Non-For-Profit Fraud Authors’ Note This paper was prepared for Advanced Accounting, Summer 2013. OUTLINE 1. Introduction 2. The Reasons of Fraud in Nonprofits. 3. Types of Nonprofit Fraud. 4. Recent Fraud Cases: A. $1,000,000 Charity Scam by John Cody. B. ASPCA International and $27,000,000 Fraud. C. Fraud Committed by Anita Collins, Church Bookkeeper. D. Fraud Committed by Hugh Blackburn. 5. Fraud Prevention in Nonprofit Organizations. 6. Conclusion. Introduction
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“Cyber-crime,” which refers to any criminal activity committed with the aid of or in the arena of the Internet and similar telecommunications, is both a new incarnation of old crimes through a new medium, and a unique entity all its own. It differs from physical crime in four ways. It is easy to commit, requiring minimal resources for great potential damage, being committable in a jurisdiction in which the perpetrator is not physically present, and often, not being entirely clearly illegal. A cyber
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Customer Fraud 2) Consumer Fraud/ Investment Scam 3) Employee Embezzlement 4) Management Fraud 5) Vendor Fraud 6) Customer Fraud Case 7: 1) Fraud is being committed against the firm in this case by Bob. Fraud occurs when a person intentionally cheats or tricks others for their own benefit. Regardless of the magnitude of the charges or the fake excuse given to the reason for the charges, he is intentionally charging non-business lunches to his employer. This is also known as employee fraud, or
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1. Introduction WorldCom, the telecommunications giant, once was the largest telecommunications company in the world, with more than $30 billion annual revenue, $104 billion in assets and more than 20 million customers. John Sidgmore (2002), Ebbers’ successor after the scandal, said “WorldCom is a key component of our nation’s economy and communications infrastructure.” However, the giant collapsed in 2002. 2. The Main Issue: Earnings Management 3.1 Definition of Earnings Management
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Business Fraud Amber Boltze ACCT451 November 8, 2013 David Adu-Boateng In April 2011, a number of lawsuits were filed against Sony Corporation for the theft of user data from the PlayStation game network. The lawsuits accuse Sony of negligence and breach of contract for allowing the personal data of more than 100 million on-line video game users to be compromised (Tauriello, 2011). A hacker stole the names, birth dates and possibly credit-card numbers for millions of people who play online
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balance sheet look better than what it really is. The second issue for the company was making fake accounting entries to make them look like they generated revenues from corporate unallocated revenue accounts. WorldCom had approximately $3.8 billion in fraud of June 2002. For unethical practices WorldCom was capitalizing their products when they should have been expensing them. As well WorldCom was generating revenues to corporate unallocated revenue accounts. To counter this measure the external auditors
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focus on fraud from a business perspective has significantly increased over the last decade. Every business, company or entity is subject to fraud risk; there is no immunity when it comes to fraud. There has been much legislation passed by the government and many new guidelines required by different accounting agencies. The Implementation or addition of an internal audit department has been wide spread. External audit independence, corporate governance and most recently the use of a fraud risk assessment
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on the issue for an extended period of time there might be no recovery from the issue and the accountant could be fired, or worse, the company could go under. Another situation for misrepresentation of figures could be from hiding money, which is fraud, in relations to taxes or personal gain. The consequences for this are of course a hefty fine and imprisonment. Companies do this very frequently but not all get caught. Companies and accountants will do this to try and squeeze every dollar into their
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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
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Consideration of Fraud within Small Business Organizations Introduction In recent studies made by Klynveld, Peat, Marwick and Goerdeler, LLC (KPMG), Fraud and Misconduct survey 2010 shows “The value of frauds committed by employees has double during the past two years with the average case now costing victims $3 million. The survey found that 61% of cases, there was no recovery of cash stolen, and that the average time to detect major fraud has increased from 342 days to 399 days. It
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