Premium Essay

Fraud Additional

In: Business and Management

Submitted By gelatinnoon
Words 2053
Pages 9
Comparing your product to that of a competitor without scientific studies to substantiate your claims could lead to charges of deception. Saying you make a better pizza is puffery. Saying two out of three people prefer your pizza when you have no studies to substantiate the claim crosses the line to deception.

Literal false largely applies to promotional materials that involve statistical and testing proof of claims. The “tests prove” literal false advertising is where advertising relies on a study or test that establishes the supposed validity of the claim. There are also “bald claims” that do not rely on tests or peer-reviewed studies and therefore must be proven to be false

Shoplifting is a common crime that occurs when someone steals merchandise offered for sale from a retail store. elements of shoplifting are (1) willfully taking possession of or concealing unpurchasedgoods that are offered for sale (2) with the intention of converting the merchandise to the taker's personal use without paying the purchaseprice kleptomania (a compulsive urge to steal)
Some of the things that can happen to shoplifters are: * They may be arrested and paraded through a store in handcuffs. * They may face charges for theft. * They may be banned from stores or malls. * People who have been arrested for shoplifting — especially if it's more than once — may end up with a criminal record. This can make it harder to get a job, get into college, or do the other things they want.

A collusive practice is an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party.
As another example, collusion may involve cooperation between competing sellers, in the form of an agreement, express or tacit, limiting competition, or a merger or other means to raise the...

Similar Documents

Premium Essay

Nature of Fraud

...Licensed to: iChapters User Licensed to: iChapters User Fraud Examination, Fourth Edition W. Steve Albrecht Chad O. Albrecht Conan C. Albrecht Mark F. Zimbelman VP/Editorial Director: Jack W. Calhoun Editor-in-Chief: Rob Dewey Sr. Acquisitions Editor: Matt Filimonov Associate Developmental Editor: Julie Warwick Editorial Assistant: Ann Mazzaro Marketing Manager: Natalie Livingston Marketing Coordinator: Nicole Parsons Content Project Management: PreMediaGlobal Sr. Manufacturing Buyer: Doug Wilke Production House/Compositor: PreMediaGlobal © 2012, 2009 South-Western, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher. For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706....

Words: 20363 - Pages: 82

Premium Essay

Audit Program Design 1

...We will identify the internal control risks within Apollo Shoes as well as a description of the relationship between internal controls and the audit process, and a brief synopsis of our responsibility in detecting and reporting fraud. Guidelines According to COSO “Internal control is broadly defined as a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives.” “While internal control is a process, its effectiveness is a state or condition of the process at one or more points in time.” The Sarbanes-Oxley Section 404 Act, requires management to produce an “internal control report” along with the annual Exchange Act report. This report is required to confirm “the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting.” The report must also “contain an assessment, as of the end of the most recent fiscal year of the Company, of the effectiveness of the internal control structure and procedures of the issuer for financial reporting.” To successfully complete this management generally adopts an internal control framework such as that described in COSO. According to COSO here are the guidelines for the framework....

Words: 1257 - Pages: 6

Premium Essay

Platt's Case

...1. it’s abnormal that Dana recently has so many high living costs which may there is a potential fraud. 2. Dana emailed the payroll files to ADP and ADP direct deposits payroll into employees’ bank accounts. Dana is also the employee who prepares the payroll file. 3. Dana is also the person who is responsible for reconciling the ADP payroll file with bank records when the employee suspected of perpetrating the fraud. 4. Dana refuses to add additional personnel to assist her and she...

Words: 604 - Pages: 3

Premium Essay

Business Fraud (Sony Corp.)

