1. FRAUD EXAMINATION ALBRECHT, ALBRECHT, & ALBRECHT
THE NATURE OF FRAUD
CHAPTER 1

2. Learning Objectives
Understand the seriousness of the fraud problem and how it affects individuals, consumers and organizations
Define fraud
Classify fraud into various types
Understand how expensive fraud is to a company, investors, and a nation

3. Learning Objectives
Distinguish between criminal and civil fraud laws and how they relate to fraud.
Be familiar with types of fraud-fighting careers today.

4. Describe the Seriousness of Fraud.

5. List Four Sources for Knowing How Much Fraud is Occurring.

6. What are the Estimated Costs and Impacts of Fraud?

7. Explain How $1 in Fraud Represents $1 Lost Profits.

8. What are the Seven Elements of Fraud?

9. What are the Seven Elements of Fraud?

10. Define Fraud: What it is and What it isn’t.

11. Why Are We so Often Conned?

12. Classify Frauds and Give an Example of Each.

13. List Keys to Occupational Fraud and Define.

14. Complete this Chart.
Type of Fraud
Victim
Perpetrator
Explanation

15. Differentiate between Direct and Indirect Embezzlement.

16. What Are the Two Types of Vendor Fraud? Discuss.

17. Explain Customer Fraud.

18. Match Terms to Definitions.
Employee Embezzlement
Association of Certified Fraud Examiners
Employees taking employer’s assets
Management fraud
Overcharge for goods, or ship inferior goods
Investment scams
Selling worthless investments to unsuspecting investors
Vendor fraud
Manipulation of financial statements by management
Customer fraud
Getting something for nothing, not paying for goods & services
ACFE

19. Differentiate between Criminal and Civil Responses to Fraud.
Criminal Case
Civil Case
Purpose
Consequences
Burden of Proof
Jury
Organization
Verdict
Claims

20. What Skills Are Needed to be a Fraud Fighter?

21. Some Additional Skills that May Prove Helpful

22. Employment Opportunities
Employer
Types of Work
Government
CPA Firms, Forensic accounting firms, Law firms
Corporations
Organizations involved in civil cases
Universities, hospitals, etc.