COMM-1107EL Chapter Notes - Chapter 4: List Of The Shield Episodes, Accounts Receivable, Petty Cash
14 Mar 2017
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Document Summary
Fraud is an intentional misrepresentation of facts, made to persuade another party to act in a way that causes injury or damage to that party. There are many types of fraud, some examples are: insurance fraud, cheque forgery, credit card fraud, and identity theft. Misleading entries in the books of a company is called cooking the books. The fraud triangle includes elements that make up virtually every fraud, these are: motive usually results from either critical need or greed on the part of the person who commits the fraud. Sometimes, it"s just a matter of never having enough: opportunity the opportunity to commit fraud usually arises through weak internal controls, rationalization the perpetrator engages in distorted thinking, i deserve this , nobody treats me fairly, etc. The perpetrators of fraud usually do so for their own short-term economic gain, while others incur economic losses that may far outstrip the gains of the fraudsters.
