CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
Financial fraud has increased considerably over the years and it is likely to continue if not adequately dealt with. Fraud has eaten deep into all sectors of the economy and it is sometimes seen as a normal way of life. The costs of fraud to businesses and the public is always estimated as many crimes go unreported.
Farlex Financial Dictionary(2012), defines fraud as any attempt to deceive another for financial gain. According to Andrew Beattie, fraud started as far back as 300 B.C., where Hegestratos a Greek merchant who tried to deceive an insurance company and drowned trying to escape when his crew passengers caught him in the act. Another incidence of financial fraud was the collapse of Enron company. Enron was one of the biggest company of its time whose fall shook the company. The fall was
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comm, 2002). Yet the level of awareness of forensic accounting is low even among Nigeria companies. The essence of this study is on how forensic accounting can be use in detecting and preventing financial fraud when fussed into conventional Nigeria business environment.
STATEMENT OF RESEARCH PROBLEM
Financial fraud can be broadly defined as an intentional act of deception involving financial transactions for purpose of personal gain( Bank Negara Malaysia). Due to the increase of financial fraud in Nigeria companies there is need for this fraud to be prevented to avoid its adverse consequence.
The impact of financial fraud in business organizations cannot be overemphasized. It has led many companies to liquidation and some to stagnation. It is against this landscape that the following questions will be raised:
Can forensic accounting minimize fraud in Nigeria companies?
Does forensic accounting increase the credibility of financial statements?
Should forensic accounting be encouraged in Nigeria?
OBJECTIVES OF THE STUDY
This study in specific terms, intends
There were many other instances of political corruption such as the Credit Mobilier scandal of 1872 which was a joint stock company organized to build the union pacific railroad scandal that exposed government officials for accepting bribes. The Tweed ring was another form of political corruption which was a group of corrupt politicians
One example was the Credit Mobilier scandal where major stockholders of the Union Pacific Railroad formed the Credit Mobilier company and sold their shares to influential congressmen. These executives essentially hired themselves and stole taxpayer money, a very lucrative scandal. Scandals like the Credit Mobilier were widespread and executives from many other railroad companies often stole from their own companies. Many executives would manipulate the rail companies' stocks to profit greatly. Executives would often bribe influential politicians, and work together to profit themselves.
The railroad system during the late 19th century made people millionaires overnight. An example of unethical behavior was the Crédit Mobilier scandal. During 1872 to 1873, the stockholders from Pacific Railroad created Crédit Mobilier to accept contracts to build the railroad for the United States Congress. (History.com Staff, 2010).This led to the Congressmen using their position to get rich quickly off the taxpayers money (History.com Staff, 2010).
JPMorgan Chase Bank has faced several lawsuits in recent years. They have been hit with cases concerning fraudulent misrepresentation, bribery, and many things in between. By studying the accusations the company has faced, one receives a better understanding of who is really handling their money. An act of fraudulent misrepresentation cost JPMorgan the fine of a lifetime.
CO4507 Digital Forensic Investigation Introduction Nowadays digital devices are everywhere in our life’s helping peoples in many sectors and providing possibilities to them. By pronounce the term “digital devices” the majority of the peoples thinking the computers, smart phones, tablets and the cloud applications. Now the digital devices are important not only in our work environment, or for entertainment and educational reasons, but are important because we can use them as digital evidence. Any kind of technology that processes information can be used in a criminal way vise versa can be used as digital evidence in the court.
The fraud triangle is made up by three distinguished elements. These elements in the fraud triangle consist of pressure, opportunity, and rationalization. The overall representation of the fraud triangle can be seen as the specific model to spot any type of high-risk unethical and fraudulent performances being conducted by a company, in this case Cendant Corporation. Cedant Corporations actions can be analyzed by the fraud triangle by the way that their senior management/top management decisions fell into the three categories of pressure, rationalization, and opportunity. Cendant Corporation had the pressure to comply with their shareholders and to maintain a stable financial status to prove that they were a profitable organization with a bright company image.
The methods used within the context of these instances provide as an example of the accounting, auditing, and investigative abilities necessary in the forensic accounting discipline. These investigations specifically highlight Wilson's ground-breaking and novel methods for financial vouching and tracing, use of handwriting analysis, and outstanding investigative due diligence. Today's forensic accounting combines accounting, auditing, and investigative work, and it is carried out by those who have obtained their Certified Fraud Examiner license. Wilson exhibited all three of these qualities in his work on the two significant investigations he oversaw while serving in the Intelligence Unit. Accounting is used for calculating net income, filing taxes, and registering assets.
economy and investor confidence” (FBI,2016). In short, Corporate fraud are crimes that a corporation does. This usually results in large sums of money being repaid back investors or people who had brought the case against them and will result in millions of dollars in settlements. Examples are corporations that are involved in “Deceptive financial practices, Cheating depositors, Overcharging customers, Failure to report safety defects, Ocean dumping and more” Phi Manttera, 2015).
During the history of the United States, there have been people who have tried to work behind the scenes in dishonest acts. For example, there have been companies and bank that were accused of taking people's money. People who have siphoned money from a person and into their
He also rationalized his fraudulent activities by hiding the customer’s late payment in order to be benefitted himself, but said that he was helping people more than he was helping himself. 2. Given that Mr. Pavlo’s fraud was restricted to an accounts receivable embezzlement scheme, what symptoms might auditors observe?
Credit card fraud is a type of identity theft where a hacker steals the credit card information of a user to purchase something or withdrawing money from banks. It’s a critical crime in United States (Sayles, 2012). Everything is online now from paying bills to online purchase, a user can do anything without going anywhere physically. Even user can open a financial account. Because of this criminal can hack the user’s personal information like name, date of birth, social security number.
Executive Summary Lehman Brothers were an investment bank involved in transactions worth billions of dollars and one of the most powerful investment banks in the world. Lehman Brothers collapsed in 2008 following bad investment in the sub-prime mortgage market and used bad accounting practices called Repo 105 transactions to try and cover up the bad assets. This report sets out the use of the fraud triangle when describing the actions which led to the collapse. The pressure applied on the bank, the opportunity due to the lack of regulation to carry out the actions and the ability of the bank to rationalise their decision making.
Carl Hanratty not only risks more embarrassment for himself and the FBI, but he also risks the potential loss of his job in his pursuit of capturing the wanted fraud criminal, Frank Abagnale. Abagnale also creates risks for himself; as every time he forges a new check he runs the risk of arrest as well as the peril of losing all the money he has previously ‘earned’. Despite the risk factors and dangers, Frank takes these chances in order to further his phony
Introduction The main objective of the paper is to develop a report for a shareholder that will interpret financial statements of Tesco Plc. for 2013-2014. The shareholder is specifically concerned about the fraudulent reporting. In this way, the paper will explain the reason of income statement and statement of financial position.
Throughout our planet’s history, human rights have been violated countless times, and very little efforts have been made to address these violations and protect the people’s rights. When greed grips on to people, they seem to forget all that is ethical. They are willing to sacrifice the lives of others for their own personal gain. Human rights violations in Nigeria are a perfect example of this. Oil companies have failed to respond to numerous cases of human rights abuses in the region.