chapt 2

Question 1

criminology

Answer 1

sociological study of crime and criminals

Question 2

3 reasons why most people dont commit crime

Answer 2

fear of punishment
desire for rewards
to act in moral manner to societys standards

Question 3

fraudsters violate

Answer 3

trust

Question 4

occupational fraud and abuse

Answer 4

using ones occupation for personal enrichment for misuse of org assets

Question 5

4 common elements to the scheme

Answer 5

activity is secret or difficult to detect

violate employee fiduciary duty to org

committed for purpose of direct or indirect financial benefit

economic harm

Question 6

white collar crime

Answer 6

crime by business/ professional men
can be occupational fraud
abuse of power – trust violator

Question 7

ex of white collar crime

Answer 7

fraud, embezzlement, corruption

Question 8

org crime

Answer 8

when companies and corps, gov, etc are involved in a criminal offense

Question 9

organized crimes are…

Answer 9

complex with many people and orgs or shell companies across jurisdicitional borders

Question 10

ex of organized crimes

Answer 10

money laundering

Question 11

RICO stands for

Answer 11

racketerring influenced and corrupt org act

Question 12

RICO addresses

Answer 12

orgs involved in criminal activity

Question 13

negligence

Answer 13

someone / entity who fails to live up to the minimal standard of care

Question 14

5 elements for legal standard for neglience

Answer 14

duty
breach
cause in fact
proximate cause
damages

Question 14

perps generally have

Answer 14

position of trust in org and choose to violate that trust

Question 15

fraudster tend to have

Answer 15

no criminal background

Question 16

donald cressey fraud triangle

Answer 16

pressure
opportunity
rationalization

Question 17

pressure

Answer 17

creates motives for crime to be committed

Question 18

examples of pressures

Answer 18

financial issues in their lives, ego, crime

Question 19

percieved opportunity

Answer 19

believes they can commit fraud without getting caught

Question 20

2 components of opportuity

Answer 20

general info
technical skill

Question 21

rationalization

Answer 21

how fraudsters justify their crimes

Question 22

cresseys offender types

Answer 22

independent businessmen
long term violators
absconders

Question 23

absconders

Answer 23

take money and run

Question 24

fraud scale

Answer 24

Fraud is driven by pressure and opportunity, but personal integrity plays a role.

Question 25

lower intergiruty =

Answer 25

higher fraud risk

Question 26

fraud diamond by wolfe added....

Answer 26

added capability

Question 27

capability is

Answer 27

The fraudster’s skills, intelligence, confidence, and position.

Question 28

fraud pentagon expands triangle with

Answer 28

compentence and arrogance

Question 29

arrogance fraudsters

Answer 29

believe tjey are above rules

Question 30

richard c hollinger and john p clark studied

Answer 30

employee theft

Question 31

what did hollinger and clark find

Answer 31

employees steal primarily as a result of workplace conditions

Question 32

employee deviance

Answer 32

acts by employees against property

Question 33

does job satisfaction increase fraud

Answer 33

yes

Question 34

others of employee theft

Answer 34

poor corp culture stela when they believe they wont get caught

Question 35

MICE -- motivations of fraud perps

Answer 35

money ideology coercion ego

Question 36

2 most common in mice

Answer 36

money and ego

Question 37

2 types of fraudsters

Answer 37

situational and predators

Question 38

situational fraudsters

Answer 38

Law-abiding people who commit fraud under pressure.

Question 39

predators

Answer 39

complex frauds and schemes only need opportunity

Question 40

ABC analysis of white collar crime

Answer 40

bad apple -- indiivdual bad Bushel -- collusive fraud bad Crop --

Question 41

groups commit fraud through ....

Answer 41

collusion

Question 42

meta model of fraud

Answer 42

looks at both the thought process and the actual act of fraud

Question 43

left side of meta

Answer 43

how preds think of fraud

Question 44

right side of meta

Answer 44

how they act on fraud

Question 45

fraud triangle of action -- how it happens not why

Answer 45

execution concealment conversion