Does Managing Occupational Fraud Add Value?

2021 ◽  
Author(s):  
Lewis Barnes
Keyword(s):  
Occupational Fraud

Helping Students Understand Occupational Fraud by Applying the ACFE Report to Daytime Television Talk Show Confessions

2013 ◽  
Vol 29 (2) ◽  
pp. 319-330 ◽  
Author(s):  
Ronald J. Daigle ◽  
David C. Hayes ◽  
Philip W. Morris
Keyword(s):  
Educational Experience ◽  
Talk Show ◽  
Occupational Fraud ◽  
Daytime Television ◽  
Recent Edition

ABSTRACT In this case, students develop their understanding of how occupational fraud is committed and detected. They also learn about the traits of victim organizations and characteristics of fraud perpetrators. The students develop their understanding of occupational fraud by applying concepts in the most recent edition of the Association of Certified Fraud Examiners (ACFE) Report to the Nations on Occupational Fraud and Abuse (ACFE 2012, hereafter referred to as the Report) to two daytime television talk show episodes in which the hosts (Montel Williams and Dr. Phil) interview individuals convicted of occupational fraud. The results of data collected reflect that students completing the case significantly increased their knowledge about how occupational fraud is committed and detected. Students also significantly increased their knowledge of traits of victim organizations and characteristics of fraud perpetrators. Students reported it was a valuable educational experience to apply knowledge gained to two real situations as documented on daytime television talk show episodes. They also enjoyed the case and thought they would benefit from more cases like this one.

Corruption as distinct crime: the need to reconceptualise internal control on controlling bureaucratic occupational fraud

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ach Maulidi ◽  
Jake Ansell
Keyword(s):  
Local Government ◽  
Internal Control ◽  
Local Governments ◽  
Internal Controls ◽  
Financial Statement Fraud ◽  
Content Type ◽  
Practical Applications ◽  
Occupational Fraud ◽  
Asset Protection ◽  
Control Framework

Purpose The purpose of this study is to provide theoretical guidance that enables local governments to deal with occupational fraud. Design/methodology/approach The quantitative approach is used to examine the efficacy of the Committee of Sponsoring Organisations of the Treadway Commission (COSO) internal control framework in tackling occupational fraud in local government. To achieve the goals, the authors performed a survey of the Indonesian auditor institutions. Findings It is not appropriate to argue that all types of local government fraud can be deterred by a single internal control. The study suggests that COSO internal controls are not effective for dealing with corruption cases. However, the authors do find the efficacy of those controls are obvious for controlling asset misappropriation and financial statement fraud. This result indicates that if the COSO internal control framework is only designed for routine financial control and asset protection, it significantly and negatively influences its efficacy to deal with occupational fraud. This study has both theoretical and managerial implications, discussed separately. Originality/value In the field of prevention, the authors cannot make generalised theories and approaches for dealing with occupational fraud. Whilst previous authors have offered fraud deterrents in terms of internal controls, they have failed to realise the need to understand their effectiveness for particular forms of fraud. This paper sheds light on the effectiveness of internal controls in achieving their goals. This has both practical applications and stimulates theoretical insights.

Solving the “Mystery” of Profiling Fraud: Teaching Students About Occupational Fraud by Examining Episodes of Mystery Diners

2018 ◽  
Vol 3 (1) ◽  
pp. A1-A15
Author(s):  
Ronald J. Daigle ◽  
David C. Hayes ◽  
Dwayne N. McSwain
Keyword(s):  
Television Show ◽  
Occupational Fraud ◽  
Post Test ◽  
Survey Results ◽  
The Many ◽  
Insight Into

ABSTRACT Students learn about the many different aspects of occupational fraud by reading the Association of Certified Fraud Examiners (ACFE) Report to the Nations on Occupational Fraud and Abuse (Report) and applying what they learn to one of two episodes of the television show Mystery Diners, which features an undercover fraud investigation in a restaurant setting. Applying the ACFE Report to a setting generally familiar to students helps them gain insight into occupational fraud. Pre-/post-test and survey results reveal that students significantly increased their knowledge of how occupational fraud is committed and detected, traits of victim organizations, characteristics of perpetrators, and case results (what actions are or are not taken against perpetrators) across two different episodes and two editions of the ACFE Report. Feedback shows students found the case valuable and enjoyable and would find more cases like this beneficial. Instructors can modify the case for other episodes (more than 100 are available) and further editions of the ACFE Report to help students learn about occupational fraud.

Main Components of Occupational Fraud

2016 ◽  
pp. 35-57
Keyword(s):  
Occupational Fraud ◽  
Main Components

The patterns of the numbers used in occupational fraud schemes

2019 ◽  
Vol 34 (5) ◽  
pp. 606-626 ◽  
Author(s):  
Mark J. Nigrini
Keyword(s):  
Internal Control ◽  
Classification Scheme ◽  
Fraud Detection ◽  
Financial Statement ◽  
Future Research ◽  
Research Papers ◽  
Content Type ◽  
Court Records ◽  
Occupational Fraud ◽  
Practical Implications

Purpose This study aims to classify the numbers used in recent financial statement, corruption and asset misappropriation fraud schemes in such a way that these classes can be used to design effective proactive analytics-based fraud detection tests. Design/methodology/approach The data sources for the classification scheme include the court records of fraud prosecutions, investigative reports and research papers related to fraud cases. Findings Fraudulent numbers are most often amounts that are round, have a strong period-over-period growth, are just above or below internal control thresholds or other targets, are deviations from Benford’s Law, are purposeful duplicates of authentic transactions, are outliers due to being excessively large and are excessively rounded up or down. The study includes several examples of fraudulent numbers. Research limitations/implications The fraudulent number types are based on a sample of fraud-related court documents, and the sample might not be representative of the population of detected and undetected frauds. Further research is needed into the detection of corruption/bribery schemes. Practical implications The results are important for auditors and forensic accountants running proactive fraud detection tests. The discussions emphasize that the analysis should include refining and rerunning the tests, and then using groupings and filtering to deal with false positives. The importance of an effective audit of the notable transactions is stressed in the concluding section. Originality/value The study is an original in-depth coverage of the patterns found in fraudulent numbers. The discussion sections review implementation issues and considerations for future research.

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