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Article: The three Cs of Fraudulent Financial Reporting.
- Article from:
- Internal Auditor
- Article date:
- October 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 Institute of Internal Auditors, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Assessing an organization's conditions, corporate structure, and the choices it makes can help reveal the motivations, opportunities, and rationalizations behind the commission of financial statement fraud.
FRAUDULENT FINANCIAL REPORTING IN THE UNITED States has cost investors more than $100 billion over the past two years. In its "2002 Report to the Nation on Occupational Fraud and Abuse," the Association of Certified Fraud Examiners estimates that about 6 percent of revenues, or $600 billion, will be lost this year as a result of occupational fraud and abuse (see related story, "The High Cost of Occupational Fraud," page 13). This report also indicates that ...