Study Guide For Fraud
Páginas: 5 (1100 palabras)
Publicado: 9 de julio de 2012
Fraud Possible Terms on Final Exam
WHAT IS FRAUD? WHEN AN INDIVIDUAL GET AN ADVANTAGE OVER ANOTHER BY FALSE REPRESENTATIONS. THE INDIVIDUAL CAN USE SURPRISE, TRICKERY, OR CHEATING TO COMMIT FRAUD.
FRAUD IS A DECEPTION THAT INCLUDES 7 ELEMENTS: A REPRESENTATION, ABOUT A MATERIAL POINT, WHICH IS FALSE, AND INTENCIONALLY OR RECKLESSLY SO, WHICH IS BELIEVED, AND ACTED UPON BY THE VICTIM, TO THEVICTIM’S DAMAGE.
TYPES OF FRAUD: EMPLOYEE EMBEZZLEMENT, VENDOR FRAUD, CUSTOMER FRAUD, MANAGEMENT FRAUD, INVESTMENTSCAMS AND OTHER CONSUMER FRAUDS, AND OTHER MISCELLANEOUS FRAUD SUCH AS TAX FRAUD, AND FINANCIAL STATEMENTS FRAUD.
Chapter # 7
1. Surveillance.- Investigation technique that relies on the senses, especially hearing and seeing.
2. Invigilation.- Imposing strict temporarycontrols on an activity so that, during the observation period, fraud is virtually impossible. Involves keeping detailed records before, during, and after the invigilation period and comparing suspicious activity during three periods to obtain evidence about whether fraud is occurring.
Chapter # 8
3.- Chain of Custody.- maintaining detailed records about documents from the time they arereceived in the investigation process until the trial is completed. Helps to substantiate that documents have not been altered or manipulated since coming into he investigator’s hand.
4.- Sampling Risk.- Risk that a sample is not representative of the population.
5.- Non-Sampling Risk.- The risk that a sample will be examined and the rue characteristics of the sample, including fraudulent or otherelements of interest, will be misinterpreted or overlooked.
6.- Subpoenas.- A written order in the name of the court, requiring a witness to submit to a deposition, give testimony at trial, or report to an administrative body.
Chapter # 9
7.- National Crime Information Center (NCIC).- The major criminal database maintained by the FBI. This database contains information on stolen vehicles,securities, boats, missing persons, and other information helpful in fraud investigations.
8.- Opting Out.- Right of customers to give written notice to financial institutions that prohibits the institution from sharing or selling customer’s personal information.
9.- Net Worth Method.- Analytical method that estimates a suspect’s unexplained income. Liabilities are subtracted from assets togive net worth, and then the previous year’s net worth is subtracted to find the increase in net worth. Living expenses are then added to the change in net worth to determine a person’s total income, and finally known income is subtracted from total income to determine the unknown income.
Chapter # 10
10.- Inhibitor.- Any socio-psychological barrier that impedes the flow of relevantinformation by making respondents unable or unwilling to provide information.
11.- Induction.- Reasoning from the specific to the general, or from effect to cause.
12.- Deduction.- Reasoning from the general to the particular or from cause to effect.
13.- Benchmark Admission.- An answer that implies guilt. This is an answer to a question that implies admission on the part of the interviewee.14.- Polygraphs.- An electronic assessment of honesty that includes hooking a person up to a machine to assess the normalcy of breathing, pulse, and other physical abnormalities; used to assess stress to determine if people are telling the truth.
Chapter # 11
15.- SEC.- Governmental organization with responsibility for regulating stock trading and financial statements and reports of publiccompanies.
16.- Backdating.- The practice of deliberately and improperly changing the effective dates on stock options for the purpose of securing extra compensation for the option holders.
17.- Strategic reasoning.- The reasoning process involved in the fraud setting where an investigator or auditor attempts to predict how a fraud perpetrator may be responding to likely behavior of the...
WHAT IS FRAUD? WHEN AN INDIVIDUAL GET AN ADVANTAGE OVER ANOTHER BY FALSE REPRESENTATIONS. THE INDIVIDUAL CAN USE SURPRISE, TRICKERY, OR CHEATING TO COMMIT FRAUD.
FRAUD IS A DECEPTION THAT INCLUDES 7 ELEMENTS: A REPRESENTATION, ABOUT A MATERIAL POINT, WHICH IS FALSE, AND INTENCIONALLY OR RECKLESSLY SO, WHICH IS BELIEVED, AND ACTED UPON BY THE VICTIM, TO THEVICTIM’S DAMAGE.
TYPES OF FRAUD: EMPLOYEE EMBEZZLEMENT, VENDOR FRAUD, CUSTOMER FRAUD, MANAGEMENT FRAUD, INVESTMENTSCAMS AND OTHER CONSUMER FRAUDS, AND OTHER MISCELLANEOUS FRAUD SUCH AS TAX FRAUD, AND FINANCIAL STATEMENTS FRAUD.
Chapter # 7
1. Surveillance.- Investigation technique that relies on the senses, especially hearing and seeing.
2. Invigilation.- Imposing strict temporarycontrols on an activity so that, during the observation period, fraud is virtually impossible. Involves keeping detailed records before, during, and after the invigilation period and comparing suspicious activity during three periods to obtain evidence about whether fraud is occurring.
Chapter # 8
3.- Chain of Custody.- maintaining detailed records about documents from the time they arereceived in the investigation process until the trial is completed. Helps to substantiate that documents have not been altered or manipulated since coming into he investigator’s hand.
4.- Sampling Risk.- Risk that a sample is not representative of the population.
5.- Non-Sampling Risk.- The risk that a sample will be examined and the rue characteristics of the sample, including fraudulent or otherelements of interest, will be misinterpreted or overlooked.
6.- Subpoenas.- A written order in the name of the court, requiring a witness to submit to a deposition, give testimony at trial, or report to an administrative body.
Chapter # 9
7.- National Crime Information Center (NCIC).- The major criminal database maintained by the FBI. This database contains information on stolen vehicles,securities, boats, missing persons, and other information helpful in fraud investigations.
8.- Opting Out.- Right of customers to give written notice to financial institutions that prohibits the institution from sharing or selling customer’s personal information.
9.- Net Worth Method.- Analytical method that estimates a suspect’s unexplained income. Liabilities are subtracted from assets togive net worth, and then the previous year’s net worth is subtracted to find the increase in net worth. Living expenses are then added to the change in net worth to determine a person’s total income, and finally known income is subtracted from total income to determine the unknown income.
Chapter # 10
10.- Inhibitor.- Any socio-psychological barrier that impedes the flow of relevantinformation by making respondents unable or unwilling to provide information.
11.- Induction.- Reasoning from the specific to the general, or from effect to cause.
12.- Deduction.- Reasoning from the general to the particular or from cause to effect.
13.- Benchmark Admission.- An answer that implies guilt. This is an answer to a question that implies admission on the part of the interviewee.14.- Polygraphs.- An electronic assessment of honesty that includes hooking a person up to a machine to assess the normalcy of breathing, pulse, and other physical abnormalities; used to assess stress to determine if people are telling the truth.
Chapter # 11
15.- SEC.- Governmental organization with responsibility for regulating stock trading and financial statements and reports of publiccompanies.
16.- Backdating.- The practice of deliberately and improperly changing the effective dates on stock options for the purpose of securing extra compensation for the option holders.
17.- Strategic reasoning.- The reasoning process involved in the fraud setting where an investigator or auditor attempts to predict how a fraud perpetrator may be responding to likely behavior of the...
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