SLIDE 1

“FRAUD SCHEMES: UNRAVELING

INTERNAL CONTROLS OF COMPANIES”

JANDALE JUSTINE T. AGCAOILI

EMMANUEL P. BAYLON II

BENEDICT S. BERNARDO

MISSY B. CORTES

ELIZABETH R. LAMINA

EMEE JANE M. MALANDOG

CLARIZE L. MANALO

ARJAY L. MOLINA

MICHELLE DOLLIE S. SISON

BENNIE O. YALO JR.

SLIDE 2 SISON

CHAPTER I

INTRODUCTION

Overview

“Even though fraud cases are still widely unknown, the study reveals that fraud is likely to occur at least to some extent - and usually remains
undetected.” (Maria Steinmeier, 2016)

Purpose of the Study

Statement of the Problem

1. How do the following affect employees to commit fraud schemes?

2. What are the types of fraud schemes?
3. As determined by the students, how critical is fraud inside a company?

Significance of the Study

SLIDE 3 CORTES

CHAPTER II

BACKGROUND OF THE STUDY

In relation to the Fraud Triangle

As per Smith (1973), opportunity, pressure, and rationalization cause a person to commit fraud. Pressure, as emphasized in Cressey’s
Fraud Triangle, arises in workplace and personal situations. It is about the expectation set by the company for their workers, encompassing their
interests and responses to increase of salary, financial problems, ambitions, and remunerations to employees.
SLIDE 4 BAYLON

In relation to Monetary Asset/Transaction

Starting from the principal part of the misrepresentation triangle (pressure) appears the conceivable outcomes of unlawful activities, such
as robbery of cash, burglary, and falsifying monetary records. The chance or opportunity directs how the wrongdoing is about to be committed by
the employees.
SLIDE 5 BERNARDO

In relation to Non-Monetary Asset/Transaction

Fraud schemes of non-cash assets occur when employees steal or use the company’s supplies, equipment, inventory, or property for
personal use. They are commonly unnoticed in a company, specifically when it is just of small measure. However, it is still a fraud. According to
LaVine (2018), asset misappropriation is done through using the company or client’s assets for personal gain. Precisely, it is stealing.
SLIDE 6 AGCAOILI

In relation to Accountancy, the Profession and the Industry

When poor documentation of expenditures and asset values is preserved, financial auditors may be asked to cook the books. This activity
entails creating numbers that may or may not be accurate representations of real numbers. While a company's top executives may feel compelled
to do so, the practice is not only immoral but also deceptive.
SLIDE 7 LAMINA

In relation to Ethics

It then makes sense that these fraud schemes are never construed to be legally and morally acceptable. If one of the goals of a workplace is
to become ethical, well, it can no longer be when there is untruth and dishonesty existing. One’s attitude and values can affect the way to afford
life's needs and wants. For instance, dilemmas are present to make people decide between two choices.
SLIDE 8 MALANDOG

CHAPTER III

EVALUATION OF THE CASE

5%
10%

85%

Under Suitable Conditions Inclined No Matter What

Graph 2. Occurrence of Fraud Schemes in Germany on 2012

SLIDE 9 MANALO

6% 4%
6%
7%
8%

69%

Loan Fraud Asset Misappropriation

Credit Card Fraud Internet Fraud
Theft Banking Statement Fraud

Graph 3. Common Fraud Schemes on 2012

SLIDE 10 YALO

CHAPTER IV

SOLUTIONS

1. The higher-ups and the heads of each department should know their employees more.

2. Employees must be aware of the disciplinary actions that will be taken against those who engage in fraudulent behavior.

3. The company should seek an expert’s opinion.

4. The company must use biometrics for their system.

5. The company must use biometrics for their system.

SLIDE 11 MOLINA

CHAPTER V

RECOMMENDATIONS

1. The companies should conduct seminars or training in order for the employees to be more knowledgeable on rules and regulations.

2. The head of each department should assure improvement of skills and knowledge.

3. The companies should adopt reviews and comments by their employees and conduct further regular surveys or interviews
regarding satisfaction and preferences that should be utilized to encourage employees to work with honesty and integrity.
4. The companies should adopt reviews and comments by their employees and conduct further regular surveys or interviews
regarding satisfaction and preferences that should be utilized to encourage employees to work with honesty and integrity.
5. The students highly recommend that the future students seek further towards disseminating awareness on fraud schemes within internal
controls of companies and come up with another analysis to ensure a healthy workplace for all stakeholders.

*insert recorded vid ni Molina*

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“All credits to the references used and based from. 070221.”