MGT120H5 Chapter Notes - Chapter 4: Credit Card Fraud, Insurance Fraud, Identity Theft
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MGT120H5 Full Course Notes
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Document Summary
Lockbox system a system of handling cash receipts by mail whereby customers remit payment directly to the bank, rather than through the entity"s mail system. Lapping fraudulent scheme where you steal cash through misappropriating customers payment and posting payments from other customers to cover it up. Fraud intentional misrepresentation of facts, made to persuade another party to act in a way that damages that party. Many fraud cases come from people in accounting, sales, upper management, or purchasing. Misappropriation of assets when employees steal assets from the company and cover it up with entries in the books (i. e. inventory theft, forging cheques, etc. ) Fraudulent financial reporting when company managers make false or misleading entries in the books to make financial position of the company appear better off (i. e. enron) We call this cooking of the books. Fraud triangle (what make up fraud) consists of: commits fraud. Motive the critical need or greed on part of person who.
