Chapter 4 Preventing Fraud
3 factors that help create a culture of honesty, openness, and assistance:
1. Hiring honest people and providing fraud awareness training
2. Creating positive work environment (having well defined code of conduct, having an open
Chapter 1 The nature of Fraud
Seriousness of the Fraud problem
It may seem like fraud is increasing, but it is hard to really tell. It is impossible to know what percentage
of fraud perpetrators are caught. There are many frauds that are quietly settled a
Chapter 7 - Investigating Theft Acts
When Should You investigate Fraud?
Consider the following factors:
strength of the predication: Does it seem real?
cost of the investigation
exposure or amount that could have been taken
the signal that investigation o
Chapter 8 Investigating Concealment
Concealment: Perpetrators must conceal their fraud by covering their tracks, obscuring evidence, and
removing red flags where possible. This is accomplished by manipulating documentary evidence
For an electronic perspec
Chapter 2- Why people commit fraud ESSAY QUESTION: KNOW EVERYTHING ABOUT FRAUD TRIANGLE
Who commits fraud - Anyone!
Fraud perpetrators cannot be demographically or psychologically differentiated, they usually have the
profile of other honest people.
Chapter 5 Recognizing symptoms of fraud
Symptoms of fraud can be separated into six groups:
1. Accounting anomalies: result from unusual processes or procedures in the accounting system.
They involve irregularities in source documents, Faulty journal entr
Chapter 6: Data-Driven Fraud Detection
Data-Driven Fraud Detection: Using database queries and other methods to determine if fraud exists.
Example: A common scheme is for people to purchase SSN in order to obtain drivers license or
employment. By comparin
Chapter 3 Fighting Fraud
Organizations fight fraud by implementing:
1) Fraud prevention- It is the most cost-effective way to reduce fraud. It involves two fundamental
a. Sustain a culture of honesty and high ethics
b. Asses the risks of fraud