Types of Fraud - Types of Fraud: 1. Employee embezzlement...

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Types of Fraud: 1. Employee embezzlement 2. Management fraud 3. Investment scams 4. Vendor fraud 5. Customer fraud Fraud Triangle: 1. Perceived Pressure 2. Perceived Opportunity 3. Rationalization Financial Pressures: 1. Greed 2. Living beyond one’s means 3. High bills or personal debt 4. Poor credit 5. Personal financial losses 6. Unexpected financial needs Pressures : 1. Financial pressures 2. Vices 3. Work related pressures 4. Other pressures Opportunities: 1. Lack of or circumvention of controls that prevent of detect fraudulent behavior 2. Inability to judge quality of performance 3. Failure to discipline fraud perpetrators 4. Lack of access to information 5. Ignorance, apathy, and incapacity 6. Lack of an audit trail Control activities: 1. Segregation of duties or dual custody 2. System of authorizations 3. Independent checks 4. Physical safeguards 5. Documents and records Control Environment: 1. Management philosophy and operating style, modeling 2. Effective hiring procedures
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Types of Fraud - Types of Fraud: 1. Employee embezzlement...

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