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Which are the common types of fraud?

Which are the common types of fraud?

Answers

Wilfred
•• Manipulating, forgery, alteration or falsification of accounting records or supporting documents from which financial statements are prepared.
•• Misappropriation of company assets e.g. using a company vehicle for private undertakings, stealing physical assets and embezzling receipts.
•• Misapplication of accounting policies e.g. classifying a capital expenditure and revenue expenditure.
•• Inappropriate adjusting assumptions and changing judgments used to estimate account balances. E.g. the management may insist on providing a 5% provision for bad and doubtful debts even where past debt collection history shows that the actual default rate is about 15%.
•• Suppression or omission of effects of a transaction on accounting record e.g. placing a genuine debtor well known bad debts in the balance sheet thus misrepresenting the financial position of the company.
Wilfykil answered the question on April 11, 2019 at 12:27

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