Please answer these questions final Whrd File Home Insert Draw Desin Layout Refe
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Question
Please answer these questions
final Whrd File Home Insert Draw Desin Layout References Mailings Review View Help Tell me what ynu want to do Share X Cut Times New R-16 A, A, Aa- Pasta fNormalTNu Spac .. Ileading .1 Heading 2 Tile SubLitle Subul Cr" Ermphasis Intense C Suung.lz Select cipbord Paregraph Styles Navigation 1. In your own words, define Fraud. Search the Internet for ain Search document example ofFraud or some Fraud statistics. Summarize the article analyze the statistics. How does this compute with your delinilion and understanding of Fraud? Headings Pages Resalts Create an interactive outline of your document It's a greal way to keep trak cf where yuu ate or quicktly move your content around. 2. Please discuss the Fraud Triangle. Explain why this concept is taught and how it is useful in a Fraud Examination. Heading styles to the headings in your dacumrnt. 3. Explain these statements: "Fraud Examincrs must scck to provc Fraud HAS occurred" and "Fraud Examiners must seek to prove Fraud HAS NOT occurred." 4. What is thc "Fraud Thcory Approach" to investigating Fraud? Why or why not is this an effective approach to investigating Fraud? 5. Consult the instructor's slides on "Fraud Prevention and Deterrenc" and review the profile of White-Collar criminals (see Slide 11). Do so research and reporl some statistics thal support or refute this profile. Page 1 of 1 13 words E Lnish Unted states 149 AM O Type here to search 1214/2017Explanation / Answer
1) Fraud is simply deceiving others for personal , professional or financial gain. One of the biggest frauds in indian history, is of Ramalingam Raju "Satyam's Chairperson".
Satyam was the fourth largest IT Company of India, its promoters inflated the revenues and profits, by showing non existent assets and cash reserve and unrecorded liabilities. This was propably done to drive the market price of co upwards. Due to minority shareholders wish for expansion of the company which ws not possible with the fake figures,the Chairperson came up with the shocking confession of the manipulations and frauds he has done, but before confessing the fraud, Ramalingam Raju sold his shares of Satyam at the highly infalted price. After the confession, the share price of Satyam came crashing down affecting thousands of minor investors.
So, Mr Ramalingam Raju and promoters of the company deceived thousands by manipulating figures, which resulted in there personal and financial gain but by duping many innocent people.
2) Fraud Triangle is the model designed to describe the reason as to why a worker commits workplace fraud. It was developed by a American sociologist Donal R. Cressey who worked alot in the field of criminology.It has three components:
(a) Pressure on Individual: which is the motivation for commiting fraud. It may be due to financial problems faced by the person (like gambling debts) which he cannot solve by legal or sanctioned ways and considers it unshareable with other person
(b) The opportunity to commit fraud: It is the stage in which the worker thinks of the clear course of action to defraud the company, by abusing his position. He thinks of the course of action that it would not be discoverable.
(c) The ability to rationalise the crime: In this stage, the fraudster thinks of reasons to make it acceptable and answerable to self morale compass. Many of the fraudsters are first timers who rationalise it with the thought of supporting family, solving the financial issues/ debts etc.
Business owners (TCWG) or the executives should take care of one of important component of fraud triangle "Opportunity to commit fraud"in order to keep control over fraud at workplace. It would be difficult to control individual pressures or rationalise the fraud, but limiting the opportunities to commit fraud can limit the fraud to some extent.
(3) A fraud examiner should begin fraud examination when circumstances suggest that fraud has occured , is occurring or will occur. If a fraud examiner cannot find good reason to investigate, he shoud not do it. In other words, if any new information he receives suggest the different circumstances, then the fraud examiner should revaluate the circumstances as fraud investigation proceeds.
There are 2 different perspectives for approaching fraud investigation. The fraud investigator must seek that the fraud (a) has occured and (b) has not occured. As per America's Asscoiation of Certified Fraud Examiners to prove fraud has occured, the fraud investigator must seek that the fraud has not occured and the reverse is also true. That to prove that a fraud has not occurred , the fraud investigator must seek that the fraud has occured. This is because under roof of law, the proof of fraud excludes any explanation other than guilt.
(4) As per Fraud theroy approach, the fraud investigator should develop a hypothesis (a theroy) as to what might have happened based on the facts available. On acquiring correct new information, the fraud examiner should test the hypothesis whether it is provable. If it is not provable the investigator whould alter the hypothesis and test it again and again until it becomes provable.
As per fraud theory approach the fraud investigator should not cotinue investigation if no reasons exists for collecting evidences. On the other hand it suggests fraud examiners to continue collecting evidences if it justifies to continue investigation.
There are no set protocols or generally accepted protocols for conducting fraud investigation. So the team of fraud investigators should develop there own set of protocols for each new case , investigation.
5) More info needed : Regarding the instructor's slide to be analysed.