Answer the following 7 questions
• How does building a culture of honesty and high ethical conduct help reduce the possibility of fraud?
• What are some ways in which organizations help this type of culture?
• Are they effective? Why or why not?
In answering the question, support your answer with an actual or hypothetical example.
2- People who commit fraud usually display changes in behavior. Give three examples of behavior changes that, if observed, might suggest the person is committing fraud. For each example, give a reason that it suggests fraud but also provide a reasonable explanation for the suspicious behavior other than fraud. For example, someone who suddenly is living beyond their means could be engaging in fraudulent behaviors for those funds. But that person might have also just inherited a sum of money from a dead relative and is not engaging in fraud.
3-Investigation of fraud acts can occur through various sources, both public and private. What are some differences between public sources of information and private sources of information? Identify key differences and explain how they assist investigators. Address the role of the internet in fraud investigation in your post as well.
4-Employees, such as co-workers and managers, are often in the position to detect fraud, yet they lack training in this area. Answer the following questions:
• Should fraud training be mandatory?
• What barriers exist, if any, to implementation of fraud training?
• Further, what are some reasons that employees suspicious of fraud might not report it? What can be done to encourage these suspicious employees?
5-Compare and contrast financial statement fraud with embezzlement and misappropriation, including the legal elements of each and who commits each type of fraud. Also contrast the different kinds of fraud with respect to who benefits. Support your statements with a researched example of a financial statement fraud, embezzlement or misappropriate case.
6-You keep reviewing the financial statement but cannot seem to see where analysis is going wrong. It looks like inventory is getting larger and larger, but you know that you haven’t seen any growth in actual levels of inventory that financial statements seem to be indicating. You just finished a comprehensive audit of all the physical controls of inventory so it is doubtful that inventory is being stolen. Everything else in the financials appears fine. In fact, they seem to indicate that the company is improving in profitability.
Answer the following three questions:
• What might be a valid reason for the increase in inventory cost?
• Assuming that fraud is being committed, how could a fraud perpetrator commit this type of fraud?
• What could be done to prevent this type of fraud?
7-Search the internet for a recent story on information being stolen from a company. Examples include: stolen credit card numbers, personal information, and proprietary secrets. Summarize the article in a well-written paragraph. Then, detail several measures that could have prevented the fraud and possible symptoms that could have detected this fraud.
Your answers are to be at least 250 words. You should cite at least one credible resource (the textbook, module lecture, required readings, and recommended articles are excellent resources).