directly and indirectly, goals of white collar crime, fraud statistics and the cost factors related to white collar crime. White collar crimes and business ethics play hand in hand with one another and often cross the line with one another into criminal behavior. White collar crimes have played a very instrumental part in our downward economy over the past five years, and the level of trust given by society to corporations and employers entrusted with their life earnings has changed dramatically. My research will include factors that contribute to this problem and how white collar crime affects the management and operations of business organizations; what part modern technology plays in white collar crimes being committed; and what positions our society and government have taken on dealing with...
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...scene. However, it really depends on the type of crime. “Auditor should be watchdog and not be the bloodhound”. It’s a good quote that every auditor should know. This quote makes the definition of forensic accountants even simpler. The forensic accountant is the bloodhound of Book keeping. External auditors look at the numbers but the forensic auditors look beyond the numbers. Only Forensic just means "relating to the application of scientific knowledge to a legal problem" or "usable in a court of law." Most of the crimes, such as homicides, investigated on a show like "CSI" are known as "crimes against the person." Forensic accounting is simply a specialty field within the broader arena of accounting. The types of crimes forensic accountants investigate are classified as "crimes against property." They investigate crimes such as fraud and give expert testimony in court trials. They also perform work related to civil disputes. Forensic accountants are also known as fraud investigators, investigative accountants, forensic auditors or fraud auditors. Although forensic accounting may not sound as glamorous as its other investigative counterparts, the field has received more attention in recent years. This is due in part to the high-profile, financial white-collar crimes involving large corporations, such as the Enron and Adelphia Communications scandals of 2001 and...
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...Chapter 22 COMPUTER CRIME: PORNOGRAPHY, FRAUD, HACKING AND GAMBLING CHAPTER SUMMARY The Internet, a relatively recent phenomenon, has caused a change in how laws may or may not apply to formerly traditional situations. Furthermore, the Internet has allowed criminals to perpetrate crimes that could not exist but for cyberspace. Chapter 22 examines computer crime and the statutes enacted to combat this growing problem as well as the erosion of our personal privacy. Freedom of speech, online gambling and cybermedicine issues are also examined in light of contemporary applications and influences resulting from the Internet. CHAPTER OUTLINE I. COMPUTER CRIME AND CYBERCRIME A. Definitions 1. Computer crime consists of crimes involving: • Computers • Computer systems • Computer applications. 2. Cybercrime consists of computer crime that takes place in cyberspace 3. The Internet facilitates a number of opportunities for crimes to occur. 4. Typical cybercrime abuses include: • Hacking • Spreading of viruses • Fraud • IP theft • Appropriation of trade secrets • Defamation B. The USA Patriot Act, 2001 1. The USA Patriot Act provided significant new powers to federal law enforcement agencies. ...
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...Licensed to: iChapters User Licensed to: iChapters User Fraud Examination, Fourth Edition W. Steve Albrecht Chad O. Albrecht Conan C. Albrecht Mark F. Zimbelman VP/Editorial Director: Jack W. Calhoun Editor-in-Chief: Rob Dewey Sr. Acquisitions Editor: Matt Filimonov Associate Developmental Editor: Julie Warwick Editorial Assistant: Ann Mazzaro Marketing Manager: Natalie Livingston Marketing Coordinator: Nicole Parsons Content Project Management: PreMediaGlobal Sr. Manufacturing Buyer: Doug Wilke Production House/Compositor: PreMediaGlobal © 2012, 2009 South-Western, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher. For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706. For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permissions questions can be e-mailed to permissionrequest@cengage.com Library of Congress Control Number: 2010940986 ISBN-13:...
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