Chapter 14 : Fraud against Organization

Fraud statistics

Loss

Detection

occupational fraud & abuse impose enormous cost on an organization

Occupational fraud schemes can be very difficult to detect

Prevention

Anti-fraud Control

internal audit department

Surprise audit

anti audit training

Organization Size

Median loss for small org and largest org was sane (but it has greater impact toward small org)

fraud committed by someone with big position costly than someone with small position

Asset Misappropriation

Cash

Inventory/other assets

Larceny

Fraudulent disbursement

Skimming

Misuse

Larceny

Cash is stolen by employees/after cash is recorded in co. accounting system

Circumstances where the employees has access to cash

Cash is stolen before it is recorded in the system

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