ACC 521 Chapter Notes - Chapter 7: Fraud, Financial Statement, False Accounting

• School: Ryerson University
• Department: Accounting
• Course: ACC 521
• Professor: Kathryn Bewley

Document Summary

White collar crimes: misdeeds committed by business and government professionals, typically non-violent. Fraud: in financial statement auditing, and intentional act by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception to obtain an unjust or illegal advantage. Two types of fraud include: employee fraud: the use of dishonest means to take money or other property from an employer. Defalcation: fraud in which an employee takes assets from organization for personal gain; may be due to corruption or assets misappropriation. Fraudulent financial reporting: intentional manipulation of reported financial results to portray a misstated economic picture of the firm by which the perpetrator seeks an increase in personal wealth gain through a rise in stock price or compensation. Error: in financial statement auditing, unintentional misstatement or omission of amounts or disclosures in financial statements. Misappropriation of assets: the theft or misuse of an organization"s assets.