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Chapter 3: fighting fraud - Coggle Diagram
Chapter 3: fighting fraud
Fraud Prevention
Asses risk & develop concrete responses to mitigate risk and eliminate fraud chances
implementing appropriate preventive and detective controls
accurately identify sources and measuring risk
having internal and external auditors - independents check
create and maintain culture of honesty and high ethics
creating positive work environment
hiring right kind employees
Cost effective (reduce losses from fraud
Early fraud detection
proactively examining transaction records and documents
providing approach to report suspicion of fraud
by chance
Fraud Investigation
approaches
elements of fraud
Fraud Motivation Triangle
Pressure
Opportunity
Rationalize
Fraud elemnt triangle
Theft Act
Conversion
Concealment
types of evidence produced
Personal observation
by sensed (seen/heard/felt)
Physical evidence
tangible evidence - dishonest act
Documentatry evidence
gather from any source of documents (consist information)
Testimonial evidence
gather from individual
purpose
do the symptoms represent fraud or unintentional error?
to find the truth
Conducting
to establish the truth
must report all fairly and objectively
information are independently
Follow up legal action/resolution
choice
pursue no legal action
civil remedies
criminal action against perpetrators
civil action
to recover money /asset due to fraud
criminal action
law enforcement
fines, prison terms or both
restitution agreements