Fraud

Question 0

Name values of a business community

Answer 0

Honesty (honey)
Trustworthyness (trust)
Fairness (farah)
Dicipline (Dont)
Integrity (interfere)

Question 1

Explain ethics

Answer 1

Ethics refers to a set of moral principals or values that are embraced by certain community. Written and unwritten laws, they direct the business to encourage public confidence

Question 2

What is the purpose of ethics?

Answer 2

To direct businessmen to abide by a code of conduct that facilitates Nd encourage public confidence in their products and services

Code of ethics is a crucial element in the forming of a professional person

It supports the decision making process in situations that invole ethical questions

Question 3

When social values deteriorate..

Answer 3

It becomes increasingly difficult to maintain high ethical standards in accounting and business

Question 4

Fraud is at present one of the major causes of

Answer 4

Business failure

Question 5

Name and explain four elements of fraud

Answer 5

• unlawfullness: wrong action in the eyes of law and society
• misrepresentation: a false statement made by one person to another failure to disclose certain info when its necessary.
• intend: The person making the misrepresentation must have intent or foreseen that the victim would be deceived
• prejudice: the victimes would have suffered prejudice by reason of attending their position

Question 6

Fraud is a… Crime

Answer 6

Punishable

Question 7

Name the areas where fraud can occur in a business

Answer 7

Asset misappropriation: assets can be stolen & misuse of fixed assets

Cheque fraud

Computer crime

Question 8

Fraud can be combated by means of the following

Answer 8

Good staff development programmes

Regular stocktaking

Internal and external audit

Anti-corruption laws

Appropriate reaction planning

Question 9

Describe the four-step approach to fraud prevention

Answer 9

Step1: Screen out fraudsters before hiring them
Step2: reduce opportunities for fraud
Step3: Create an “anti-fraud” environment
Step4: Prosecute all fraudsters

Question 10

What is financial risk management?

Answer 10

A business needs clear objectives, however with human beings around there will be unwanted activities e.g. Theft. Its important to know, anticipate and keep risks minimum

Question 11

List the guidelines in how to manage financial risks:

Answer 11

Asses and analyse the system in use. Determine what might be wrong. Asses the recording of new assets bought.

Minimise the risks by:
Define the risks

Be pro-active (beat them by their own game)

Design systems

All employees must understand and comply. Managers as well

Rules & procedures must be transparent & objectives