ACCT 2001 Chapter : Fraud - Chapter 7
Document Summary
Dishonest act by an employee that results in personal benefit to the employee at a cost to the employer. Three factors that contribute to fraudulent activity (the fraud triangle): Circumstance or ability to carry out fraudulent act. Rationalizing act in mind i"m doing it because ____" I"ll pay it back its for a good reason " Resulted from corporate scandals in the early 2000s to address fraud. Required to maintain a system of internal control. Corporate executives and boards of directors must ensure that these controls are reliable and effective. Independent outside auditors must attest to the adequacy of the internal control system. Sox created the public company accounting oversight board (pcaob)
