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Which is an example of an intentional fraud?
Frequently, there are commercial pressures to report an unrealistic level of earnings, which can take precedence over controls designed to prevent fraud occurring. Any business asset can be stolen by employees or third parties, or by employees and third parties acting in collusion. Examples of common employee and management fraud include:
How is fraud defined in the legal sense?
In order for it to be fraud in the legal sense the person on whom the fraud was sought to be committed should have necessarily fallen prey to it. If an attempt of fraud is made but the person concerned was not actually deceived, it is not ‘fraud’ as understood legally.
What are the two factors necessary for fraud?
The second factor necessary for fraud is rationalization. This is where the employee justifies to himself that committing the fraud is not as bad as it seems.
What are the elements of the fraud triangle?
In the examination of any fraud case according to the Fraud triangle there are three major elements, pressure, opportunity and rationalization. To illustrate the relevance of these three factors we can examine a recent fraud case i. e. the South Carolina Hospitality Association.
Last Update: Oct 2021
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