Contrast management fraud with employee fraud
Employee fraud is usually designed to directly convert cash or other assets to the employee's personal benefit.
Management fraud involves less of a direct benefit to the perpetrator. Management fraud may involve an attempt to misstate financial performance in order to gain additional compensation or to earn a promotion. Management fraud may also involve an attempt to misstate financial performance in order to increase the price of the company's stock or to reduce the cost of debt. Management fraud is more insidious than employee fraud because it often escapes detection until the organization has suffered irreparable damage or loss. Management fraud usually does not involve the direct theft of assets.
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Gross earnings and net pay are the same amounts
Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. The first step in a personal financial planning process is to inventory your current situation. 2. The personal financial planning process is very similar to the problem-solving and decision-making process. 3. An individual’s net worth is the sum of all their assets. 4. A cash flow statement is similar to the accounting balance sheet. 5. The typical American generally saves less than individuals in other developed countries.
A lockbox is a postal address maintained by a third party-typically a bank-which is used solely for the purpose of collecting checks.
Answer the following statement true (T) or false (F)
A Heights Inc. bonds have a coupon rate of 7%, a yield to maturity of 10%, a face value of $1,000,
and mature in 10 years. Which of the following statements is MOST correct? A) An investor who purchases the bond today will earn a return of 10% if he sells the bond after one year. B) An investor who purchases the bond today will earn a return of 10% per year if he holds the bond until it matures. C) An investor who purchases the bond today will earn a return of 7% if he sells the bond after one year. D) An investor who purchases the bond today will earn a return of 17% per year if he holds the bond until it matures.