CFE Vocab Flashcards
Pervasive problem
Contagious or unstable problem
Intentional misrepresentation
intentional deception , deprive a victim of a legal right or to gain from a victim unlawfully or unfairly.
Organizations financial statements
Provide information about results of operations financial position ad cash flows.
Overstating revenues
falsely reflects a financially stronger company by inclusion of cost or financial obligations. results in increased equality and net worth for the company increased earnings per share or partnership profit interests or
Understating expenses
reported amount is less than the actual true amount based on accounting rules
Manipulating assets and liabilities
(ALM) asset and liability management. the act of intentionally altering or misrepresenting financial states by inflating or deflating the value of assets or liabilities to mislead stake holders such as investors, regulators or cretritor can make the company appear more financially stable or profitable than it truly is.
Inflating assets
overstating the value of assets inventory or property to make the company look more valuable
Understating liabilities
downplaying the amount of debt or other obligations a company has to make it seem less risky or financially burdened
Shifting liabilities or assets.
moving begets or other obligations off the balance sheets to improve apprenticeship financial health (illegal unethical finical fraud mislead investors and harm the border economy.
Asset Misappropriation
this is the most common fraud that involves the theft or misuse of an organization’s assets it. can include schemes such as embezzlement , skimming and fraudulent disbursements.
Misuse of an organization’s assets
improper or illegal use of company resources for personal gain or purposes other than their intended business function.
Fraudulent expense claims
Inflating Expense Amounts: The individual submits receipts or expense claims for amounts that are higher than what was actually spent. For example, they might claim a meal cost $100 when it was actually only $50.
Falsifying Receipts:
The individual might create fake receipts or alter legitimate ones (e.g., changing the amount or date) to make it appear as though the expenses are legitimate.
Claiming Personal Expenses as Business Expenses:
Personal costs (like a family vacation or a meal with friends) are submitted as if they were business-related. For example, an employee might submit a personal dinner bill and claim it as a “client meeting.”
Double-Claiming Expenses:
he employee might submit an expense claim for the same item more than once, either by submitting the same receipt or by using multiple forms to claim the same expense.
Submitting Non-Existent Expenses:
The employee creates entirely fictional expenses (e.g., inventing travel or lodging costs) and submits them for reimbursement.
Misclassifying Expenses:
he individual may submit personal or unrelated expenses under a category that’s typically reserved for business-related claims (e.g., charging personal groceries as “office supplies” or “business lunch”).
Excessive or Unauthorized Travel Expenses:
Employees might claim luxurious travel or lodging costs that exceed company policy or are unnecessary. For example, flying business class when only economy class was allowed, or claiming meals above the allowed per diem.
Using Company Credit Cards for Personal Purchases
Some employees may use company-issued credit cards for personal expenses and then falsely classify those charges as business-related.
misrepresenting financial assets and falsely claiming funds in child support could be considered a form of fraud and may be subject to legal and administrative actions, including within organizations like Department of Children and Families (DCS) or Department of Social and Health Services (DSHS). YES OR NO and Why
YES ,These agencies are responsible for ensuring the proper allocation and distribution of public funds, including child support payments, and preventing fraudulent claims related to child welfare and financial assistance.
Can misrepresenting financial assets be considered Fraudulent reporting ? Falsely claiming funds in child support be considered Misrepresenting Financial assets. Yes or No and explain Why?
If an individual intentionally misrepresents their financial situation (e.g., hiding income, underreporting assets, or overstating financial need) when applying for or receiving child support, they may be committing fraud. This could include claiming a lower income to reduce child support payments or failing to disclose other assets or sources of income.
Can misrepresenting financial assets be considered Intentional Deception? Yes or No and Explain why
Misrepresenting financial status to avoid paying or reduce child support payments is a violation of the law and can be pursued by the government. This could involve both civil and criminal penalties depending on the severity of the deception.
Can misrepresenting financial assets be considered False Claims for child support Yes or No and Explain why
False Claims by One Parent: If one parent falsely claims that the other parent is not paying the correct amount of child support, or inflates claims regarding child-related expenses, this could also be seen as fraud. For example, if the custodial parent falsely claims the non-custodial parent owes more than the actual support or falsely claims expenses for reimbursement, that constitutes a fraudulent misrepresentation.
Can misrepresenting financial assets be considered the impact on child support enforcement DSHS DCS Yes or No and Why?
DCS/DSHS agencies handle child support enforcement, and making false claims could waste public resources, mislead the agency, and negatively affect the intended distribution of child support funds.
Can misrepresenting financial assets be considered Inappropriate Misuse of Funds: Yes or NO explain Why
If one parent fraudulently claims child support funds (for example, by submitting false invoices, exaggerated expenses, or claiming child support payments under false pretenses), they are essentially “stealing” from the other parent or misdirecting funds. This could be especially problematic in cases where the child support payments are intended for specific child-related needs (e.g., healthcare, education, clothing), and funds are being misused for other purposes.
Can misrepresenting financial assets be considered indirect Theft
While the funds themselves are meant for the child or the custodial parent, the act of falsely inflating claims or misreporting financial details could be seen as stealing from the other parent if it deprives them of the rightful support or damages the financial fairness in the process.
What are the legal implications considered Criminal Liability
Criminal Liability: If the fraud is significant, the person committing the fraud could face criminal charges, including theft by deception, fraud, or theft of government benefits. This could lead to serious consequences, including fines, repayment of funds, and imprisonment.
Civil Liability
In addition to criminal charges, the wrongdoer might be required to repay the fraudulent child support payments or reimburse the other parent for any overpaid or misallocated funds.
Misrepresenting financial assets and falsely claiming funds in child support could certainly be considered a form of fraud under DCS/DSHS oversight. YES OR NO
YES
This is because these actions typically involve intentional misrepresentation to unlawfully gain funds that should go to the rightful party (the child or custodial parent). Both civil and criminal penalties can apply, and it is considered an offense not only against the other parent but also against the public trust, as government agencies are often involved in managing and enforcing child support payments. YES or NO
YES
