Chapter 4, Problem 1RQ

1.

To determine

Fraud: Presentation of inaccurate data, intentionally for personal gains. There could be several types of fraud like petty cash fraud, occupational fraud, and others.

To Define: Occupational fraud.

Explanation of Solution

Occupational fraud: Occupational fraud, refers to the fraud carried out intentionally by the professional for personal benefits, by misstating the information in the accounting statements. This is intentionally done by the professional individual, who has the authority and access over the financial statement of a company, for the personal gains.

2.

To determine

Occupational fraud: Occupational fraud, refers to the fraud carried out intentionally by the professional for personal benefits, by misstating the information in the accounting statements.

To Describe: The two-common means for occupational fraud.

Answer to Problem 1RQ

The two-common means for occupational fraud are:

• Financial statement manipulation.
• Misuse of the resources of the company.

Explanation of Solution

The two-common means for occupational fraud are:

• Financial statement manipulation:

  This refers to the abetment done to the financial statement, by the individuals who have access to the financial records of the company for the individual’s ulterior reasons.

• Misuse of the resources of the company:

  This refers to the exploitation of the resources of a company, by the individuals for their personal gains.