Accounting Fraud
FRAUD
In criminal law, fraud is the crime of deliberately deceiving another person or company in order to damage them, usually for personal gain. Defrauding people of money is the money is the most common type of fraud. Some types of fraud include false accounting, check fraud, and Internet fraud.
Accounting fraud or scandals are business scandals that come from the tampered reports, usually by long time employees or trusted executives in either a large corporation or small business. In order to hide serious financial problems, these companies will use fraudulent bookkeeping to overstate sales and income, inflate the worth of the company’s assets, or state a profit when the company is operating at a loss. These altered records are then used to receive investment in the company’s bond or to receive loans to delay the collapse of the company that is going financially bankrupt. These scandals usually involve complex methods to misuse or misdirect funds, overstate revenues, understate expenses, overstate the company’s assets or understate the company’s liabilities in order to attract more customers and be able not to get caught. In 2002, there was a huge number of accounting scandals that arose and became known to the public in the US. Firms such as Arthur Andersen, Deloitte & Touche, Ernest and Young, and many others have admitted to or have been charged with preventing the publication of falsified reports which gave the misleading impression of the company’s financial status.
Check fraud is when someone uses one or more checks or checking accounts to illegally get money that does not exist within their legal ownership. The most common method of check fraud is called check kiting. It is someone steals the money during the time period the check has been deposited to the bank but has not yet cleared. There are several types of check fraud. The first is when you illegally borrow money. This usually involves a second bank or third party in order to delay the
In criminal law, fraud is the crime of deliberately deceiving another person or company in order to damage them, usually for personal gain. Defrauding people of money is the money is the most common type of fraud. Some types of fraud include false accounting, check fraud, and Internet fraud.
Accounting fraud or scandals are business scandals that come from the tampered reports, usually by long time employees or trusted executives in either a large corporation or small business. In order to hide serious financial problems, these companies will use fraudulent bookkeeping to overstate sales and income, inflate the worth of the company’s assets, or state a profit when the company is operating at a loss. These altered records are then used to receive investment in the company’s bond or to receive loans to delay the collapse of the company that is going financially bankrupt. These scandals usually involve complex methods to misuse or misdirect funds, overstate revenues, understate expenses, overstate the company’s assets or understate the company’s liabilities in order to attract more customers and be able not to get caught. In 2002, there was a huge number of accounting scandals that arose and became known to the public in the US. Firms such as Arthur Andersen, Deloitte & Touche, Ernest and Young, and many others have admitted to or have been charged with preventing the publication of falsified reports which gave the misleading impression of the company’s financial status.
Check fraud is when someone uses one or more checks or checking accounts to illegally get money that does not exist within their legal ownership. The most common method of check fraud is called check kiting. It is someone steals the money during the time period the check has been deposited to the bank but has not yet cleared. There are several types of check fraud. The first is when you illegally borrow money. This usually involves a second bank or third party in order to delay the