It is an interesting topic because it educates on how to prevent, detect, and deter fraud from occurring (Krancher, 2011, P. 14). Fraud examination is not only used to review the financial data, but also involves using techniques such as interview, financial analysis, obtaining evidence, public searches, and forensic document examination. Most importantly, fraud examination involves finding evidence for a specific allegation; whereas, unlike auditing, professional skepticism is used to make an opinion about financial statement and other related information. Finally, categories of fraud are the third most interesting topic because it teaches how to identify the type of crime or fraud occurred. To name a few, asset misappropriation, corruption, and financial statement fraud are major categories of crime.
Furthermore, the Oxley act also mandated strict guidelines and reforms to improve the financial sector as well as the disclosures that corporations provide to the securities board in which would help prevent them from committing accounting fraud (Fbi.gov, 2017). This particular act was created, after major companies with public scandals such as Enron Corporation, and WorldCom committed fraud on its investors’. Such act will require legitimate confidence with financial statements as well as crucial penalties for financial crimes committed by companies or
The nominated officer (within UK financial institutions is usually the Money Laundering Reporting Officer (MLRO)) is responsible for evaluating the suspicious activity and report this to the Financial Intelligence Unit (FIU) within the National Crime Agency (NCA). Failure to disclose such incidents is an offence for the employees and the nominated officer of the regulated firm. The authorised disclosure form relating to any suspicious activity commonly known as a ‘SAR’ (Suspicious Activity Report) is completed, and it is submitted to the National Crime Agency (the “NCA”). Section 104 of the Serious Organised Crime and Police Act 2005 (SOCPA) brought in an amendment to the Proceeds of Crime Act 2002 (PoCA). This added a condition that legal obligations to report remain only if: ● the identity of the person is known ● there is knowledge of the whereabouts of the laundered property ● the information that is available would assist in identifying that person, or the whereabouts of the laundered property.
These profiles fall between psychology and law enforcement, some call it “investigative psychology” while another refers to it as “crime action profiling”. The main connection, the common goal they all share; help investigators examine evidence, narrow down a suspect pool, or give helpful tips on how to interrogate a suspect already in custody. Psychology is used to investigate behavioral patterns, personality traits, and psychopathologies. Demographic variables including age, race, and geographical locations are also used in the profiles. Recently criminologists, law enforcement officials, and psychologists have all teamed together to take criminal profiling, which started out as an art and transform it into a reliable science.
Identity theft is the act of stealing another person’s personal identifying information in order to gain access to his financial resources, or obtain access to other benefits, such as money, credit, or insurance benefits. Identity theft, sometimes referred to as “identity fraud,” is a crime that carries serious consequences. The act of fraudulently obtaining and using another person’s identifying information or personal financial documents, such as a credit card or bank account, usually for the purpose of financial gain. Identity theft laws are very strict, providing severe punishments for individuals convicted of the crime. Identity theft, according to the Federal Trade Commission (FTC), was the top complaint the FTC received for the past 15 years, increasing 47% from 2015 to 2016 as a result of a massive increase in
Forensic Technicians are responsible for many tasks, these include: • Keeping records and preparing reports detailing findings, investigative methods, and laboratory techniques. • Collect evidence from crime scenes. • Testify in court about investigative or analytical findings. • Use photographic or video equipment to document evidence or crime scenes. • Visit morgues, examine scenes of crimes, or contact other sources to obtain evidence or information to be used in investigations.
Types of white collar crime: Depending upon the type of people being affect and the methodology used to commit such crimes, white collar crimes can be divided into the following different types. Corporate Crime: Corporate crime can be termed as those crimes that are committed by a corporation or a business entity or by individuals that are acting on behalf of a corporation or business entity. Not necessarily the corporation itself needs to be involved it can also be committed by an employee of the corporation, if it benefits the corporation. Price Fixing: Price Fixing is an important tactic used by corporations when a limited number of controlling companies in a particular market follow the lead of their competitors in price increases. Overt
For examples such do the cyber crimes, entering and exiting a country illegally, marketing drugs, laundering money and any others crimes. There are several causes that can make the identity theft happen to someone. According to Odysseas Papadimitriou (2015), stated a several issues that can make the identity theft happen. First is the mail. The criminal can stole the victim mail and take the advantage to approve the credit card offer.
Sarbanes-Oxley Act (2002) Developed by U.S senator Paul Sarbanes and U.S representative Michael Oxley and enacted in 2002, the Sarbanes Oxley Act sought to delimit the increasing level of financial fraud. The sought enhance the accounting process by ensuring that the top management remained actively involved on an individual basis in the analysis and certification of the accuracy levels pertaining to company financial information. The Act was developed in an effort to reduce and consequently eliminate fraudulent financial activity incorporated by the accounting element in firms. The Act set up dire penalties pertaining to fraudulent financial activity, which was necessary following the Tyco International and WorldCom that led to the loss of billions in investor money as the financial scandals led to the depreciation of the share prices leading to consequent sock loss in
Paragraph 67 of PCAOB Auditing Standard No. 12 states that: The auditor 's evaluation of fraud risk factors should include evaluation of how fraud could be perpetrated or concealed by presenting incomplete or inaccurate disclosures or by omitting disclosures that are necessary for the financial statements to be presented fairly in conformity with the applicable financial reporting framework. Most likely, Qwest did not have this system or was not using it. Someone would have caught the mistake and corrected it in order to comply with accounting and auditing standards. Conversely, it is possible that the information was to fully disclosed in order to trick investors on