Blog 4
The chairman of ASIC labelled Australia paradise for white
collar criminals. White collar crimes include the broad term of fraud which
includes credit card, bankruptcy, insurance frauds, insider trading, bribery,
money laundering, embezzlement and cartel conduct.
“Criminal Minds” from the Journal of Accountancy discusses
how CPAs can learn from the way thieves think. Six fraudsters opened up how
they concealed the fraud and how CPA can both prevent and uncover such shrewd
schemes.
I believe knowing the methods of white collar criminal
activity will be helpful in preventing and detecting such crimes. Having worked
in retail, you hear stories of managers shifting sales to prior period to meet
performance indicators and get bonuses. If an accountant is aware of the this
type of fraud, he/ she would check cut-off dates etc to detect this type of
crime happening. Whether it is new tech savvy type of fraud or an old school
method, getting into the head of a criminal can make it easier not only in
detection but prevention. It may not always be that the fraud that can be
detected through transactions, it could be criminal activities such as insider
trading. This type of crime involves collusion and often detected by instinct.
Therefore, it could be advantages to understand the types of white collar
crimes.
Appendix
Thanks for the great information you share on this post.
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