Management Fraud

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Management Fraud
Angela Battle
Aiu Online

Outline
Types of Fraud
Stealing
Money, Computers, Inventory
Trips on business expense
Finding a business trip idea by traveling close to family
Paying bills for personal accounts with business account
Normally this would be a bookkeeper
Reimbursements
Turning in receipts for personal use and claiming it was a business expense. Why Does It Occur
One bad habit leading to another
Once fraud is committed once, they will attempt is a second time. Employee trying to borrow from the company without legitimate paperwork. Embezzlement often is a way of life for some people.
Loss of time or money from job
Impact of Fraud
Fraud is not unusual
Most companies will have to deal with some sort of fraud at some time or another Financial Loss
The money or items that have been taken is a loss for the company. Cost of the Investigation
It takes time and money to investigate any case and to hold litigations. Reputation
The reputation of the company could be in danger if the fraud is against something like Medicare or a government official. Could lead to a shut down and negative publicity
Damaged Morale
Damaged relationships with employees and co-businesses
Loss of Employees
Protecting Against Fraud
Have the right attitude
Don’t believe that most employees won’t steal
“We have auditors that will catch it”
Hire Smart
Know as much as possible about every employee before hiring. Employee Knowledge
Allow employees to know that they could be audited and that the company is watching. Internal Controls
Audit periodically
External Controls
Do external audits if something looks incorrect.

Mr. Wellington should say:

Fraud can and has hurt many companies over the years. One type of fraud is management fraud that has been found. There are many ways that fraud can happen, and it normally starts off with something small. This could be anything from money to computers to inventory...
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