chapter 7 Flashcards
what is fraud
A material false statement
Knowledge that the statement was false when it was spoken
Reliance on the false statement by the victim
Damages resulting from the victim’s reliance on the false statement
-0-=- major categories of fraud
asset misappropriation
financial statement fraud
corruption
white collar crime
common fraud schemes
larceny
skimming
bribery
conflict of interest
fraudulent financial statements
forensic accounting
accounting to detect and prevent financial crime
forensic accounting skill set
technical
critical thinker
investigate proficiently
fraud perpetrator profile
male
well educated
middle age to retired
accountant, upper management
with company for over 5 years
acts alone
never been charged or convicted
family family and religious
what is mice
money
ideology
coercion
ego
what is the fraud triangle
perceived pressure
opportunity
rationalization
what is professional skepticism
knowing that fraud may be there
and an attitude that questions everything
what are the red flags
unexplained accounting anomolies
exploited internal control weaknesses
observed extravagent lifestyles
observed unusual behavior
anomalies communicated via tips and complaints
fraud risk factors
motivational
situational
behavioral
elements of fruad
act
conversion
concealment
investigation steps
document analysis
interview neatural third party witness
interveiw corroborative witnesses
interview co conspirators
catch target
teamwork and leadership
competence
character
professionalism
what is larceny
stealing with the intent of not giving back
