Unit One Assignment Fraud Basics - 879 Words

Iroda Yakubova Unit One Assignment: Fraud Basics 1. In my opinion, non-shareable financial need is the most important in causing executives, managers, and employees to commit occupational fraud. The proxies become â€Å"criminals on trust† in the case of they start to have financial difficulties, which they cannot share with nobody. They think that available option to perform completely secret financial fraud and able to give an explanation to their behavior in a given situation, allowing to reconcile presenting itself as an reproof trust the people and how user entrusted funds or property. Cressey classified very detailed and described the part of triangle, which is a pressure of circumstances and â€Å"undisclosed† problems: violation of†¦show more content†¦Good control contributes to the modeling and the promotion of behavior befitting personnel, recruitment of staff and the most honest understanding of their responsibilities. 3. The current global recession is so severe that all these factors (motivation / pressure of external circumstances, the ability to commit fraud, and the ability to justify action) became more relevant than ever. A threat to the economic survival of the company or person, the line between acceptable and unacceptable behavior may seem to some people is much less clear. Now is becoming more common this type of fraud, as a distortion of the financial statements. A significant increase in crimes of this type can be explained by failures in the control system, which occur as a result of cost reductions. Impact and pressure associated with the need to achieve the targets against the background of an increasingly complex situation. A significant part of economic crimes are committed with the direct involvement of employees or in collusion with persons working in the company. One possible reason could be a better understanding of the company s business (including its strengths and weaknesses) employees compared with external parties, which puts employees in a better position to commit unlawful acts. Most of the illegal acts committed, unfortunately,