Essay A Brief Note On Occupational Fraud And Financial Fraud

1145 Words Nov 21st, 2016 5 Pages
According to Joseph T Wells, Chairman of the Board of the National Association of Certified Fraud Examiners, there are three primary reasons that a company commits financial fraud. "The three reasons a company would commit financial fraud is to conceal true business performances, preserve control and status, and to maintain personal wealth and income." A Houston based energy company, Enron Corporation, had a combination of all three. The practices under scrutiny were partnerships which investigators say were used to conceal debt and unprofitable investments (Cohan, 2011). This research paper will discuss what occupational fraud is, inform how Enron was involved, and discuss how technology could have been used to help prevent it.
Financial Statement Fraud Occupational fraud are those illegal and harmful financially driven activities committed with the context of legitimate, respectable occupation. Forms include retail crime, service crime, crimes of professionals, and employee crime (Kubasek, 2014). Occupational fraud and abuse includes any personal enrichment that results from misuse or ¬misapplication of the employing organization’s resources or ¬assets. The 2016 Report to the Nation on Occupational Fraud and Abuse, from the Association of Certified Fraud Examiners, indicated that there were over $6.3 billion in total losses from occupational fraud. According to Association of Certified Fraud Examiners in its 1996 Report to the Nation on Occupational Fraud and Abuse, there…

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