Fraud

Question 1

Types of Fraud

Answer 1

1. fraudulent financial reporting

2. misappropriation of assets

Question 2

Fraudulent Financial Reporting

Answer 2

occurs at the management level through intentional omissions or manipulations of amounts or disclosures with the intention of deceiving users and stakeholders

Question 3

Misappropriation of Assets

Answer 3

occurs at the employee level in relatively small amounts

Example: embezzlement, theft of small assets, theft of intellectual property and use of company assets for personal use

Question 4

Fraud

Answer 4

involves deliberate misrepresentation and the concealment of information. It is an intentional act involving the use of deception to obtain an unjust or illegal advantage

Question 5

Fraud Triangle

Answer 5

Incentives and pressures

opportunity

rationalization and attitude