Hoorcollege 1 Flashcards
Occupational Fraud
The use of one’s occupation for personal enrichment through deliberate misuse or misapplication of the employing organization’s resources or assets.
Asset misappropriations
The theft of assets.
Fraudulent statements
Statements in which companies are lying to their shareholders/investors.
Conversion
You are depriving the owner of their resources that were meant for work.
Embezzlement
You have access to the bank account/financial accounts, high position of trust with the organization.
Breach of Fiduciary Duty
Person at the highest position of trust who breaches their duties, you have to complete you responsibilities.
Forensic accounting
Anything you do that is going to end up in the court room.
Audit
The third-party reviewer for public statements on financial reports.
Predication
You have to have a good reason for your information, there has to be a logical statement for your investigation at each point on someone.
Fraud deterrence
Creating environments in which people are discouraged from committing fraud.
White-collar crime (Edwin H. Sutherland)
Criminal acts of corporations. Crime committed by a person of respectability and high social status in the course of their occupation.
The fraud triangle (Donald R. Cressey)
Pressure, opportunity and rationalization.
The fraud diamond
Adding capabilities to the fraud triangle.
The fraud scale (Dr. Steve Albrecht)
As long as someone’s personal integrity is higher than the opportunity and pressure for fraud, they are probably not going to commit the crime.
Bad Apple
Individual fraudster
