Discuss the Enron Fraud Scandal. List and Explain at least 2 methods of investigation that differ from these of the actual fraud case. (assuming you are the investigator)
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Discuss the Enron Fraud Scandal. List and Explain at least 2 methods of investigation that differ from these of the actual fraud case. (assuming you are the investigator)
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- How is Benford's Law used to investigate cases of fraud? One example please and thank you in advance:(Ay In addition to the fraud triangle, what are a couple other tools used to indicate the potential for fraud. Explain themDiscussion Topic: What is Fraud? Forensic accountants and fraud examiners provide support for accusations of fraud. To be effective, they must understand the difference between fraud and abuse, and must understand the legal concept of fraud, as well as elements of fraud. How does fraud differ from abuse? Give an example of each. What are the legal elements of fraud? (Hint: there are four!); explain each element.
- As a fraud investigator, why you should be concerned about fraud trials as a result of resolving a fraud investigation case?Discuss the pros and cons of putting a subject on notice in a fraud investigation. Please provide references if any with URL.Answer the following questions and give an example for each case: In which areas can the embezzlement scheme be identified? What can cause fraud to be committed in the presentation of financial statements?
- Design a method of detection and a method of limiting the possible financial fraud. Provide support for your arguments.Explain what a ‘fraud risk factor means’ and discuss thethree conditions generally present when fraud occurs. Illustrateyour answer with two examples of fraud.Who is the professional bodies that responsible in fraud audit? Birefly explain.
- What is the most effective sequence of interviews in a fraud investigation? Please provide references with URL if any.If one of the three elements of the fraud triangle is not present, can fraud still be perpetrated? Explain. Identify factors (red flags) that would be strong indicators of opportunities to commit fraud. Is the ability to rationalize the fraud an important aspect to consider when analyzing a potentially fraudulent situation? What are some of the common rationalizations used by fraud perpetrators? Define and illustrate kiting. What controls should the client institute to prevent it?In writing your response, the following points must be addressed fully:a) Determine the type of fraud committed and describe with examples thesymptoms of fraud that are evident in the case study.b) As discussed in units 1 to 4, all frauds involve key elements. Identify anddescribe, using examples, the elements of the Purell’s magazine fraud.c) What role did trust play in allowing this fraudulent scheme to transpire?What elements contributed to this trust? Outline two positive and twonegative consequences that this might pose to the company in future fraudprevention.d) Describe Purell Magazine and Publishing House fraud preventionprogramme and identify any improvements that might be necessary toprevent this type of fraud or at least discover it sooner.