Class Notes (839,296)
Canada (511,254)
Marketing (154)
MKT 2210 (46)

Chapter 6.docx

2 Pages

Course Code
MKT 2210
Subbu Sivaramakrishnan

This preview shows 80% of the first page. Sign up to view the full 2 pages of the document.
Chapter 6:Indentifying and preventing fraud Fraud may be generally be defined as “deprivation by deceit”.Fraud can fall into one of two main categories:removal of funds or assets from a business and intentional misrepresentation of the financial position of the business. Types of fraud in removal of funds or assets from a business include theft of cash,theft of inventory,payroll fraud,teeming and lading(theft of receipts from customers),fictitious customers,collution with customers,bogus supply of goods or services,paying for goods not received,meeting budget performance measures,manipulation of bank reconciliations and cash books,misuse of pension funds and disposal of assets to employees. Types of fraud in intentional misrepresentation of financial position of the business include over-valuation of inventory,bad debt policy may not be enforced,fictitious sales,manipulation of year end events,understating expenses and manipulation of depreciation figures. The three broad prerequisites for fraud are dishonesty,motivation and opportunity. Dishonesty is a subjective quality.Dishonesty is generally defined as an individual’s pre-disposition or tendency to act in ways that contravene accepted ethical, social,organisational and legal norms for fair and honest trading. Motivation.In addition to a general disposition or willingness to act dishonestly, an individual will still need a specific motivation to do so. This is likely to involve a calculation of whether a given action is worthwhile – this will take into account the potential rewards in relation to the potential sanctions or negative consequences of the action; the likelihood of being caught and the l
More Less
Unlock Document

Only 80% of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.