1. FRAUD EXAMINATION ALBRECHT, ALBRECHT, & ALBRECHT Fraud Against Organizations Chapter 15

2. Learning Objectives 1.Recognize the various ways in which employees, vendors and customers can steal assets. 2.Describe the nature of thefts of cash through larceny, skimming, and fraudulent disbursements. 3.Explain the nature of thefts of inventory and other assets. 4.Understand the nature of bribery.

3. Review Some Common Fraud Statistics

4. Define Asset Misappropriations Asset Misappropriations

5. Match Definitions. Larceny Skimming Lapping Delaying the recording of payments, record tomorrow’s payments as today’s Stealing cash before it is recorded Stealing cash that’s already recorded

6. Define & Describe Check Tampering.

7. What Are Three Common Cash Register Scams?

8. Describe How Billing Schemes Work. Comment.

9. Review Expense Schemes.

10. Review & Comment on Payroll Scams.

11. Inventory & Other Asset Frauds Occur What 2 Ways?

12. Comment on 4 Types of Corruption.

13. Define & Discuss Bribery.

14. What is Conflict of Interest?

15. Define Extortion & Illegal Gratuities.

16. Terms Match Deceive someone to put money into a fake investment Fictitious entity created to commit fraud Paying for something or paying too much for something it shouldn’t An employee demanding from a vendor in order to influence a decision Economic Extortion scheme Disbursement Fraud Dummy or Shell Company Investment Scheme

17. Terms Match “Paying off” or “bribing” public or company officials in order to get preferential treatment Stealing cash once it has been recorded in the records Offering, giving, receiving, or soliciting anything of value to influence an official act Another name for frauds committed against an organization Bribery Corruption Larceny Misappropriations

18. Terms Match Stealing cash by preparing fraudulent checks or intercepting checks made payable to others Employees assisting vendors in winning contracts by providing some kind of unfair advantage Payments made to reward favorable decisions – payment is made after the deal is approved Embezzling a portion of the cash receipts of an organization Bid-rigging Scheme Check Tampering Illegal Gratuities Skimming