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Audit Fraud

In: Business and Management

Submitted By mashiyat
Words 1831
Pages 8
Chapter seven: fraud risk assessment
Definitions related to fraud * White collar crime: Misdeeds committed by business and government professionals, typically non violent * Fraud: in a financial statement audit team, an intentional act by one or more individual amount management, those charged with governance, employees or third parties, involving use of deception to obtain an unjust or illegal advantage is knowingly making material misrepresentations of fact, with the intent of inducing someone to believe the falsehood, act upon it, and thus suffer a loss or damage. * Employee fraud: the use of dishonest means to take money or other property from an employer it consist of three phases: 1. The fraudulent act, 2. The conversion of the money or property to the fraudster’s use, 3. The cover up * Embezzlement: fraud involving employees for non-employees wrongfully taking money or property and trusted to their care, custody, and control; often accompanied by false accounting entries and other forms of lying and cover up * Defalcations: fraud in which an employee takes assets such as money or property, from an organization for personal gain; may be due to correction or asset misappropriation * Fraudulent financial reporting : intentional manipulation of reported financial results (by manipulation of accounting records for supporting documents, misrepresentation or omission of significant information, or intentional misapplication of accounting principles) to portray eight misstated economic picture of the firm by which the perpetrator seeks an increase in personal wealth gain through a rise in stock price or compensation * Errors are unintentional misstatements or omissions of amounts or disclosures in financial statements. * Fraud are intentional misstatement or omissions in financial statements, including fraudulent...

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