Assignment Instructions Generally, fraud poses an incredible threat to organizations of all types and sizes, in all parts of the world. What is fundamental to understand Fraud Risk Management...

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Assignment Instructions



Generally, fraud poses an incredible threat to organizations of all types and sizes, in all parts of the world. What is fundamental to understand Fraud Risk Management techniques is how organizations are attempting to prevent, detect, and investigate fraud. This is a key body of knowledge that would help anti-fraud professionals reduce the incidence of fraud and white-collar crime.



The 2020 ACFE Report to the Nations has declared that among the various kinds of fraud that organizations might be faced with, occupational fraud is likely the largest and most prevalent threat. Occupational fraud, which is defined as the fraud that is committed against the organization by its own officers, directors, or employees, constitutes an attack against the organization from within, by the very people who were entrusted to protect its assets and resources.




Assignment Requirements:



Provide a critical analysis and evaluation about occupational fraud cases in the following critical areas:



1) The characteristics of the organizations that are victimized by occupational fraud:
For the question one, discuss the characteristics of the organizations that are victimized by occupational fraud, give example and analyse the findings.


(150words)


2) The methods by which occupational fraud risk is assessed:
Discuss the methods, and give real time examples
(300 words).


3) The means by which occupational frauds are detected:
Discuss how occupational fraud is detected and provide opinion and analysis of the methods
(300 words)


4) The means by which occupational frauds are prevented:
Discuss how occupational fraud is prevented and provide opinion and analysis of the methods
(300 words).


5) In your opinion, to what extent fraud response plan implemented by organizations of your choice can deter and detect occupational fraud events:
Discuss the theory of fraud response plan and how can detect and deter occupational fraud events and connect the analysis with
the fraud cases of Enron, WorldCom and American International Group.
(300 words).


6) The results of the cases after the frauds have been detected and the perpetrators identified.
Discuss for the above three cases the results of frauds detected and which penetrators identified and how
(300 words)


7) A critical reflection on corporate fraud risk assessment, prevention, detection, and responses:
Use critical thinking, analyse and tell your opinion by giving examples and based on references
(900 words).






You must cite all sources on which you have relied, for example textbooks, journal articles, web pages etc., using the APA 6th (Harvard) Style system.








See the attached PowerPoints with relevant theory and information.

Answered 4 days AfterAug 14, 2022

Answer To: Assignment Instructions Generally, fraud poses an incredible threat to organizations of all types...

Rochak answered on Aug 18 2022
63 Votes
Characteristics of the organizations that are victimized by occupational fraud
Occupation fraud is a type of fraud which is committed by the organization’s employees. The characteristics of the organization that are victimized (Holtfreter 2005) by occupational fraud are:
· Asset Misappropriation: Where the asset owned by the company is no longer utilized correctly and they have misappropriated handled or used
· Bribery and corruption: The employees are part of
corruption which has led to the brand damage of the organization
· Financial statement fraud: Financial statement is one of the material information which is used by the organization people and the people outside the organization to make a decision and in this case the fraud which might occur leads to a very bad impact on the economy
The other characteristic of occupational fraud is that this happens with an organization who are having less than 100 employees or more than 1000 employees as they are more prone to the fraud.
Methods of accessing occupational fraud risk
Accessing occupational fraud risk is very important because the risk has occurred and now the organization has to assess the risk to which the fraud has given rise this can be done using various methods by following certain steps which will help the organization to see what the risk is and how that can be mitigated.
The access is aimed to address the business vulnerabilities that have arisen because of the internal or external fraud conducted by the organization's employees.
Occupational fraud is conducted by the organization’s employees when the internal control of the organization is not good.
The steps to conducting a fraud risk assessment are:
· Identify the risk: The first and most important step is to identify the risk
· Quantify the risk: The next step is to quantify the risk which means identifying the impact the risk may cause, and if the impact is very high the risk will be of high priority and if not, it will be something which will be of low priority
· Respond to risks: The risks which have been identified now have to be mitigated and for this, the response which must be taken will be identified in this step
· Monitor and review the risk: After implementing that is responding to the risk the monitoring and reviewing of the risk starts which is done to make sure that the risk is mitigated and is not having any impact on the organization ‘s activities
· Report risk: After completing all the steps the risk must be reported to make sure that it is recorded and if the same risk arises in the future the risk can be tackled in a better manner
Means by which occupational frauds are detected
Occupational fraud is one kind of fraud which is conducted by the organization's employees, and this is done to benefit by damaging the company's reputation. There are various methods/means by which occupational frauds can be detected, some of which are:
· Internal Audit: Audit is one of the popular ways to detect any fraud, and with the help of an internal audit the organization which has been affected by the fraud can set up a team internally to identify what kind of fraud has been conducted and what is the risk which the company has to bear as a result of the fraud.
· External Audit: Many times, the internal audit is not effective because of the management being playing a part in the fraud and in this case the best way to detect an occupational fraud is by doing external audits regularly to see whether the company is having any risk of frauds or not
· Establishing a code of conduct: This is like a front-line defence that the organization can undertake to detect organizational fraud by setting the right code of conduct, this will help in setting the right goals which will make sure that employees report the frauds which they might find occurring in the organization
Though detecting occupational fraud is helpful and does make sense because it helps in taking the right action to see that the damage which can occur is not much, overall, the occupational frauds are the ones which damage the reputation of the company and therefore it is best to set up the first line of defense to make sure that the fraud does not occur at all.
Preventing occupational frauds
Occupational fraud is very common with the level of internal control that an organization has, and therefore it is very important to implement the strategies which help in preventing the frauds and at the same time mitigating the risk which might arise as a result of these frauds. Preventing occupational fraud is important because of the damage that fraud can have on organizations.
The strategies that...
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