Introduction Fraud is defined as dishonest activity causing actual or potential financial loss to any person or entity, including theft of money of other property, by employees or persons external to the entity, and where deception is used at the time, immediately before or immediately following the activity1. Fraud is an emerging problem both nationally and globally and is an increasing problem all around the world2. The most significant fraud of state services in the short history of NZ was the scandal of the Otago District Health Board (ODHB) which was uncovered in 20083. The Chief Information Technology Officer (CIO) at the time was the 47-year-old Michael Swann, whom was instrumental to this case of fraud. Swann was able to perpetrate a multimillion-dollar fraud with the help of his friend Kerry Harford by generating illegitimate and fallacious computer, software and insurance invoices. ODBH was defrauded of almost $17 million NZD over 6 years3. A repercussion of this scandal as had detrimental implications on the stakeholders of ODHB and we will look into that in this report. We will also outline the auditor’s role and responsibilities in this report, and if they are liable for any of the damages suffered by plaintiffs. We will conclude with briefly covering the outcome of the fraud case and the current situations are for those involved. The Organisation The ODHB was a government-funded organisation that served approximately 70% of people in the New Zealand city of
An example of poor practices from an organisational point of view is the mid-Staffordshire NHS scandal, which showed
Fraud is defined as the intentional deception or misrepresentation of facts that can result in unauthorized benefit or payment. Abuse is
Did Westby commit fraud? Fraud constitutes the making of false statements (1) with the knowledge of its falsity or reckless indifference to the truth (2) the intent that the listener relies on it (3) the result that the listener does so rely on it, and (4) the consequence that the listener is harmed.
For purposes of the Statement, fraud is an intentional act that results in a material
An action is considered unethical when it goes against widely understood and established societal, professional and/or personal value systems. Fraud is wrongful behavior that is done with the intention to deceive others and typically involves a criminal act. Illegal acts are committed when established laws are broken. Walt Pavlo adversely progressed from displaying unethical, fraudulent behavior to outright illegal acts.
(TCO 5) Fraud is an intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage to that party. In our readings and discussions we have seen several examples of fraud in business. Using that experience (1) provide an example of a common fraudulent practice in business with an explanation of how the practice works and (2) name and describe each of the elements of the Fraud Triangle.
It is important to first gain an understanding of the various types of fraud, in order to aid understanding in regards to the prevention of fraudulent activity. This paper begins with a review of the definition of financial fraud, and identification of the different fraud types. Further, included is an examination of what motivates individuals to commit fraud, including an identification of some of the method in which people commit fraud. A discussion of the importance of the fraud triangle, and how rationalization contributes to fraud is a key area of focus. Finally, there is an examination of some controls that prevent and detect fraudulent behavior, including the value and importance of understanding the nature of fraud for
to a conclusion, dealing with any situation. What is fraud? Fraud is when you give false
The stakeholders in this fraudulent case of WorldCom consist of Bernie Ebbers, Scott Sullivan, Buford Yates, David Myers, Cynthia Cooper, and Betty Vinson belong to the company. While the other stakeholders would consist of the creditors, Andersen (accounting firm), investors, and the public. This fraudulent act committed within WorldCom impacted every single stakeholder in a way. Either in a negative or positive way, most of the impact was caused with harm to everyone. The main individuals such as Ebbers, Sullivan, and Vinson all had major consequences as resulting with the fraud. Criminal trials were a major result with their fraudulent acts within WorldCom. Cooper was a lifesaver by most of the community. Aside from these individuals, the rest also got affected by the fraud. Investments conducted by the investors were all lost within the fraud process. The impact towards much of the image for Andersen was ruined. Many of the public lost their trust on the honesty and professionalism of Andersen and other certified public accounting firms. The entire employees from the top management to the smaller group of workers stayed unemployed and some with criminal punishment.
The manipulation of accounts fraud scheme is generally fulfilled by employees in top management positions and it usually involves making understatements or overstatements on financial statements making it very hard to detect. The process followed as Troy Adkins, (2015) explains is very simple. The financial statements are either overstated to show different figures in the earnings on the income statements making them look better than they actually are or the earnings in the current periods are manipulated in such a way that the revenue is understated or they inflate the current year’s expenses. The second process includes making the financial statements look worse than they are in reality. Deloitte, (2009) explains a number of ways which the accounts are manipulated where as one of the ways is to manipulate the reported earnings directly. They further explained that overstating the
Identity fraud is stealing someone’s personal information and uses it for the purpose to defraud
Financial fraud: This involves using credit cards belonging to third parties to undertake online financial transactions.
With the avalanche of accounting scandals that have rocked the public, people tend to have increasingly high expectation that auditors are accountable for detecting all frauds, while the standards require auditors to provide reasonable, but not absolute, assurance. The purpose of the report is to discuss the accountability of auditors in detecting fraud by analysing a $16.9 million fraud of Otago District Health Board (ODHB) perpetrated by Swann and Harford from 2000 to 2006. The report will explain the event, the fraud, the stakeholders, the role of auditors and the current situation.
Fraud is defined as a deliberate misrepresentation that causes a person or business to suffer damages, often in the form of monetary losses through deception or concealment. And Occupational Fraud as defined by the ACFE is the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets. Traditional fraud triangle theory by Donald Cressey explains that propensity of fraud occurring in an organization lies on three critical elements which are Pressure, Opportunity, and Rationalization.
With the remarkable improvement of people’s living standard, abundant nutritious food has caused non-communicable diseases become incredibly common nowadays, which globally causes 63% of death and it is going to continuously increase in the future. (citedO) It is necessary for people to start to attach great importance to eating habit in their daily lives. This report is about the role of public health dietitians including the organisations they work in, what they do, who they usually work with, what health problems they need to deal with, and more importantly, how do they contribute to the health system and how they will play a more important role in New Zealand’s health system in the future.