ACCT207 Chapter Notes - Chapter 7: Bank Statement, List Of The Shield Episodes, Money Market Fund
26 Apr 2016
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Fraud: a dishonest act by an employee that results in personal benefit to the employee at a cost to the employer. Three main factors (referred to as the fraud triangle: opportunity. The workplace environment must provide opportunities that an employee can exploit. Opportunities can occur when the workplace lacks sufficient controls to deter and detect fraud: financial pressure. Employees sometimes commit fraud because of personal financial problems caused by too much debt, or because they want to lead a lifestyle that they cannot afford on their current salary: rationalization. Employees rationalize their dishonest actions to justify their fraud. Ex: employees may try to justify their fraud because they believe they are underpaid while their employer makes plenty of money. The sarbanes-oxley act (sox: was passed in the early 2000s after many corporate scandals came to light, requires that all publicly traded u. s. corporations maintain an adequate system of internal control.
