Tools Used for Examining Frauds Term Paper Example | Topics and Well Written Essays - 2000 words

Tools Used for Examining Frauds - Term Paper Example They grab the attention of the clients by promising them quick money (Coderre, 2009). Detection of financial frauds required experienced forensic accountants. They are basically accountants, auditors, and investigators of financial and legal documents who are hired by the company to look into possible financial frauds taking place. There are different varieties of financial frauds. The range can spread from a simple theft to more complicated frauds and identity thefts. Some of the common types of financial frauds are; check fraud, banking/identity fraud directs theft, invoices and payments fraud. Four basic frauds that occur in a business are; Embezzlement, internal theft, payoffs and kickbacks and skimming (Imoniana, Antunes & Formigoni, 2013). Embezzlement which is also known as larceny occurs when the personnel who are appointed to control the funds, use them illegally for their personal gain (Petrucelli, 2013). Internal theft takes place when company assets such as company products or supplies are stolen by the employees. This causes inventories to shrink down. Pay-offs and kickbacks are kinds of bribery which are often reported by the companies. These occur when employees take money from the receipt and that transaction is not recorded. Other important frauds are Money laundering, Mortgage fraud, Racketeering/ RICO, Securities fraud, payroll-fraud, manipulation of sales figures, tax evasion, use of fictitious invoicing, stealing money from company accounts, duplicate billing, accounts receivable fraud, financial statement fraud, etc. Money Laundering is the process of movement of illicit money and other profits through legitimate channels with the purpose of disguising the illegal source of the money to prevent from tax officials (Wells, 2010).