Fraud

Like I stated in the beginning fraud is defined as the “wrongful or criminal deception intended to result in financial or personal gain” (Definition of Fraud in English by Oxford Dictionaries). There can be many things that can indicate or give a trigger to fraud some examples of fraud are, Phantom Billing which is billing for services that were never performed to that patient Inflated Hospital Bills: overcharging for procedures and /or equipment used on that patient. Service Unbundling or…

Ergo, do corporate governance frameworks of organisations need to take action to cover the fraud risk of Ponzi schemes? On initial consideration one would think it unlikely, as organisations can be expected to have reasonable investment insight, business know-how and resources for active investigation. Nonetheless, even though one would assume…

accounting firms, failed their duty as auditors and overseers of the accounting profession. As external auditors, they have a duty to detect any fraud and irregularities and fell short of that duty. Instead, the well-known accounting firm simply stated that it “was unaware of a break in accounting rules” (Accounting Web, 2002). After a $3.8 billion fraud, Andersen responded by saying, “Our work for WorldCom complied with SEC and professional standards at all times. It is of great concern that…

Experts In Health Care Fraud Prevention Have Noted That A Successful Culture Of Regulatory Compliance Is Established By The Ethical Behavior Of Senior Leadership. A. Do You Agree Or Disagree With That Statement? Provide Citations And Specific Examples To Support Your Assertions. B. When Fraud Violations Occur, What Are The Key Strategies To Deal With Those Who Commit The Violations? I agree with audit experts that compliance to the regulatory framework is determined by the ethical behavior of…

financial statements are free of material misstatement whether caused by error or fraud. The Auditor has standards of fieldwork that should be used as a guide to fulfill their responsibility. These standards are covered in SAS 99. Fraud is the intentional act that results in a material misstatement in financial statements that are the subject of an audit. There are two types of misstatements relevant to the consideration of fraud, Misstatements arising from fraudulent financial reporting and…

After being charged with securities fraud, stock manipulation, money laundering, and other organized crime tactics (NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC), Belfort was sentenced to 4 years in prison and a $110.4 million dollar fine. However, after pleading guilty to fraud and money laundering along with testifying against his fellow associates, Belfort was given a reduced sentence of 22 months in Taft Correctional Center where he later wrote his biography. Daniel Porush was also…

Lernout & Hauspie (L&H) was the world’s leading provider of speech and language technology products, solutions, and services to businesses worldwide. Both Microsoft and Intel invested millions in L&H. however, accounting scandals and fraud allegations sent the company’s stock crashing, and forced the firm to seek bankruptcy protection in Belgium and in the US. Selected information was gathered concerning L&H operations: • Consolidated revenue increased 184% from 1997 fiscal year to 1998 fiscal…

prevented or detected early on. In chapter three of Financial Services Anti-Fraud Risk and Control Workbook, it gives examples of preventative techniques. First, to understand the weakness within an organization it is important to look at the red flags; the red flags can help show the vulnerabilities that a company has via a fraud risk assessment. The textbook mentions standard preventative techniques beginning with Anti- Fraud Policies. Policies are important to implement because the mold the…

The False Claims Act is a piece of legislation from the U.S. Congress that allows any individual with knowledge of a fraud being perfected against any agency of the U.S. Government to file a claim on behalf of the Government against the individual or business that has or is committing such fraud. The individual filing such claim on behalf of the United States Government is identified as the qui tam plaintiff and, if the action is successful, such person is entitled to share in a percentage of…

The motivating factor behind this fraud was the business tactic of WorldCom's CEO, Bernie Ebbers. During1990s, Ebbers was only focused on achieving an extraordinary growth through acquisitions. By using the stock of WorldCom he was going to pay for the acquisitions. To achieve this buying extravaganza, the stock had to repeatedly increase in value. In 1998, WorldCom acquired MCI Communications, a company which was more than 2.5 times the profits of WorldCom. Ebbers' acquisition strategy mainly…