Fraud is usually committed because the perpetrator

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Fraud is usually committed because the perpetrator needs additional funds in their budget. This provides the motivation leg of the fraud triangle. (Schuchter & Levi, 2016) Watching a person’s behavior is therefore a good clue for catching fraud. The perpetrator might have a child that just started attending an expensive private school, or suddenly has a love interest with expensive tastes, or something similar. Whatever it is, it will not be small. Most people don’t commit fraud to get an extra pound of hamburger for their family’s dinner – they will start buying steak and lobster instead. Any sudden and significant increase in a person’s spending habits is a good indication of fraud.
SHORT ANSWER PROBLEM SET 3 Detecting Kickback A database is good for collecting and collating data. It can be used to spot trends and anomalies. When looking for kickbacks, both trends and anomalies should be examined. As one example, Livent had outside associates purchase tickets which were later reimbursed (and recorded as payments for fixed assets). (Jackson, 2015, p.171) Each person who was reimbursed would generate a payment of the same amount as what was paid for the tickets. Therefore, the database can match those numbers up and flag them as suspicious.

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