The Association of Certified Fraud Examiners, the recognized authority in fraud examination, defines occupational fraud as "the use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization's resources or assets." In the association's "2002 Report to the Nation on Occupational Fraud and Abuse," they estimate that 6% of gross revenue is lost to fraud. In 2002, that translated to approximately $600 billion dollars when applied to the Gross Domestic Product. Fraud falls into three broad categories: asset misappropriations (theft of cash or assets), corruption (transacting business deals that provide the perpetrator some personal benefit) and fraudulent financial statements (falsification of the financial statements for some personal gain).
Financial statement misrepresentation was found in only 5% of all fraud cases examined, but it was the most costly form of fraud with median losses of $4.25 million per occurrence. It also took the longest amount of time to detect. While the average fraud scheme lasted approximately 18 months before it was detected, fraudulent financial statement schemes went on average 25 months before they were detected. Unlike most forms of fraud, financial statement fraud is a crime normally committed by senior level management. While these executives are always motivated by some personal gain (financial or career advancement), inflating the stock price of the company is the method used to achieve that goal.
Types of Financial Statement Fraud.
There are five primary types of financial statement fraud.
MARITIME FRAUDS IN CHINA MARITIME FRAUDS IN CHINA Thesis statement: The author explores the causes and basic types of Maritime Frauds in China and puts forward some ways to be on guard against frauds. ... Documentary Fraud B. Ship Chartering Fraud C. Embezzlement Fraud 1. Scuttling Fraud 2. ...
The tooth fairy is an important mythical character in the majority of every young child's life. Children around the world find joy in ripping out their adolescent teeth in hopes of receiving a gift from the tooth fairy. I was one of those children. I would anxiously pull out my teeth one by one and ...
(Internet Fraud) Another popular scheme is the "Work At Home" type of trick. ... (Internet Fraud) The most severe form of internet fraud, involves identity theft, which is illegally getting a hold of someone's personal information in some way that uses fraud or deception and is used for financial gain. ... (Identity Theft and Fraud) Internet fraud can also be committed through the online investment scheme. ... (Internet Fraud) All these cases of internet fraud have prompted many people to the disillusionment that purchasing products online is not safe anymore. ... The fifth poin...
Protecting Your Bank's Online Identity: A Vital Step In Safeguarding Against Cyber fraud. ... Summary The article that I have chosen deals with important steps a bank needs to take to protect its customers from cyber fraud. ... The OCC recognized that fraud on the Internet was a serious problem and fictitious websites were using similar domain names of banks to mislead the customer into their site to get their personal and financial information. ... It is important to report information and suspicious activity because that is the first step in preventing massive fraud. ... Fraud ...
(Phrack 25,p.6) Computer fraud loss is estimated at $555,000 million annually with each individual case of fraud costing $100,000. ... This example is one of the largest electronic bank fraud cases on record. ... Proper internal controls reduce toe opportunity for fraud. ... Even secured transactions are not always safe from fraud. ... Although no security measure is fool proof, steps can be taken to reduce the chances of becoming a victim of fraud. ...
Still there is not really any substantial evidence that fraud risk or actual fraud had been lowered because of the Sarbanes-Oxley Act of 2002. ... The SOX should encourage most organizations to use diligence to try and prevent fraud or theft. ... More focus on controls will probably lead to more reliable financials and a reduced risk of fraud, and it is to be believed that more legislation is not the answer to the issue pertaining to fraud within organizations. ... Proactive fraud prevention implemented through corporation management will have to be the key to prevent fraud within organization...
Still there is not really any substantial evidence that fraud risk or actual fraud had been lowered because of the Sarbanes-Oxley Act of 2002. ... The SOX should encourage most organizations to use diligence to try and prevent fraud or theft. ... More focus on controls will probably lead to more reliable financials and a reduced risk of fraud, and it is to be believed that more legislation is not the answer to the issue pertaining to fraud within organizations. ... Proactive fraud prevention implemented through corporation management will have to be the key to prevent fraud within organization...
In today's society, newspapers around the world are filled with stories of fraud and financial misconduct. ... This is why fraud risk assessment is such an important process in all organizations. ... Requiring mandatory vacations can also uncover a fraud scheme. ... Fraud is an intentional misrepresentation by one person which results in gaining advantage over another person (Lawrence, 2004). ... While some of these prevention methods are more expensive than others, in the long run fraud prevention is cheaper than fraud detection because by the time most frauds are detected, substan...
There is a new type of fraud going on in America today, it has nothing to do with insurance or phony salesmen trying to sell a bogus product. ... The article that I read was about paternity fraud, it was called "Fair Is Fair, But its Often Sad, Too", by Kathleen Parker. ... He has now brought a lawsuit against the Childs mother for paternity fraud. ... The article itself really does not take a position on the topic of paternity fraud, it more or less explains this one mans struggle with it. ... Laws should also be made against this terrible con that women are pulling, who knows how many men ha...
