Forensic Organization Investigation
Theme 1 – Recap
Types of Fraud
Fraud can be described as generic term. It can be:
Staff embezzlement (taking company assets)
Management Scam (financial declaration fraud)
Buyer or customer scams (worthless investments)
Supplier fraud (collusion between buyers and distributors – or vendors acting alone and provide inferior quality products, overcharge, non-shipment for merchandise paid) Consumer fraud ( nonpayment; acquiring goods that will not have – customer behaving alone or collusion with company employee)
Criminal Law – prosecuted by government police force agencies Municipal Law – compensation of victims (evidence plaintiff > defendant)
Of course , companies might choose to not take action (because of reputation – yet this might lead to further scams - by simply fraudster or others in the organisation)
Role of Forensic Accountant
Underpinned by simply standards and guidelines – offering greatest practice construction for the profession To supply evidence defendable in tennis courts as well as extended roles in fraud elimination, detection and valuations in disputes (for example for each and every $ misplaced to fraud net income is usually reduced simply by $1 – company needs to replace loss of fraud (stock) as well as misplaced profit margin). Detailed operate – ‘forensic' exploration (adhoc investigative job – certainly not continuous guide, like audit) See Kirby paper and review the newest standard APES 215 for any general understanding
Topic two – Recap (important topic**)
This is a crucial topic and supplies the spine for the subject. Make sure you can understand this in detail and be able to understand the subtleties in practice. Each of our examples provide ‘obvious' illustrations. In the real life this detail might seem apparent to ‘outsiders' (and the forensic documentalist in their investigation) but for these working in the organisation – some of these symptoms or warning flags are less evident, only in hindsight.
The fraud triangle – identified pressure; recognized...