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CHAPTER 10: IDENTIFYING AND PREVENTING FRAUD, Nguyễn Ngọc Anh - Anh 1 ACCA…
CHAPTER 10: IDENTIFYING AND PREVENTING FRAUD
WHAT IS FRAUD?
REMOVAL OF FUNDS OR ASSETS FROM A BUSINESS
THEFT OF CASH
THEFT OF INVENTORY
FICTIOUS CUSTOMERS
COLLUSION WITH CUSTOMERS
BOGUS SUPPLY OF GOODS
PAYING FOR GOODS NOT RECEIVED
TEEMING AND LADING
MANUPULATION OF CASH BOOK
PAYROLL FRAUD
MISUSE OF ASSETS
INTENTIONAL MISREPRESENTATION OF THE FINANCIAL POSITION
MANIPULATION OF YEAR END EVENTS
UNDERSTANDING EXPENSES
FICTITIOUS SALES
GENERATION OF FALSE INVOICES
OVERCHARGING CUSTOMERS
SELLING GOODS TO FRIENDS
MANIPULATION OF DEPRECIATION FIGURES
OVERVALUATION OF INVENTORY
MANIPULATED INVENTORY BY DELIBERATE MISCOUNTING AT INVENTORY COUNTS
OMITTED DELIVERIES TO CUSTOMERS
RETURNS TO SUPPLIERS MAY NOT BE RECORDED
IMPLICATIONS OF FRAUD
REMOVAL OF FUNDS OR ASSETS
PROFITS ARE LOWER
BUSINESS HAS FEWER ASSETS
NET ASSET POSITION WEAKENED
RETURNS TO SHAREHOLDERS FALL
REDUCED WORKING CAPTITAL
CANT OPERATE EFFECTIVELY
COMPANY COLLAPSES IN SERIOUS CASES
INTENTIONAL MISREPRESENTATION
ARTIFICIALLY ENHANCED
RETAINED PROFITS LOW
INCORRECT DECISIONS
DISTRIBUTIONS TOO HIGH
SHORTFALLS IN WORKING CAPITAL
STAKEHOLDERS MISLED
RESULTS UNDERSTATED
LOAN FINANCE RESTRICTED
RETURNS MAY BE REDUCED
NEGATIVE PUBLICITY
LEGAL CONSEQUENCES
SHARE PRICE FALLS
FRAUD TRIANGLE
ELEMENTS
MOTIVATION
OPPORTUNITY
RATIONALIZATION
HOW TO PREVENT
DONT EMPLOY PEOPLE WITH PREDISPOSITIONS TO DISHONESTY
REDUCE MOTIVATIONS FOR FRAUD
REDUCE OPPORTUNITIES FOR FRAUD
MEASURES TO DETECT AND PREVENT FRAUD
GENERAL POLICIES
STANDARD PROCEDURES
LIMITATION CONTROLS
AUTHORISATION POLICIES
PHYSICAL SECURITY
EMPHASISING ETHICS
APPROPRIATE DOCUMENTATION
SEGREGATION OF DUTIES
TRAINING AND AWARENESS
PERSONNEL CONTROLS
RECRUITMENT PROCEDURES
COMPUTER SECURITY
RESPONSIBILITIES FOR FRAUD
ORGANIZATION
AUDIT COMMITTEE
EMPLOYEES
BOD
AUDITOR
Nguyễn Ngọc Anh - Anh 1 ACCA