OPPapers.com

Organizational Fraud

ORGANIZATIONAL FRAUD

[pic]

Submitted by:
Amit Goel(amigoel@gmail.com)
Mohit Goel

Executive Summary

For many organizations, “getting it right” or “getting it wrong” is a matter of survival. This study talks about the issues like, ‘organisational fraud’, ‘ethics’ & ‘empowerment’ in an organisation and their relation to standards of good behaviour in order to explore various ways in which occurrences of ever increasing frauds can be checked. Organisational Fraud can be perpetrated by those outside an organization (“third parties”), by employees, or through the collusion of employees and third parties. Numerous surveys in recent years have reported that the majority of fraudsters are employees, with more than half of these being from management grades.

With just one fraud Blue Chips turns into potato chips!!!!!

While saluting the rags to riches (and now riches to rags?) stories of organizations, we must also remember that for a Public Ltd Co., the stakeholders interests are foremost, not just shareholders. There must be more transparency between the management and employees and also the clients and the general public. Something of this sort happened with Enron and its Auditing firm "Arthur Anderson", now Accenture. They used to say ' you can teach Accountancy to an honest person but not honesty to an (dishonest) Accountant'.

"You can fool some of the people all the time; All the people for some of the time but not all the people all the time[1]" - how true!!!!!
Table of Contents
1. INTRODUCTION 7

2. OBJECTIVES OF STUDY 8

3. DEFINING FRAUD 8

3.1 Types of fraud 8

3.2 Legal Elements of Fraud 9

3.3 How big is the problem? 10

3.4 Who are the perpetrators? 10

3.5 Why do people commit organizational fraud? 11

3.5.1 Motivation 11

3.5.2 Opportunity 11

3.5.3 Rationalization 11

3.6 Red Flags of Organizational Frauds 11

3.6.1. Structural red flags 11

3.6.2. Personnel red flags 12...