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Fraud Examination 5th Edition by Steve Albrecht,Chad Albrecht,Conan Albrecht, Mark Zimbelman
Edition 5ISBN: 978-1305079144Fraud Examination 5th Edition by Steve Albrecht,Chad Albrecht,Conan Albrecht, Mark Zimbelman
Edition 5ISBN: 978-1305079144 Exercise 1
You are having lunch with another student. During the course of your conversation, you tell your friend about your new fraud examination class. After you explain the devastating impact of fraud on businesses today, she asks you the following questions:
1. What is the difference between fraud and error
2. With all the advances in technology, why is fraud a growing problem How would you respond to your friend
1. What is the difference between fraud and error
2. With all the advances in technology, why is fraud a growing problem How would you respond to your friend
Explanation
Verified
Verified
Frauds are deliberate attempt done by its preparators in order to gain benefit by concealment of financial statements.
1.The difference between fraud and error are as follows:
1. The main difference between fraud and error is that its being intentional or unintentional act. Fraud is an intention act which is the deliberate attempt to conceal financial statement to make profit at the expense of another person whereas error is an intentional act which is not done for one's benefit. It is done by mistake.
2. Frauds are preplanned and there is always motive behind it whereas errors are unplanned. Errors are just human error and there is no motive behind it. Common type of errors is typing error, omission of an amount or their disclosure.
3. Fraud involves using trickery deception methods in order to earn profits or acquire some assets whereas error involves does not involve any trickery acts and just arises because of ignorance.
2.It is true that there have bee significant advances in technology in the last decade and it has helped in detecting fraud and limiting the scope to deceiving the people. However, it is important to keep in mind that with advances in technology the problems people face have also changed. For example, cyber crime in today's world is serious threat to companies and investors around the world. People use to carry a lot of cash on their hand or in their houses but now its all in digital form so the physical loss of money has been reduced by the cyber crime has increased where people loose money from their bank account by clicking on the internet.
Fraud is a growing problem because of the following reason:
• The fraud is growing problem because the nature of fraud has changed, it has shifted from being more physical fraud where people are losing money to digital fraud where their personal data are leaked on the internet.
• With the change in technology, the deceiving elements of the society have found different ways where people are lured by something large gain and they end up losing money.
• The fraud has also been growing because of the technological illiteracy. People those who have mastered the technology can manipulate the ones who are not very much aware of how to use these technologies.
• The fraud has also been a growing problem because now with digital crime its is difficult as to who is doing the crime. It can be any person sitting in a any part of the world having access to internet and is difficult to persecute them legally.
1.The difference between fraud and error are as follows:
1. The main difference between fraud and error is that its being intentional or unintentional act. Fraud is an intention act which is the deliberate attempt to conceal financial statement to make profit at the expense of another person whereas error is an intentional act which is not done for one's benefit. It is done by mistake.
2. Frauds are preplanned and there is always motive behind it whereas errors are unplanned. Errors are just human error and there is no motive behind it. Common type of errors is typing error, omission of an amount or their disclosure.
3. Fraud involves using trickery deception methods in order to earn profits or acquire some assets whereas error involves does not involve any trickery acts and just arises because of ignorance.
2.It is true that there have bee significant advances in technology in the last decade and it has helped in detecting fraud and limiting the scope to deceiving the people. However, it is important to keep in mind that with advances in technology the problems people face have also changed. For example, cyber crime in today's world is serious threat to companies and investors around the world. People use to carry a lot of cash on their hand or in their houses but now its all in digital form so the physical loss of money has been reduced by the cyber crime has increased where people loose money from their bank account by clicking on the internet.
Fraud is a growing problem because of the following reason:
• The fraud is growing problem because the nature of fraud has changed, it has shifted from being more physical fraud where people are losing money to digital fraud where their personal data are leaked on the internet.
• With the change in technology, the deceiving elements of the society have found different ways where people are lured by something large gain and they end up losing money.
• The fraud has also been growing because of the technological illiteracy. People those who have mastered the technology can manipulate the ones who are not very much aware of how to use these technologies.
• The fraud has also been a growing problem because now with digital crime its is difficult as to who is doing the crime. It can be any person sitting in a any part of the world having access to internet and is difficult to persecute them legally.
Fraud Examination 5th Edition by Steve Albrecht,Chad Albrecht,Conan Albrecht, Mark Zimbelman
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