Introduction Fraud Examination

What is Occupational/hub Fraud and Abuse? 

Use of occupation / hub
For personal enrichment/memperkaya
Through deliberate misuse or misapplication / sengaja meneruskan
Of employer’s resources/assets

Defining Fraud / penipuan

Four elements:

1. Material false statement
2. Knowledge that the statement was false
3. Reliance (percaya) on the statement by victim
4. Damages/perusakan

Defining Abuse / salah guna

A deceitful act / tindakan bohong

A corrupt practice or custom / praktek, kebiasaan korup

Examples:

• “Borrow” company equipment
• Use sick leave when not sick
• Slow or sloppy work / pelan dan lemah kerja
• Surf the Net at work / jaringan lbh batas
• Work under influence of drugs/alcohol

Research in Occupational Fraud and Abuse

First defined “white-collar crime”

• Criminal acts of corporations
• Individuals in corporate capacity

Theory of differential association

• Crime is learned
• Not genetic
• Learned from intimate personal groups

Studied embezzlers 

Why people become “trust violators”

Developed the Fraud Triangle

The Fraud Triangle

Nonsharable Problems

• Violation/pelangaran of ascribed obligations
• Personal failures
• Business reversals /rugi
• Physical isolation
• Status gaining
• Employer-employee relations