Professional Documents
Culture Documents
Recognizing the
Symptoms of Fraud
CHAPTER 5
Learning Objectives
1. Understand how symptoms help in
the detection of fraud.
2. Recognize and understand
accounting symptoms of fraud.
3. Identify internal controls that help
detect fraud.
4. Identify and understand analytical
symptoms of fraud.
Learning Objectives
5. Realize how lifestyle
changes help detect
fraud.
6. See how behavioral
symptoms help detect
fraud.
7. Recognize the
importance of tips and
complaints as fraud
symptoms.
Discuss the Symptoms of
Fraud.
List 6 Symptoms of Fraud.
Accounting Anomalies -
Ledger Doesnt Balance
Internal 1=1
Control
Weakness -
No Vacation Analytical
Anomalies
List 6 Symptoms of Fraud
Extravagant
Lifestyle
Tips &
Complaints
Unusual
Behavior
List Irregularities to Look for in
Source Documents?
Missing Documents Payee Names &
Stale Items on Addresses = Employee
Bank Reconciliation Names & Addresses
Excessive Voids or Past Due A/R
Credits Reconciling Items
Payee Names &
Altered Documents
Addresses =
Customer Names & Duplicate Payments
Addresses Second Endorsements
Photocopied on Checks
Documents
Accounting Anomalies
Faulty Journal Entries
Greed
Guilt
Fear
Stress
Behavior
Changes
List Some Unusual
Behaviors.
Insomnia Inability to Look
Increase Drinking People in the Eyes
Unusually
Drug Abuse
Belligerent
Unusually Irritable & Working Standing
Suspicious Up
Unable to Relax Sweating
Lack of Pleasure in Increased Smoking
Former Pleasing Fear of Getting
Things Caught
Review the Fraud Triangle.
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Ra
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liz
ive
ati
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on
Pe
Perceived Opportunity
Tips & Complaints Term
Match
Steps Taken by
Theft Perpetrator to
Hide the Fraud
Converting Stolen
Concealment Assets to Cash &
Spending the Cash