MBA 590 Chapter 3 - Quentin Stephens MBA 590 09/10/08...

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Quentin Stephens MBA 590 09/10/08 Questions 1. Fraud prevention is important because it is necessary to reduce the amount of fraud that is committed. 2. Having a culture of high ethics and honesty helps to reduce the culture of fraud by showing what would happen to those who are dishonest. When a company hires the right kind of employee, an employee that has a since of ownership is the company, this helps reduce fraudulent activity. 3. A company assesses and mitigates risk of fraud by implementing programs that can be evaluated and monitored to reduce risk. When the proper controls are in place such as effective accounting system fraud is deterred. 4. When fraud is detected early, the amount lost is reduced. Also, the longer fraud is committed by the crook, the harsher the penalties will be once the crook is caught. The damages to the victim could be harsh if the fraud is not caught early. 5. If fraud is suspected it is important to conduct a thorough review in order to (a) avoid wrongly targeting innocent people, (b) gather sufficient factual evidence about the suspected fraud, (c) ensure a complete report of all the facts and circumstances, both incriminating and exonerating, is prepared. Shorts cases
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This note was uploaded on 10/07/2008 for the course MBA AND EC 590 and 52 taught by Professor Gordonandstanford during the Fall '08 term at Ill. Chicago.

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MBA 590 Chapter 3 - Quentin Stephens MBA 590 09/10/08...

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