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Fraud Data Analytics Methodology by Leonard W. Vona

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Chapter 12Corruption Committed by the Company

Paying a bribe for a corrupt purpose is considered illegal in countries around the world. So, if you believe that it is a normal and customary business practice to pay bribes in a country, then stop reading. The main purpose of this chapter is to provide a framework for building a fraud data analytics plan to search your company's books for fraud scenarios for transactions associated with bribes. The secondary purpose is to provide knowledge of where and how to look for the bribes. Trust me, the task is not easy, but it is not impossible when using strategies designed to search the general ledger.

In this chapter, the expression bribes is intended to include all forms of payments that are intended to corrupt an individual. The bribe maybe a direct payment to the individual, payment for services, travel and entertainment expenses paid for the benefit of the individual, and various forms of indirect payments. Since a bribe is a legal conclusion, within this book a bribe payment will be referred to as a questionable payment.

There is legislation around the world that makes paying a bribe for a corrupt purpose illegal. The most recognized laws are the Foreign Corrupt Practices Act or the UK Bribery Act of 2010. The purpose of this chapter is not to evaluate the legal aspects of the law, but rather, use the enforcement actions and court cases as a basis for developing a fraud data analytics plan to search for transactions that link to a ...

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