...Systems and Information Breach A Review of Business Fraud   Abstract This paper explores the Sony Corp hacking case committed in April 2011, with the use of five published articles that support a review of business fraud against the company. The paper will include the following requirements: 1. A summary of a case study and include how the fraud was perpetrates, the characteristics of the perpetrators who committed the fraud, the role the auditors had in the case, and the direct and indirect effects the incident had on the organization’s stakeholders (customers, vendors, employees, executive committee, and board of directors) 2. Suggestions and rationalizations concerning the fraud classifications and that the case can be categorized into (based on the data processing model) will be presented 3. Suggestions regarding the types of controls that may have been in place at the time of the violation 4. Recommendations of two (2) types of controls that could be implemented to prevent fraud in the future and additional steps management can take to mitigate losses. 5. Judgment concerning the punishment of the crime (was it appropriate, too lenient, or too harsh) and whether the punishment would serve as a deterrent to similar acts in the future. The assignment will take the Sony Corp. systems fraud case and attempt to evaluate the different approaches and techniques that are used to commit, detect, and prevent computer fraud....

Words: 1487 - Pages: 6

Premium Essay

Acc 578 Complete Course Acc578 Complete Course

...ACC 578 Complete Course Click below link for Answer ACC 578 Week 1 Discussion "Fraud  "  Please respond to the following: * From the e-Activity, evaluate the cause(s) of the fraud. Recommend a strategy that could have prevented the fraud. Support your recommendation with examples. ACC 578 Week 2 Discussion 1 "Data Analysis and Fraud Investigation" Please respond to the following: * Imagine that you have been hired as a fraud examiner to review the risk of fraud at a major retailer. Analyze the data analysis tools available to you and propose a plan for which tools you will use. Provide a rationale for your plan. ACC 578 Week 2 Discussion 2 "Audit Objectives and Computer Analysis" Please respond to the following: * You have been tasked by your audit manager to develop an audit plan of a major bank.  Propose the key elements of your audit plan and the end result you expect from implementing the audit. Justify the key elements you chose for the plan. * From the e-Activity, analyze the systems the company used and propose a computer analysis plan that would have detected the fraud. Support your analysis with examples. ...

Words: 2341 - Pages: 10

Premium Essay

Case Study on Waste Managemnet

...The opportunity to commit fraud also exists due to the fact that the CEO and CFO had previously worked as an auditor at AA and some of the accounting personnel were the former AA employees. This situation makes it easy for the fraud to happen. Last but not least, the factors that become the indicative of the attitude or rationalization to justify the fraudulent action is the loss of entity values. Din as the...

Words: 1336 - Pages: 6

Premium Essay

Forensic Accounting

...Benford’s Law (1)定义:A fraud indicator that predicts the relative incidence of first digits of numbers in certain types of random data. (2)Benford Analysis Benford analysis presents another interesting approach to fraud detection. Its general use is to determine the likelihood that fraud exists in records. This technique is based on Benford’s law, named after Frank Benford who realized that the likelihood that numbers 1, 2, 3, 4, 5, 6, 7, 8, and 9 will appear as the first digit in numbers occurring in a random data set conforms to a predictable pattern. That is, the number 1 is more likely to appear as the first digit in a number than is the number 2. The pattern of likelihood (Figure 6.6) continues with other digits: The number 2 is more likely to appear as a first digit than 3, 3 is more likely to appear as a first digit than 4, and so on. Note that just because the likelihood is higher that 7 will appear as a first digit than will 8 does not mean that a number that begins with 8 is due to fraud. Benford’s law can be used to determine whether a higher risk than normal exists that a population of numbers—for example, a collection of vendor’s invoices—contain fraud. Specifically, the invoice amounts can be...

Words: 5213 - Pages: 21

Premium Essay

World Health Alternatives, Inc. Fraud

...ACC 655 – Advanced Auditing Term Paper: World Health Alternatives, INC – Fraud Brian O’Rourke, Katharina Ryska 10/14/2013 Introduction Scandals like Enron, Worldcom and Tyco have taught society about CEO’s fudging financial statements in order to make some extra money. With millions of dollars lost for the shareholders, members of the management engaging in fraudulent activity face high penalties. However, these penalties do not stop executives from trying to scam the system. World Health Alternatives, Inc got negative press following a big fraud investigation. The company with its number of wholly owned subsidiaries provides “medical, professional, and administrative staffing services to the healthcare industry in the United States.” By comprising nurse and physician staffing one would expect the company to have integrity. This paper is going to look at the fraud case, auditor’s responsibility, financial statements as well as the charges against the auditor. Furthermore, this paper is trying to see if the SEC allegations were warranted against the auditor. Overview of the Case According to the SEC, World Health Altneratives, Inc (World Health) engaged in fraudulent and improper conduct from at least May 2003 – August 2005. They manipulated accounting entries by understating expenses and liabilities, which made World Health look more financially sound....

