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Forensic Accounting

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Fraud committed on behalf of an organization vs. fraud committed against an organization Fraud commuted on behalf of the organization entails a section of the organization’s employees especially the senior management engaging in activities that are meant to benefit the company but in reality cause serious issue to the larger society the group is supposed to serve. An example of these types of frauds is false bidding scheme that refers to situations that a firm pretends to have followed the bidding system although practically the bidding did not take place. One party is allocated the bid before they are received for evaluation although other parties are invited to offer and as such, it is a form of collusion between a contractor and the party giving the contract (Albrecht, Howe & Romney, 1984). Another example of fraud committed on behalf of the organization is the financial date restatement by the company’s finance department in conjunction with the senior management. While it is usually an acceptance of the accounting errors on the part of the company’s financial team, it can result in financial mistakes in the application of the accounting principles, mathematical errors and the misuse of the financial acts (Ferris, 2013). Another example is in the case of an audit examination of the US banking institutions that according to research by the Bank Secrecy Act, most of these institutions are not performing well but the same is not revealed to the customers and the public and as such, it is only the top management that are aware of the happening. Such tendencies amount to corporate crime because the government through the Troubled Asset Relief Program ends up lying to the public about the amount of taxpayers’ money that is used for bailing out the troubled financial institutions. Overall this type of fraud

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