Fraud Case Study

In the past few years corruption has become more common. No one knows whether the problem is due to economic downturn, a decline in the ethical behavior of employees, or other attitudes towards the government or enterprise. Charleston, South Carolina, is no exception, and the number of fraud cases continues to increase. More cases are discovered every year and are open to the public. One of the incidents is cash from the garage owned by the county. I will explain Martina Moultrie Richardson 's corruption case, the type of evidence necessary for the incident, how to collect evidence / procedure, and the procedure for preparing and maintaining evidence.

There are various forms of fraud, but it can be divided into three categories: asset misuse, misbehavior, and financial statement fraud. There is the least abuse of assets, but it accounts for 90% of all research fraud cases. These are plans for employees to steal or use organization resources. An example of misuse of an asset is to steal cash before and after the record, make a fictitious expense refund request, or steal an organization's non-cash assets.

Alfa One Corporation's complete accounting solution: Six strategies to prevent fraud in your business

There are three main categories of three types - fraud: fraud, asset misuse, corruption, and financial statement fraud. Among them, asset allocation is the most common, occurring in an 85% case study, but it seems that the cost is the lowest and the median loss is $ 130,000. By contrast, 9% of the cases were related to financial statement fraud and the median loss was $ 1 million, but these cases have the greatest financial impact.

For large or small organizations, it is important to plan a fraud prevention plan. The fraud case investigated in the ACFE 2014 report showed that the investigated fraud lasted an average of 18 months before being discovered. Please imagine the types of losses a company will incur if an employee commits a fraud for a year and a half. Fortunately, there are ways to minimize fraud by implementing various procedures and controls. Fraudulent people often show the behavioral characteristics that can indicate the intent of fraud. Observing and listening to employees helps to identify potential fraud risks. Management must take time to keep in touch and understand employees. In many cases, you can understand the risk by changing attitudes. This also makes it possible to clarify internal problems that need to be resolved.

Alfa One Corporation's complete accounting solution: Six strategies to prevent fraud in your business