Ch12 - Chapter 12: Fraud Schemes & Fraud Detection IT...

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IT Auditing & Assurance, 2e, Hall & Chapter 12: Fraud Schemes & Fraud Detection IT Auditing & Assurance, 2e, Hall & Singleton
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FRAUD TREE Asset misappropriation fraud 1. Stealing something of value – usually cash or inventory (i.e., asset theft) 2. Converting asset to usable form 3. Concealing the crime to avoid detection 4. Usually, perpetrator is an employee Financial fraud 1. Does not involve direct theft of assets 2. Often objective is to obtain higher stock price (i.e., financial fraud) 3. Typically involves misstating financial data to gain additional compensation, promotion, or escape penalty for poor performance 4. Often escapes detection until irreparable harm has been done 5. Usually, perpetrator is executive management Corruption fraud 1. Bribery, etc.
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ACFE 2004 REPORT TO THE NATION
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FRAUD SCHEMES Fraudulent financial statements {5%} Corruption {13%} Bribery Illegal gratuities Conflicts of interest Economic extortion Asset misappropriation {85%} Charges to expense accounts
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Ch12 - Chapter 12: Fraud Schemes & Fraud Detection IT...

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