Fraud Investigation

by Internal Audit
 What is Fraud, Anyway?
The Fraud Tree

Asset Financial
Corruption
Misappropriation Statement Fraud

Fraud is any activity that relies on deception in order to achieve a gain.

Fraud becomes a crime when it is a “knowing misrepresentation of the truth or
concealment of a material fact to induce another to act to his or her detriment”
(Black’s Law Dictionary). In other words, if you lie in order to deprive a person or
organization of their money or property, you’re committing fraud. 

Fraud investigations can be done by either a specialized Fraud Investigator,

Ethics and Compliance, or Internal Audit. The objective is to investigate
allegations of fraud and prove that any override / non-compliance to internal
controls is intentional, for management to decide whether to pursue criminal
prosecution / civil litigation.
 The Fraud Triangle
Everyone wants to become a
Crazy Rich Asian!

My salary is too low.

I have worked for the company 20 years.
I deserve it.

Poor Internal Controls

Real-Life Case Study
Why Should I Care About Fraud?

 Prices of goods and services increase

 Taxpayer money is used for investigations

(GST, property tax increase)

 Fraud can even cost lives

(e.g. suicide after being scammed)
What Can We Do to Prevent Fraud?
Summary
We all have a part to play in improving
internal controls.

Whether you’re in Finance, Operations, or

Audit, you can play a part by being alert and
promoting a Speak Up Culture!