Case Study 1 Fraud Essay

Fraud examiners use interview techniques to achieve investigation objectives, obtain evidence and abide the legal aspects pertaining to a case. Investigation objectives are important to be analyzed as it outlines the links of the investigation. Understanding investigation objectives assists in understanding the gaps of the investigation and the strategies that must be implemented. Further investigations are needed when investigating a case to understand fact from fiction and compare any inconsistencies. Interview techniques are strategic procedures that focus on several factors prior to an interview by outlining the interview’s purpose, types of questions, the setting and establishing rapport with the interviewee.

The organizations audit controls and internal controls must be reviewed and changed so that the fraud and misappropriation of funds can be handled and bring back the integrity of the company.

No company wants to be expose to acts of accounting fraud. Fraud can take place in any department and at any position within the organization due to the increasing motivations such as incentives, pressures, and opportunities are major factors contributing to fraud. The following are a few types of accounting frauds: payroll fraud, invoice fraud, accounts payable fraud, accounts receivable fraud, financial statement fraud, and tax fraud. An external financial statement audit does not necessarily guarantee that once it is completed that the audited company has no type of fraud but it reassures the audited company that the financial statements are fairly

1. In my opinion, non-shareable financial need is the most important in causing executives, managers, and employees to commit occupational fraud. The proxies become “criminals on trust” in the case of they start to have financial difficulties, which they cannot share with nobody. They think that available option to perform completely secret financial fraud and able to give an explanation to their behavior in a given situation, allowing to reconcile presenting itself as an reproof trust the people and how user entrusted funds or property.

Fraud costs the Australian economy approximately $3 billion annually (Standards Australia 2008), and its frequency and financial impact continues to grow (Standards Australia 2008 ; KPMG 2008). Many organizations are poorly prepared to prevent and detect fraud (KPMG 2009 ; KPMG 2008 ; KPMG 2007 ; KPMG 2004). Fraud prevention is not perfect therefore, fraud detection is crucial. Fraud detection strategies are intended to quickly and efficiently identify those frauds that have circumvented preventative measures so that an organization can take appropriate corrective action (Standards Australia 2008). Occupational fraud is divided in three categories. The production of fraudulent statements is most of the time orchestrated at executive-level,

Internal Control is a system of checking balances and it is designed to provide a reasonable assurance that assets are protected. Then, accounting data must be accurate according to the information of accounting. Operations should be efficient and also law and policies are compiled with. For this company (Goodners Brothers), We noted that weaknesses in internal control of this company make employee of this company, Woody Robinson was in serious financial trouble. So, the employee took advantage of his company’s weak internal controls by stealing a large of inventory, which

This is achieved by inflating the company’s assets, net earnings, and/or equity. To understate liabilities the company would not record accrued liabilities or accounts payable, service or warranty liabilities, loans (or keep liabilities completely off of the company books), contingent liabilities, and record unearned revenues as earned revenue.

A client has requested information on the prevention and detection of accounting fraud. The research paper will cover descriptions of types and components of fraud. It will offer suggestions as to who would commit fraud and how it would be detected and prevented. The research paper should provide a general overview of the subject in layman 's terms.

As much as $40 billion are lost every year due to flourishing computer crimes. In 1993 alone, Internet, the world wide system of computer networks, was swindled out of approximately $2 billion, and about $50 million were stolen from various companies such as GTE Corp., AT&T, Bell Atlantic and MCI ( Meyer and Underwood 45). Ironically these same organizations have been collaborating with software manufacturers for an expanded software production ( Cook 53 ). Multinational corporations and international authorities are threatened by these innumerable white collar crimes since such crimes are most difficult to prevent, and/or detect and highly profitable to the offenders ( Stern and Stern 525 ). This ever growing menace to

Prepare a two-to-three page case study report on the following case: COVER STORY: INTERNAL FRAUD on pages 104-106 in Chapter 4: Billing Schemes of the Fraud Examination text by Wells. Discuss the coincidences involved in this case study. Use the 2009 Global Fraud Survey (also located in Doc Sharing) for references concerning perpetrator, size of fraud, detection, and controls.

One of the main assets of an organization is the accounts receivable department. It is a vital part of the organization. The information collected from start to the complete of the accounts receivable cycle is important in making sure every step was followed according to the proper procedures made by the organization. Setting up new customers in the database system correctly is important when the credit and billing process takes place. When customer orders are made on the customer’s account proper authorization is needed to safeguard unauthorized orders and the ability to pay for good received (Louwers, Ramsay, Sinason, & Strawser, 2007).

Management is aware of the increased requirements for a public company to maintain a system of internal control to help prevent and detect fraud. The CEO, Mary Moore, is also interested in using a proactive posture toward

Time is critical when fraud occurs. Unless you are actually engaged in performing a forensic audit, looking for waste or internal control weaknesses in the client’s systems, there is no time to plan out a fraud examination in detail beforehand. In most cases, covert activities must be used by the fraud examiner to negate detection by the perpetrator before evidence is destroyed.

A Ponzi scheme is a type of fraud called investment fraud. It, “involves the payment of purported returns to existing investors from funds contributed by new investors” (6). Investors are usually promised a high return rate. The fraudsters attract new investors and pay back their old investors with the new investor’s money. Ponzi schemes are named after Charles Ponzi who created scheme by getting residents to invest in a postage stamp scheme. Bernie Madoff is a well known and not well liked Ponzi scheme fraudster. He is currently in federal prison. These types of fraud schemes hurt hundreds or millions of individuals and families.

INTERNAL CONTROL AND FRAUD DETECTION IN THE BANKING INDUSTRY (A CASE STUDY OF GUARANTEE TRUST BANK PLC)