Fraud activities there are multiple possible fraud

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Fraud ActivitiesThere are multiple possible fraud activities that would result in declining cash flows. Theexample with Calvin and Steve would contain vendor kickbacks and conflict of interest, as Calvin is using Steve’s supply companies to fill his own pockets. Examples involving the other employees would be fraudulent disbursement and larceny.Other fraud activities would include wiring money from the company’s account to their own account, or even forging checks on the company account. (Giles, 2012) Another example would be expense reimbursements that are artificially inflated through extra charges or false receipts. All of these will increase liabilities, which in turn decreases cash flows.
CASE STUDY THREE3ReferencesGiles, S. (2012). Managing fraud risk: A practical guide for directors and managers. Chichester, West Sussex: John Wiley & Sons Ltd.Schuchter, A., & Levi, M. (2016, April). The Fraud Triangle revisited. Retrieved from %3ai3h&genre=article&issn=09551662&ISBN=&volume=29&issue=2&date=20160401&spage=107&pages=107-121&title=Security+Journal&atitle=The+Fraud+Triangle+revisited.&aulast=Schuchter%2c+Alexander&id=DOI%3a10.1057%2fsj.2013.1&site=ftf-live

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