Words: 2938 - Pages: 12

Premium Essay

Fraud Paper

...Submit a 3 page paper that 1) explains the difference between litigating an embezzlement case in civil court and criminal court, and 2) discuss the role of an expert witness/fraud examiner in each proceeding. There are two major factions of the United States court system: civil cases and criminal cases. Both take place in courtrooms all across the country, but there are several differences that separate the two as well as the role of fraud examiner in each proceeding. The major difference of the two in an embezzlement case is: 1) In a criminal court case, the opposing parties are the prosecutor, often the Assistant District Attorney, and the defendant, represented by a trial lawyer. In a civil court case, however, the opposing parties are the plaintiff and the defendant, both of whom are typically represented by attorneys. 2) In a criminal court case, the prosecutor must establish the guilt of the defendant, but in a civil court case, the plaintiff must only establish the liability of the defendant. In the former, the defendant is either guilty or not guilty of a crime, while in the latter, the defendant is either liable or not liable for monetary damages suffered by the plaintiff. For example, in a criminal court case, the defendant can be found guilty of money laundry his money, while in a civil court case, the defendant can be found liable for stealing someone’s car....

Words: 1711 - Pages: 7

Premium Essay

Business Law

...Chapter 10Homework 1. This would indeed be a contract called an implied-in-fact contract. This is a contract that is implied from the conduct of the parties. Unlike other contracts, the contract was created through the conduct of the parties, not through words. This is what Miller and McCleskey have done. The parties both agreed through their conduct that it was alright for Miller to take the candy bar, which he will pay at a later date. 2. Nursing Services will probably be able to recover the $4000. Under the objective theory of contracts, intent is not determined by the personal or subjective belief of a party. It is determined by how objective facts would be interpreted by a reasonable person. Therefore, it doesn’t matter that Janine did not feel she should pay for the service because there was no physical contract. From an objective view of a reasonable person, Janine knowingly received services without objecting to them. Since she was aware of this, she should have to pay for the services she has received. 3. There are two types of contracts: 1) a bilateral contract, which means “promise for a promise” and 2) a unilateral contract is “promise for an act.” A unilateral contract requires (1) an offer, and (2) substantial performance by the person accepting the offer according to the terms of the offer, or detrimental reliance by the person upon the promise of the offer (i.e., "promissory estoppel').Here, Baby Burger's hiring of Air Marketing creates a (1)......

Words: 2355 - Pages: 10

Premium Essay

Fraud Prevention and Management Recommendations

...Fraud Prevention and Management Recommendations The purpose of this Fraud Prevention Plan is to set out the approach to dealing with fraud risk within our organization. In order to prevent the types of frauds that have already occurred within our organization it will be necessary to create “a culture of honesty, openness, and assistance…..fraud prevention is where the big savings occur” (Albrecht, Albrecht, Albrecht, & Zimbelman, 2012, p.103). What is required is the implementation of a comprehensive hiring, fraud, and ethics training program with strong controls, with punitive treatment of fraud offenders. “Research confirms that anyone can commit fraud. Fraud perpetrators usually can’t be distinguished from other people on the basis of demographic or psychological characteristics.” (Albrecht et al. 2012, p. 33). The value of an effective fraud prevention program requires several components. The lack of fraud prevention leads to enormous risk. The corporation will need to install processes and controls to ensure that honest people are hired. When candidates are going through our interview process they will need to be thoroughly vetted on the accuracy of their work history, education, and stated accomplishments. In addition to the standard practiced of contacting references provided by the candidate, these referenced individuals will be asked to provide additional references....

