Fraud

Question 1

Define Fraud

Answer 1

Wrongful or criminal deception intended to result in financial or personal gain

Question 2

Can an accountant be accused of fraud if they accept a gift or inducement that then someone believes to affect their objectivity?

Answer 2

Yes because they have gained from it financially and/or personally.

Question 3

What are the three cases of fraud defined in the Fraud Act 2006?

Answer 3

Fraud by false reputation - where a person makes any representation which they know to be misleading

Fraud by failing to disclose information - where a person fails to disclose any information to a third party which he/she has a legal duty to disclose.

Fraud by abuse of position- where a person occupies a position where they are expected to safeguard the financial interest o another person, and abuses that position