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Why is fraud at the heart of the creditor relationship?
Fraud has always been at the heart of the creditor or debtor relationship, Fraudulent financial reporting (FFR) arises because the top managers reporting accounting numbers intentionally misrepresent underlying economic conditions to advance their own economic interest.
How is a fraud characterized in legal terms?
Fraud was characterized in legal terms and moral terms; commercial and financial crises were linked to transactions that violate law and ethics, and the detection of fraud was accordingly incumbent upon the State.
Who are the people involved in investment fraud?
Many fraud cases involve complicated financial transactions conducted by ‘white collar criminals’, business professionals with specialized knowledge and criminal intent. An unscrupulous investment broker may present clients with an opportunity to purchase shares in precious metal repositories, for example.
Which is an example of an intentional fraud?
Frequently, there are commercial pressures to report an unrealistic level of earnings, which can take precedence over controls designed to prevent fraud occurring. Any business asset can be stolen by employees or third parties, or by employees and third parties acting in collusion. Examples of common employee and management fraud include:
Last Update: Oct 2021
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