Key Elements For Commit Fraud - 1673 Words

Elements There are five elements needed to commit fraud: (1) a false statement containing material fact, (2) the defendant possesses the knowledge that the statement is untrue, (3) the false statement’s intent is to deceive the intended victim, (4) the intended victim justifiably relies on the statement, and (5) the ending result is financial injuries to the intended victim. All false statements do not constitute for fraud; it needs to contain a material fact. The materiality of the statement induces the intended victim to agree to something with the defendant. Statements of belief (puffing) are not considered fraudulent since there are no legitimate statement of fact. For example, Joe goes to buy a car and the dealer says the Prius†¦show more content†¦Corporate governances work as a principal catalyst for stakeholders to raise corporate awareness and expectations regarding appropriate behavior and practices. Stakeholders use their fraud knowledge to contribute to the c ompany’s Code of Conduct and Code of Ethics for management and employees as well as participate in risk mitigation efforts. Stakeholders can also participate in boards that create programs that focus on the prevention, detection, and deterrence of criminal and fraudulent acts. The goal of the programs is to ensure that everyone is making the right decisions in the workplace (Managing the Business Risk of Fraud: A Practical Guide n.d.) Theories of Crime Causations There are three theories of crime causations: (1) the strain theory, (2) the control theory, and (3) the social learning theory. However, there are also biological causation of crimes which are further broken down into psychological, economic, and political theories. Understanding the sociological causes of why fraud is committed helps fraud investigators identify perpetrators and the crime. Sociological theories enable fraud investigators to learn how a white-collar criminal’s social environment impacts his or her desire to commit a crime. Each theory focuses on the common social environments like family, workplace, and community, but they are also very different. They eachShow MoreRelatedFinancial Fraud, And Identification Of The Different Fraud Types1734 Words   |  7 Pagestypes of fraud, in order to aid understanding in regards to the prevention of fraudulent activity. This paper begins with a review of the definition of financial fraud, and identification of the different fraud types. Further, included is an examination of what motivates individuals to commit fraud, including an identification of some of the method in which people commit fraud. A discussion of the importance of the fraud triangle, and how rationalization contributes to fraud is a key area of focusRead MoreOrganizations Can Easily be Taken Advantage of by the Fraud Triangle784 Words   |  4 Pagesclients and break the law. The best example can be illustrated in the fraud triangle which gives more explanation of why people commit fraud. The fraud triangle is divided into three parts which are the followings: Perceived Opportunity, Pressure, and Rationalization. According to Cressey, the most important part of the fraud triangle is pressure which is known as perceived non-shareable financial need. A person commits a fraud because he or she might have some financial pressure in their familyRead MoreThe Corruption Of The Fraud Triangle1640 Words   |  7 Pageslikel ihood of fraud increases when the three elements of the fraud triangle come together. Analyze how the three elements of the fraud triangle are important and how all three elements were present in Helen’s case. The three elements of the fraud triangle are Motivation or Pressure, Opportunity and Rationalization. After reading the case, it was revealed that all of the three elements are present the Helen’s fraudulent activities. Motivation: This is a reason for why the fraudsters commit frauds. It providesRead MoreFraud Triangle And Red Flags1485 Words   |  6 PagesOption #1 - Fraud Triangle and Red Flags Plutonium entered the Internet start-up boom in 1988. It experienced rapid growth that resulted in a haphazard information technology (IT) system in which pieces of technology were implemented quickly leaving poor integration and data integrity. To strengthen data integrity and create an integrated IT system, the organization installed a billing system, Gateway, which required testing utilizing an imitation yet live credit card number to test the softwareRead MoreFinancial Statement Fraud : A Perfect Fraud Storm1304 Words   |  6 PagesFinancial statement fraud is something that has become more commonplace than it should be. Many different events will often lead up to a rash of companies participating in financial statement fraud. Between the year 2000 and 2002 there were a number of factors that led to what appeared to be a perfect fraud storm according to our text (Albrecht, Albrecht, Albrecht, Zimbelman, 2012). Nine of those will be looked at here. It will also be discuss ed as to what some of the common ways financialRead MoreFraud Risk Assessment1083 Words   |  5 Pages | Fraud Risk Assessment | | Fraud Risk Assessment | Fraud risk assessment is a process intended at proactively identifying and addressing an organization’s vulnerabilities to internal and external fraud. The fraud risk assessment is more of an art than a science. Every organization is different therefore what gets evaluated and what is assessed depends on the organization. Fraud risk assessments are an ongoing, continuous process rather than just an activity. A fraud risk assessmentRead MoreMACC program1548 Words   |  7 Pagesand help ensure that plan information is complete and accurate, financial statements are reliable, and that the plan complies with laws and regulations. Part 2: The Plot Thickens 1) At what point should the Internal Audit Department suspect a fraud? What actions should be considered to ensure that professional auditing standards are met? Whom does the Internal Audit Department need to inform? When doing audit, the auditors should have a professional skepticism on each transaction. In the caseRead More‚Äà ²Marxism Is No Longer Relevant to Our Understanding of Crime Deviance in Society‚Äà ´1269 Words   |  6 Pagesdole fraud are 14,000 annually and cost the British economy  £500 Million, while tax fraud costs  £5 billion to the economy, but annually there are only 20 prosecutions. It could be argued that tax fraud is much more profitable than dole fraud; however, Marxist’s would argue tax fraud is a White-Collar crime and therefore performed mostly by the upper class that have the power and money to either have their ‘crimes’ go undetected or can afford a top defence to help them ‘get off’ the tax fraud chargeRead MoreThe North Face, Inc Case Essays665 Words   |  3 Pagesrevenue until the revenue has occurred. Barter transaction is the transaction that a company receives trade credits in exchange for merchandi ses, it should be recorded at the fair value of the merchandise given up. Though the exchange value of this element is recognized, the fair value on the excess merchandise that was sold to the barter company was clearly questionable. And a large portion of the 9.3 millions dollars that was recorded for the consignment sales was improper because it violated SFASRead MoreSarbanes Oxley Act of 2002 Essay1294 Words   |  6 PagesSarbanes-Oxley Act of 2002 ACC/561 Sarbanes-Oxley Act of 2002 Following a number of discovered fraud scandals committed by well-known corporations and in order to restore public confidence in the stock market and trading of securities, the United States congress passed the Sarbanes-Oxley Act in the year 2002. As a result of the act endorsement by the New York Stock Exchange and the Securities and Exchange Commission, among many other national overseeing committees, a number of rules and regulations