Fraud Prevention : In today's modern world, almost every organization suffers from undetected fraud which the management isn't even aware about. This is because there aren't enough measures in place in order to detect and prevent such frauds. The activity of the organization putting measures in place and other activities that organization undertakes for prevention of fraud is known as fraud prevention. Preventing fraud includes several things or we can say fraud can happen in infinite number of ways and accordingly the ways to prevent such fraud is also varied. Hence organization can prevent fraud by preventing leakage of confidential company data such as employee information or product strategy, by preventing embezellment, by preventing theft etc.
Fraud Deterrence : It refers to the process of removal of the factors which enable fraud. This concept assumes that fraud only happens when the right conditions for it are present. This concept has gained a lot of popularity in the modern world. This concept does not detect fraud but it prevents fraud from happening by attacking the root causes which might cause fraud. This process could also reveal potential fraud opportunities.
Fraud Detection : It refers to a set of activities which are undertaken by the company in order to detect any current fraud which has already happened or is currently happening in the organization. It is different from fraud prevention in the sense that it is only concerned with detecting whether a fraud has occured or not whereas fraud prevention is a preventive activity concerned with stopping fraud from happening.
The issue with timing in respect to the above explained terms is that the ideal scenario for the timelines for the above mentioned activities should be as follows :
1st Fraud Deterrence & Fraud prevention should come ------->>>>> then fraud detection should be done.
The above equation means that the organization should first focus on preventing fraud and removing the root causes of fraud and then check whether any fraud is still there or not.
But instead what happens in the real world is that this topic is taken very lightly and the above mentioned equation is actually reversed. If and when a fraud is detected in the organization, then only the organizations do fraud prevention and fraud deterrence. This is the timing issue that fraud prevention & deterrence should always come before fraud detection but the same never really happens.
Instructions Define the terms fraud prevention, fraud deterrence, and fraud detection, and identify issues of timing.
Assignment: Fraud Prevention, Deterrence, and Detection at Diamond Foods Forensic accountants are often called upon to examine a company's fraud and internal controls and make improvements to the system. Read the Diamond Foods case study located in your Syllabus. Checklist Prepare a 2-3 page paper describe the deficiencies that existed in corporate governance, internal controls, and other areas, using the risk factors listed on pages 505-508. Explain how the risk factors you found increase fraud risk. For each fraud risk...
Compare and contrast the difference between fraud prevention and fraud deterrence? Provide examples, TTT Arial 3 (12pt) TEE 5.02
Identify and define policies and procedures that deter occupational fraud/misappropriation of assets. Which one do you feel is most important? Why?
Identify and define policies and procedures that deter occupational fraud/misappropriation of assets. Which one do you feel is most important? Why?
Instructions 1. Using the conceptual framework, identify and analyze the financial reporting issues. Environmental Inc. operates in Canada and the United States. Its basic business is high-temperature treatment services for contaminated soil. In its 2020 financial statements, the company had a loss of $9.3 million (and an accumulated deficit of $43.7 million). In the notes to the financial statements, the company stated that it deferred certain transportation costs and recorded them as assets. These costs relate to shipping contaminated materials...
Define the term "medical tourism and identify and explain three (3) ethical issues specific to medical tourism.
Define the following terms and identify which of the four word parts each one is/are: -opthalm/o __________________________________________ -tympan/o ___________________________________________ -opia _______________________________________________ -cusis ______________________________________________ -ology ______________________________________________ -itis ________________________________________________ -otomy _____________________________________________ -pathy ______________________________________________ -ectomy _____________________________________________
I. Identify/Define the following terms giving their significance: 1. Ecdysis: 2. Torsion: 3. Hemocoel: 4. Coriolis effect: 5.Mesenchyme cells: 6. Nematocyts: 7. Semalparity: 8. Upwelling: 9.Statocysts: 10. Hadal Zone:
Question 3 (20 marks) The following statements relate to general principles or terms used in the audit of financial statements. Identify two errors from each of the following statements (a)-(e) and explain briefly why these are errors or suggest corrections. (a) The objective of an audit of financial statements is to enable auditors to give a true and correct view in all respects in accordance with Hong Kong Auditing Standards. (b) Fraud refers to an unintentional act by one or...
Legal and Ethical Issues 1. Define the terms law and ethics and list examples of legal and ethical behavior Short Answer For each of the following examples, decide whether the issue is a legal issue or an ethical issue. Write L for legal or E for ethical. 6. Ca du sh 1. Dorothy, a nursing assistant, makes Co fun of the way one of her residents speaks English when she is at home with her husband. 2ยท Dennis, a nursing...