COMM 416 Lecture Notes - Lecture 2: Financial Statement, Mci Inc., Nortel
Document Summary
Lecture 2 and 3 types of fraud and their prevalence: Asset misappropriation is by far the most frequent forms of fraud, followed by corruption. Financial statement fraud is the most costly: asset misappropriation, cash: Skimming: theft of incoming cash before its entry into the accounting system i. e: employee who makes a sale but pockets the money w/o putting in till. Cash larceny: theft of incoming cash after it"s been entered into accounting system, e. g. employee steals from the till. *basically just theft of cash and equivalents (before or after[skimming]: inventory: Misuse: i. e: using company assets for personal use e. g: former ceo of tyco used company assets for condos, art and parties. Larceny (theft of property): problematic in organizations with small (portable) and expensive inventory) *basically theft of inventory or using it in the wrong way: fraudulent disbursments examples: Employee in ap sets up false vendor and fake invoices for payment for service not actually rendered.