Words: 2662 - Pages: 11

Free Essay

Medical Id Theft

...According to a 2013 survey conducted by the Medical Identity Fraud Alliance (MIFA), medical identity fraud has increased nearly 20 percent compared to the year before in the U.S., affecting an estimated 1.84 victims and having a total out-of-pocket medical costs incurred by medical identity theft victims of $12.3 billion (DeGaspari, 2013). This is a serious problem, because not only are millions of dollars wasted, but patient medical records are compromised, which can result to misdiagnoses, wrong procedures and treatment, and wrong prescriptions. On a smaller scale, Molina Healthcare’s Special Investigation Unit (SIU) conduct investigations on referrals they receive indicating a Molina member may have been a victim of identity theft. A lot of times when the issue is actually identity theft, the SIU is only able to “band-aid” the problem and have found the issue resurfacing months later and Molina continuing to pay claims for services the actual member did not receive. An example of this is a referral the SIU received in 2013, indicating that a Molina member’s identity had been stolen. Someone had used our member’s health information to receive hospital services for severe illness at another state. The SIU interviewed the member and confirmed that they have never traveled outside their city they...

Words: 3118 - Pages: 13

Premium Essay

Acc 555 Week 2 Hw

...Auditing Week 2 HW 4-18 a. (1) b. (3) c. (1) 4-19 a. (1) b. (3) c. (3) 4-20 Service/Violation? a. Providing bookkeeping services to a public company. The services were pre-approved by the audit committee of the company. Yes b. Providing internal audit services to a public company that is not an audit client. No c. Implementing a financial information system designed by management for a private company. No d. Recommending a tax shelter to a client that is publicly held. The services were pre-approved by the audit committee. No e. Providing internal audit services to a public company client with the pre-approval of the audit committee. Yes f. Providing bookkeeping services to an audit client that is a private company. No 4-21 a. Rule 101 - Independence. No violation. If the services performed conform to the requirements of Interpretation 101-3, independence of Emrich would not be considered to be impaired. There would be a violation of SEC rules if the client were publicly held. b. Rule 101 - Independence. No violation. Franz Marteens is not a partner nor is he assigned to the engagement team for the audit client. c. Rule 201 - General Standards. Violation. Interpretation 201-1 states that a member who accepts a professional engagement implies that he or she has the necessary competence to complete the engagement according to professional standards. Wilkenson has violated the rule since he does not have the......

Words: 1887 - Pages: 8

Free Essay

Seminar Outline

...Seminar in Accounting Theory ADM4342A Fall 2013 |Professor |Kathryn Pedwell, Ph.D. | |Office |DMS 7159 | |Telephone |613-562-5800 Ext. 4766 | |E-Mail | | |Office Hours |Tuesday 3:00 – 4:00 p.m. or By appointment | |Class Location |DMS 4130 | |Class Hours |Tuesday: 1:00 – 2:30 | | |Thursday: 11:30 – 1:00 | |Prerequisite(s) | | |Program of Study |BCom mandatory course | |Course Deliverable |Due Date |Weight on Final Grade | |Accounting Assignment |Oct. 3 |15% | |Midterm exam |Oct. 8...

Words: 1243 - Pages: 5

Premium Essay

Financial Statement

...Consideration of Fraud in a Financial Statement Audit 1719 AU Section 316 Consideration of Fraud in a Financial Statement Audit (Supersedes SAS No. 82.) Source: SAS No. 99; SAS No. 113. Effective for audits of financial statements for periods beginning on or after December 15, 2002, unless otherwise indicated. Introduction and Overview .01 Section 110, Responsibilities and Functions of the Independent Auditor, paragraph .02, states, "The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. [footnote omitted]"1 This section establishes standards and provides guidance to auditors in fulfilling that responsibility, as it relates to fraud, in an audit of financial statements conducted in accordance with generally accepted auditing standards (GAAS).2 .02 The following is an overview of the organization and content of this section: • • • Description and characteristics of fraud. This section describes fraud and its characteristics. (See paragraphs .05 through .12.) The importance of exercising professional skepticism. This section discusses the need for auditors to exercise professional skepticism when considering the possibility that a material misstatement due to fraud could be present. (See paragraph .13.) Discussion among engagement personnel regarding the risks of material misstatement due to fraud....

Words: 25387 - Pages: 102