Basics of Fraud
What is fraud?
This word means lying or cheating in business to get money.
Why people do fraud?
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People do fraud because they want to getbmoney this fast
Is fraud belongs to reputation
Fraud can hurt a company’s good name, also called this.
What are internal controls?
A strong rule system inside a company to stop fraud is called this.
What is theft?
If a worker takes money from the cash box, this is called…
Why can fraud reduce investor trust in a company?
Because investors lose confidence when financial statements are false, so they may stop giving money.
What is one short-term benefit companies think they gain from fraud?
They may show higher profits than reality to look successful.
What is one long-term consequence of fraud?
The company can face big losses, penalties, or even bankruptcy
Why is fraud called a “false profitability”?
Because it looks like profit on paper, but in reality, the company is losing money.
Who are the two main groups most harmed by business fraud?
Investors and customers.