AutoRecovery save of White Collar Crime a Form of Occupational Fraud.doc

According to wells 2013 key to understand the fraud

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According to Wells (2013) key to understand the fraud triangle is that all three factors must be present for a fraud to exist. As fire cannot exist without fuel, oxygen, and heat; a fraud cannot exist without motive, opportunity, and rationalization. Therefore if a person has unlimited motive but no opportunity, he or she cannot commit fraud. If a person has opportunity but doesn’t need the money, the fraud is unlikely to occur. Should an individual have both motive and opportunity but cannot salve his or her conscience through rationalization, the crime will most likely not be committed. In addition Cressey listed six types of “nonshareable” problems that provoke fraud: inability to pay debts, problems resulting from personal failure, business reversals, physical isolation, status gaining, and employer employee relations. Individuals rationalized their crimes as noncriminal, justified, or as part of an environment over which the offender had no control. The opportunities for fraud are always myriad, though the lack of internal controls over funds is a chief factor. Removing temptation remains the best deterrent of all. Lastly, within the fraud triangle framework there are at least three general ways of preventing fraud a) by altering the motives of individuals b) limiting the opportunities for secretly gaining funds, c) undermining the rationalization of the suspect through interrogation.
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WHITE COLLAR CRIME 6 Edwin Sutherland Interestingly, Edwin Sutherland was one of the first criminologists to apply criminal thinking to high-level corporate misconduct and responsible for coining the term white-collar crime more than 70 years ago. In Principles of Criminology and White-Collar Crime, Sutherland developed his theory of differential association. He asserted that people learned how to be criminals by interacting in close association with other criminals. As summarized by David Friedrichs, “Sutherland largely ignored social structural factors (for example, capitalism, profit rates, and business cycles). He failed to make clear-cut distinctions among white-collar crimes, and he did not adequately appreciate the influence of corporations over the legislative and regulatory processes. Furthermore, two other criminologists Marshall Clinard and Richard Quinney published Criminal Behavior Systems (1973) to argue that white-collar crime could be divided into two types: corporate crime and occupational crime. They focused their attention on illegal behaviors committed by corporations, companies and businesses hence their definition of occupational crime as “violations of legal codes in the course of activity in a legitimate occupation”. Albrecht, Howe, and Romney Dr. Steve Albrecht, Keith Howe, and Marshall Romney, studied frauds in corporate settings in Deterring Fraud: The Internal Auditor’s Perspective. They classified nine motivators of fraud. 1.
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  • Fall '13
  • white collar, Enron Corporation

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