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    Chapter 10 Discussion Questions

    Uploaded by

    Shamraj E. Sunderamurthy
    The document discusses forensic accounting, fraud, and the fraud triangle. It defines forensic accounting as identifying and verifying past financial data to settle legal disputes. Fraud is defined as intentional deception, and examples provided include management, employee, vendor, and insurance fraud. The three components of the fraud triangle are perceived pressure, perceived opportunity, and rationalization, which are important for fraud examiners to understand.

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    Chapter 10 Discussion Questions

    Uploaded by

    Shamraj E. Sunderamurthy
    62 views3 pages
    The document discusses forensic accounting, fraud, and the fraud triangle. It defines forensic accounting as identifying and verifying past financial data to settle legal disputes. Fraud is defined as intentional deception, and examples provided include management, employee, vendor, and insurance fraud. The three components of the fraud triangle are perceived pressure, perceived opportunity, and rationalization, which are important for fraud examiners to understand.

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    Chapter 10 discussion questions

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    The document discusses forensic accounting, fraud, and the fraud triangle. It defines forensic accounting as identifying and verifying past financial data to settle legal disputes. Fraud is defined as intentional deception, and examples provided include management, employee, vendor, and insurance fraud. The three components of the fraud triangle are perceived pressure, perceived opportunity, and rationalization, which are important for fraud examiners to understand.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    62 views3 pages

    Chapter 10 Discussion Questions

    Uploaded by

    Shamraj E. Sunderamurthy
    The document discusses forensic accounting, fraud, and the fraud triangle. It defines forensic accounting as identifying and verifying past financial data to settle legal disputes. Fraud is defined as intentional deception, and examples provided include management, employee, vendor, and insurance fraud. The three components of the fraud triangle are perceived pressure, perceived opportunity, and rationalization, which are important for fraud examiners to understand.

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    Discussion Question

    3. Define forensic accounting.


    The action of identifying, recording, settling, extracting, sorting, reporting, and verifying past
    financial data or other accounting activities for settling current or prospective legal disputes or
    using such past financial data for projecting future financial data to settle legal disputes
    4. Define fraud and identify four examples of fraud.
    Simply defined, fraud is an intentional deception. Black's Law Dictionary defines fraud as: "A
    generic term, embracing all multifarious means which human ingenuity can devise, and which
    are resorted to by one individual to get advantage over another by false suggestions or by
    suppression of truth, it includes all surprise, trickery, cunning, dissembling, and any unfair way
    by which another is cheated." Four examples would include; Management fraud, Employee
    fraud, vendor fraud, and insurance fraud.
    5. What are the three components of the fraud triangle? Of what concern are they to the
    fraud examiner?
    Three components of the fraud triangle include: Perceived pressure. Perceived opportunity.
    Rationalization. Knowledge of the three elements provides the practitioner with an
    understanding of the different approaches that may be taken in the investigation.
    Exercises
    2. Access the U.S. Department of Justice website, and briefly explain the characteristics
    of identity theft. Give two examples of ways to commit identity theft.1
    Identity theft and identity fraud are terms used to refer to all types of crime in which someone
    wrongfully obtains and uses another person's personal data in some way that involves fraud or
    deception, typically for economic gain.
    In public places, for example, criminals may engage in "shoulder surfing"– watching you from a
    nearby location as you punch in your telephone calling card number or credit card number – or
    listen in on your conversation if you give your credit-card number over the telephone.
    If you receive applications for "pre-approved" credit cards in the mail, but discard them without
    tearing up the enclosed materials, criminals may retrieve them and try to activate the cards for
    their use without your knowledge. Also, if your mail is delivered to a place where others have
    ready access to it, criminals may simply intercept and redirect your mail to another location.
    3. Access Zoominfo.com, and search for a major public company. What were your
    results?
    Unfortunately, I cannot access the search content of the website as it requires a business email
    which I do not have.

    Page 1 of 3
    6. Access a recently issued SEC Accounting and Auditing Enforcement Release related
    to a fraud action (www.sec.gov). Click on enforcement and determine
    incentive(s)/pressure to commit the fraud, accounting issue(s), and the motive for the
    fraud.

    Enforcement Date Respondent Committed fraud Pressure/Incentive


    Code
    AAER-4199 Dec. 17, Apex Global Violation of: High Degree of
    2020 Brands Inc.  Section competition
    and FKA 17 of
    Cherokee Inc. Securities
    act.
     Section
    13 of
    Exchange
    act.
    1
    https://www.justice.gov/criminal-fraud/identity-theft/identity-theft-and-identity-fraud

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