Accounting All-in-One For Dummies (+ Videos and Quizzes Online), 3rd Edition

Chapter 6

Scheming Scams

IN THIS CHAPTER

Examining frauds committed by businesses against the public

Recognizing frauds committed against businesses

Focusing on frauds against the government

Getting acquainted with the Ponzi scheme

This chapter introduces some of the most common types of fraud committed by businesses, against businesses, and against the government. The goal here isn’t to give you all the details about every type of fraud imaginable. Instead, this chapter simply gets you thinking about what fraud often looks like so you’ll have a sense of the scope of work an accountant may encounter when addressing possible fraud — the willful intent to deceive.

Frauds Committed by Businesses

Sometimes, the pressure to earn a profit drives business owners, executives, and managers to commit fraud. Business owners get greedy, executives are driven to please the stockholders, and managers are eager to keep their jobs and earn bonuses and recognition from their superiors. All these motivations and more often tempt people in business to commit fraud. The following sections explain ...