MGT120H5 Lecture Notes - Lecture 5: Remittance, Phishing, Cash Register

• School: UTM
• Department: Management
• Course: MGT120H5
• Professor: Kathy Falk

Document Summary

International misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury/damage to that party. Huge problem and is getting bigger (worldwide: 2 most common types of fraud that impact financial statements are: Ponzi scheme (get people to invest money you use to pay off another person, then get more investors to pay off previous investors, etc. ) 2) fraudulent reporting: company usually finds out because they are losing money (thinking they"re losing sales/going bankrupt) and therefore investigate/audit and find the thief. Policies and procedures of company designed to safeguard assets. Primary way fraud and errors are: prevented, detected, corrected. Management and board of directors implement a: plan of organization, system procedures. Objectives: safeguard assets, encourage employees to follow policy, promote operational efficiency, ensure accurate, reliable records, comply with legal requirements. Sox (sarbanes-oxley act: regulated corporate governance (passed by us congress)