Scribd Logo
Upload

Welcome to Scribd!

  • 46 views

    Introduction To Fraud Examination

    Uploaded by

    Sins Wrath
    This document provides an introduction to fraud examination. It defines key terms like fraud, abuse, and occupational fraud. It outlines the differences between auditing and fraud examination in terms of timing, scope, objectives, relationships, and methodology. It discusses fraud theory and tools used in fraud examination. It also summarizes key research on occupational fraud, including Donald Cressey's fraud triangle and findings from the 2010 Report to the Nations on occupational fraud and abuse regarding costs, perpetrator demographics, initial detection methods, types of fraud, and associated losses.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Introduction To Fraud Examination

    Uploaded by

    Sins Wrath
    46 views24 pages
    This document provides an introduction to fraud examination. It defines key terms like fraud, abuse, and occupational fraud. It outlines the differences between auditing and fraud examination in terms of timing, scope, objectives, relationships, and methodology. It discusses fraud theory and tools used in fraud examination. It also summarizes key research on occupational fraud, including Donald Cressey's fraud triangle and findings from the 2010 Report to the Nations on occupational fraud and abuse regarding costs, perpetrator demographics, initial detection methods, types of fraud, and associated losses.

    Original Description:

    ini adalah ppt chapter1 fraud

    Original Title

    Wells3e_Ch01

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides an introduction to fraud examination. It defines key terms like fraud, abuse, and occupational fraud. It outlines the differences between auditing and fraud examination in terms of timing, scope, objectives, relationships, and methodology. It discusses fraud theory and tools used in fraud examination. It also summarizes key research on occupational fraud, including Donald Cressey's fraud triangle and findings from the 2010 Report to the Nations on occupational fraud and abuse regarding costs, perpetrator demographics, initial detection methods, types of fraud, and associated losses.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    46 views24 pages

    Introduction To Fraud Examination

    Uploaded by

    Sins Wrath
    This document provides an introduction to fraud examination. It defines key terms like fraud, abuse, and occupational fraud. It outlines the differences between auditing and fraud examination in terms of timing, scope, objectives, relationships, and methodology. It discusses fraud theory and tools used in fraud examination. It also summarizes key research on occupational fraud, including Donald Cressey's fraud triangle and findings from the 2010 Report to the Nations on occupational fraud and abuse regarding costs, perpetrator demographics, initial detection methods, types of fraud, and associated losses.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 24

    Chapter 1

    Introduction to Fraud Examination


    Learning Objectives
    • Define fraud examination and differentiate it from auditing.
    • Understand the fraud theory approach.
    • Define occupational fraud.
    • Define fraud.
    • Define abuse.
    • Know the difference between fraud and abuse.
    • Describe the criminological contributions of Edwin H. Sutherland.
    • Understand Donald Cressey’s hypothesis.
    • Give examples of non-shareable problems that contribute to fraud.
    • Understand how perceived opportunity and rationalization contribute to fraud.
    • Explain W. Steve Albrecht’s “fraud scale.”
    • Summarize the conclusions of the Hollinger-Clark study.
    • Summarize the results of the 2010 Report to the Nations on Occupational
    Fraud and Abuse.
    2
    Discipline of Fraud Examination
    • Resolving allegations of fraud from tips,
    complaints, or accounting clues
    – Documentary evidence
    – Interviewing witnesses
    – Writing investigative reports
    – Testifying
    – Assisting in the detection and prevention of fraud
    • Forensic accounting vs. fraud examination

    3
    Auditing vs. Fraud Examination
    Issue Auditing Fraud Examination
    Timing Recurring Nonrecurring
    Scope General Specific
    Objective Opinion Affix blame
    Relationship Nonadversarial Adversarial
    Methodology Audit techniques Fraud examination
    techniques
    Presumption Professional Proof
    skepticism

    4
    Fraud Examination Methodology
    • Predication
    – Totality of circumstances that would lead a
    reasonable, professionally trained, and prudent
    individual to believe a fraud has occurred, is
    occurring, and/or will occur
    – Fraud examinations must be based on
    predication.

    5
    Fraud Theory Approach
    • Analyze available data
    • Create a hypothesis
    • Test the hypothesis
    • Refine and amend the hypothesis

    6
    Tools Used in Fraud Examination

    Observation
    7
    Defining Occupational
    Fraud and Abuse
    The use of one’s occupation for personal
    enrichment through the deliberate misuse or
    misapplication of the employing
    organization’s resources or assets

    8
    Elements of Fraud
    • A material false statement
    • Knowledge that the statement was false
    when it was uttered
    • Reliance on the false statement by the
    victim
    • Damages resulting from the victim’s
    reliance on the false statement
    9
    Occupational Fraud and Abuse
    Research
    • Edward Sutherland
    • Donald Cressey
    – Cressey’s Hypothesis

    10
    Opportunity

    Fraud
    Triangle

    Pressure Rationalization
    11
    2010 Report to the Nations on
    Occupational Fraud & Abuse
    • Global survey
    • Measuring the costs of occupational fraud
    – 5 percent lost to fraud
    – $2.9 trillion worldwide

    12
    Position of Perpetrator

    13
    Median Loss by Position

    14
    Gender of Perpetrator

    15
    Median Loss by Gender

    16
    Department of Perpetrator

    17
    Median Loss by Department

    18
    Criminal History of Perpetrator

    19
    Median Loss per Number of
    Employees

    20
    Initial Detection of Frauds

    21
    Occupational Fraud and Abuse
    Asset Fraudulent
    Corruption
    Misappropriations Statements

    Conflicts
    of Interest Cash Financial

    Bribery Inventory &


    All Other Assets Nonfinancial

    Illegal
    Gratuities

    Economic
    Extortion
    22
    Frequency of Types of
    Occupational Fraud and Abuse

    23
    Median Loss of Types of
    Occupational Fraud and Abuse

    24

    You might also like