MKT 2210 Lecture : Chapter 6.docx

• School: University of Manitoba
• Department: Marketing
• Course: MKT 2210
• Professor: Subbu Sivaramakrishnan

Document Summary

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 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. Opportunity. even if a person is willing to act dishonestly, and has a motive for doing so, he/she must still find an opportunity or an opening to do so.