Page 8 - Risk Management Bulletin Jan- Mar 2021

RMAI BULLETIN JANUARY TO MARCH 2021

o A little over a year after starting at Goldman Examples of Fraud: Asset Misappropriation
Sachs, she began forging her bosses' o Theft of cash
signatures on personal cheques to make o False payment
payments into her own accounts. Realizing requests
she had got away with it, she continued to o Cheque fraud
steal money by issuing forged cheques and o Billing schemes
making false money transfers.
o Misuse of accounts
In any business, the risk of fraud can be reduced. o Inventory and fixed
assets
Internal control measures can particularly reduce the
"opportunity" angle of the Fraud Triangle. o Procurement
X Final Conclusion on the Case Study: o Payroll
o After four years of siphoning off vast amounts o Improper revenue
of money, she was eventually caught when recognition
her boss at the time decided to make a six- o Misstatement of
figure donation to his former college. He took assets, liabilities
a look at his bank accounts to see if he could and/or expenses
cover the donation and was astonished to find
the balance on the accounts become so little. o Other accounting
misstatements
o He investigated further and realized that large
sums had been transferred to an unknown o Falsified
employment
account.
credentials e.g.
o Secretary was the obvious suspect. By this
qualificationsand
time, she had actually stolen around £3.3 references.
million
o Other fraudulent
internal or external
Fraud Classification/Categories: documents
Fraud is classified under different categories as under:

Types of Fraud

Broad
Categories

Asset Financial
Misapproptiation Statement Corruption
Fraud

Non Non Conflict Bribery &
Cash Financial of
Cash Financial Extortion
Interest

Fig. 3 - Types of Frauds

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