SJSU BUS1 124 - Organizational Fraud (19 pages)

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Organizational Fraud



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Organizational Fraud

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Lecture Notes


Pages:
19
School:
San Jose State University
Course:
Bus1 124 - Forensic Accounting

Unformatted text preview:

Today s Topics Organizational Fraud Consumer Fraud FORENSIC ACCOUNTING BA124 2010 Slide 12 1 Occupational Fraud What is it Fraud against companies other than financial statement fraud Asset misappropriations Corruption Know the graphics on pps 506 514 516 FORENSIC ACCOUNTING BA124 2010 Slide 12 2 Occupational Fraud Statistics Median loss 159K 25 1 0M 1 1 0B Organizations with hotlines had 50 less median loss Small business has higher median loss 190K poor pro active effort Executive involvement 1 0M median loss 30 involved accounting dept 20 involved upper and executive management Only 8 of fraudsters had prior convictions FORENSIC ACCOUNTING BA124 2010 Slide 12 3 Asset Misappropriations Stealing receipts Stealing assets on hand Employees customers collusion Employees Stealing through disbursements Employees vendors collusion FORENSIC ACCOUNTING BA124 2010 Slide 12 4 Thefts of Cash Larceny Skimming Fraudulent disbursements FORENSIC ACCOUNTING BA124 2010 Slide 12 5 Larceny Theft of recorded cash w o consent Cash shortages 14 2 of all misappropriation frauds Easy to detect FORENSIC ACCOUNTING BA124 2010 Slide 12 6 Skimming Sharing cash receipts Sales not recorded Fraudulent discounts Customer payments and write offs Lapping Collusion with customers FORENSIC ACCOUNTING BA124 2010 Slide 12 7 Fraudulent Disbursements 67 of all asset related frauds Check tampering Register schemes Check modification check forgery False refunds false voids Inventory problems Billing schemes Dummy cos 2X paying personal use FORENSIC ACCOUNTING BA124 2010 Slide 12 8 Fraudulent Disbursements continued Expense schemes Cheating on your expense report Payroll schemes Only 1 9 of all losses Ghost employees false hours rates commission scams and false worker compensation claims FORENSIC ACCOUNTING BA124 2010 Slide 12 9 Thefts of Assets Borrowing for personal use Personal business on company time Outright theft of assets Larceny involving inventory Unauthorized transfer of assets with forged



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