Fraud Examination and Financial Forensic

  1. Legal Elements of Fraud
    • •A material false statement
    • •Knowledge that the statement was false
    • when it was spoken
    • •Reliance on the false statement by the
    • victim
    • •Damages resulting from the victim’s
    • reliance on the false statement
  2. What is Fraud?
    is an intentional deception, whether by omission or co-mission, that causes its victim to suffer an economic loss and/or the perpetrator to realize a gain.
  3. deception
    • implemented through fraud schemes
    • force,trickery or larceny. Those offenses that employ trickery are frauds.
  4. Fraud: related financial crimes
    • •Larceny
    • •Conversion
    • •Embezzlement
    • •Breach of Fiduciary Duty
  5. Major categories of fraud:
    • •Asset Misappropriation
    • •Corruption and Abuse
    • •Financial Statement Fraud
    • •Other Fraudulent Statements
  6. What is financial forensics?
    • Financial forensics is the application of financial principles and theories to facts or hypotheses at issue in a legal dispute and consists of two primary functions:
    • Litigation Advisory Services
    • Investigative services
  7. The Financial Forensic Professional’s Skill Set
    • –Technical competency
    • –Investigative proficiency
    • –Thinking critically
  8. Auditing
    Financial statement auditing acts to ensure that financial statements are free from material misstatement.
  9. Fraud examination
Card Set
Fraud Examination and Financial Forensic
Chapter 1