Fraud Tree
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FRAUD TREE
Introduction
Internal control is the main tool for fraud prevention; it is a process whose
The objectives are: prevention of fraud and protection of assets.
Fraud is an action carried out with the intent of personal gain in order to appropriate
part or all of the assets of a third person or entity.
Frauds are causing substantial losses to companies, it is of vital importance to take
actions to prevent and detect fraud
Several schemes or methods for committing fraud have been identified, all of which are very important.
given the frequency and types of the studied frauds, however the most prominent or
The most frequently committed are the embezzlement of assets and fraud in the statements.
financial
The embezzlement of assets is mostly committed by managers and employees, we could
indicate that among the factors currently increasing fraud is the weakening of
ethical values, the growing complexity of organizations and their operations, the quality in
the functions of internal auditing, obsolete and inefficient internal controls; this is added to
that companies do not have training programs to prevent fraud, without taking into account
count the consequences that arise from this, such as the losses, the reputation of the
company, the impact on morale and internal relationships.
Fraud prevention is not an easy task, especially the more skilled the
empleado que lo realiza y cuando actúa en colusión con uno o más empleados, habitualmente
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a lot of time usually passes before they are caught; in any case, the deficiencies of the
Internal control systems promote this type of crime.
Therefore, we intend to evaluate and implement effective controls to prevent fraud.
misappropriation of assets.
The tree of fraud
The tree of fraud is the graphic representation of how different types can be classified.
of frauds and their corresponding associated schemes, The Association of Examiners of
Fraud Certificates (ACFE for its acronym in English) created the classification of frauds.
occupational, better known as the "fraud tree" where it is established that there are three
great types of frauds: 'families'
Embezzlement of Assets
2. Corruption or collusion
3. Manipulation of financial statements
Misappropriation of Assets: Includes theft or misuse of company assets.
Corruption or Collusion: It mainly manifests through bribery or conflicts of interest.
and consists of the use of functions or powers for personal, economic, or benefit.
another nature.
Financial Statement Manipulation: It is probably less common than the types of fraud
occupational, but when it occurs, it is the one that can cause the greatest impact. This manifests itself
about overestimating assets or underestimating liabilities.
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BIBLIOGRAPHIES
http://repositorio.uca.edu.ni/1196/1/UCANI3343.pdf
