fraud Fraud according to Webster’s new world dictionary (2010) is the “intentional deception to cause a person to give up property or some lawful right.” The Association of Fraud Examiners (2009) define fraud as the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of employing an organizations resources or assets. Fraud, according to Adeniji (2014) is an intentional act by one or more individuals among management, employees or third parties, which results in a misrepresentation of financial statements. Fraud can also be seen as the intentional misrepresentation, concealment, or omission of the truth for the purpose of deception or manipulation to the financial detriment of an individual or an organization which also includes embezzlement, theft or any attempt to steal or unlawfully obtain, misuse or harm the asset of the organization, (Adeduro, 1998 and, Bostley and Drover 1972). Fraud has increased considerably over the recent years and professionals believe this trend is likely to continue. According to Brink and Witt (1982), fraud is an ever present threat to the effective utilization of resources and it will always be an important concern of management.
THEFT AND FALSE ACCOUNTING A person who makes or participate in making an entry which is or may be false, misleading or deceptive in a material specific, or who delete or concur in deleting or omitting a particular material, is treated as falsifying the account or document. It also means to destroy dishonestly, deform or erase, conceal any account or record or document which is made for any accounting objective or purpose, with a view to gaining for someone or oneself or with intention to cause loss to another. Fraudulent financial reporting can usually be laid to the existence of situation or conditions in either the internal environment of the business, or in the external environment. Excessive unrealistic pressure on management, such
Examples of cash skimming are unrecorded sales and understated sales and receivables. Examples of cash larceny are stealing petty cash and taking cash from the cash register. Fraudulent disbursement including billing schemes, payroll schemes, cheque tempering, expense reimbursement and register disbursement. Billing scheme such as an employee create false invoice and later paid by the employer. For payroll scheme may involve falsification of overtime hours, ghost employees, overstate commission rate and so
INTRODUCTION Unlawful or unfair gain by deliberate deception is termed in law, as fraud. Fraud is both a civil wrong (i.e., a fraud victim is eligible for monetary compensation and/may sue the perpetrator to avoid the fraud) and a criminal wrong (i.e., the fraud perpetrator can be prosecuted and subsequently imprisoned by governmental authorities). Fraud may have various purposes such as monetary gain or other benefits, like obtaining a driver’s license by way of false statements.  Fraud has a common occurrence in the buying or selling of property, including real estate, Personal Property, and intangible property, such as stocks, bonds, and copyrights. Fraud is criminalized by State and Federal Statutes, but not all cases rise to the level
This often happens in the UK. Not only theft that occurred in the UK by the workers, but also some things that ring true as false Theft Products and absences, for theft of product, employees had stolen from a warehouse customer product to sell on the internet site of the profit for themselves.
2) Embezzlement and fraud: There are two main traits that characterize almost every occupational crime. Occupational crimes almost always result in financial gain to the person committing the crime. Such crimes also harm the perpetrator's employer, usually through the loss of finances or assets. An occupational crime may be as minor as the theft of office supplies or as major as large-scale embezzlement of company
Fraud in the environment The accounting fraud that happened at WorldCom is a type of fraud that can take place at any company or organization. With accounting fraud, many people that are affected include the organization, employees, and investors. Different frauds can occur, such as system fraud, friendship fraud, and overpayment fraud. Accounting fraud is when someone purposely tries to manipulate and change the financial statements of a company or organization. “A company can falsify its financial statements by overstating its revenue or assets, not recording expenses and under-recording liabilities.” (Nickolas, n.d.) WorldCom purposely overstated its assets to be able to dip into them to increase profits so it would meet profit projections.
INTRODUCTION 1.0 Introduction This chapter contains background of the study, the statement problem, the purpose of the study, the research objectives and justification of the study. The statement of the problem explains more about fraud in organization and how it can be prevented. Internal auditors have responsibility of designing internal control systems, evaluating them and also advising the management of organization on the risk areas, loopholes and where systems need to be improved. 1.1 Background Fraud is an intentional actcommitted to secure unfair or unlawful gain this can be through corruption, stealing through books of accounts or inventories. Wilful fraud is a serious criminal case which calls for severe punishment.
This is a serious allegation with growth rates with businesses and companies that work with people that have an incorrect mindset relating to corruption and fraud. There has been many examples relating to corruption such as bribes to award a contract for a job or deals, favoritism in a community or workplace, nepotism, hiring a public officials unqualified relative to get a contract, using money that isn’t yours for personal gain linking back to what fraud is, price manipulation of products to gain extra wealth, selling products that aren’t genuine but said to be, racketeering conspiracy,
Good Corporate Governance serves to decrease corporate dangers and embarrassments. A set of principles is basically kept up by all organizations and all standards of moral practices are imparted to the stakeholders. Along these lines, this research paper would empower a superior comprehension of the moral and corporate governance issues tormenting a percentage of the best organizations of the world. Section 205 of the Companies act 2013, deals with the functions of a company secretary. Further, Rule 10 of the companies (Appointment and Remuneration of managerial personnel) rules, 2014 discusses how company secretaries help to control and direct the organization to accomplish world class