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Outline two positive and two negative consequences that this might pose to the company in future fraud prevention
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- What is an example of perceived opportunity as one of the three elements causing a person to commit fraud?What is an example of incentive as one of the three elements causing a person to commit fraud?What are two positive and two negative consequences that this might pose to the company in future fraud prevention
- The best protection for a company against telemarketing scams is: threatening to complain to law enforcement—then actually filing a complaint suing the fraudster prevention both a and bWhich is NOT a source of fraud risk (from the Fraud Triangle)? a) Fraud Tip Hotline b) Perceived Opportunity c) Rationalization d) Financial PressureGive specific examples of fraud risk factors - incentives, opportunities, and attitudes/rationalization.
- If one of the three elements of the fraud triangle is not present, can fraud still be perpetrated? Explain. Identify factors (red flags) that would be strong indicators of opportunities to commit fraud. Is the ability to rationalize the fraud an important aspect to consider when analyzing a potentially fraudulent situation? What are some of the common rationalizations used by fraud perpetrators? Define and illustrate kiting. What controls should the client institute to prevent it?The fraud triangle asserts that the following three factors must exist for a person to commit fraud. A. Opportunity B. Pressure C. Rationalization. Identify the fraud risk factor (A, B, or C) in each of the following situations.Explain one gap the company has in internal control procedures in which fraud or errors could occur? What can the company do to prevent or detect this fraud or error?
- Explain how to conduct a fraud risk assessmentThe fraud triangle identifies incentives, opportunities, and rationalizations as the three elements associated with frauds. Describe how these elements are related to the occurrence of fraud.Explain one gap the company has in internal control procedures in which fraud or errors could occur? What can the company do to prevent or detect this fraud or error? In your own words, explain the importance of internal control procedures.