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The Pros And Cons Of Fraud

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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. ISA 240 ‘The Auditor’s Responsibilities to Consider Fraud in an Audit of Financial Statement (Revised)’ refers to fraud as “an intentional act by one or more individuals among management, those charged with governance, employees or third parties, involving the use of

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