Abstract:
The discussion of fraud is limited to management type frauds committed for or against a company. Management frauds are perpetrated by those who are in an upper-level or supervisory position and consist of willful misrepresentation of financial information. The paper proceeds with suggested approaches used by accountants to discover potential fraudulent situations. A motivational study conducted by Michigan CPAs is included in the discussion of fraud criminals. Another study by two criminologists has been included as a source of characteristics of possible fraud perpetrators and compares them to normal individuals and property offenders. Another motivational study by Michigan CPAs is presented in the discussion of fraud criminals. Finally, a list of different types of management fraud is examined along with ways to prevent and detect their occurrence.
