FortheLoveofMoney.ppt.pptVIP

* For the Love of Money Fraud Triangle First Epistle to Timothy in the New Testament (1 Timothy 6:10) starts For the love of money is the root of all evil “In God We Trust” For the Love of Money Fraud Triangle You can be heart broken. You can be broke. But never be heart broken and broke at the same time. What Causes People to Steal: Need can be either real or perceived. An individual might feel the need for a luxury car or vacation home. There might also be more pressing needs, like a house payment or credit card bills. Opportunity arises when someone is given control over funds without proper supervision. This could happen in many ways, such as requiring only a single signature on a check, allowing credit card purchases to be approved by the person who is using the card or not maintaining strict controls over which vendors are used. Fraud/ LoveTriangle Rationalization is another critical aspect of the decision to commit fraud. Most people do not have an innate desire to steal and individuals who do so often convince themselves that circumstances justify the crime. Rationalization may take many forms. In some cases, an individual may justify workplace theft by thinking the money can be paid back later. Often persons committing fraud think they are somehow “owed” the money they take and therefore their crimes are justified. A thief might also rationalize by arguing that the organization is wealthy or wasteful, therefore stolen money won’t be missed. Fraud/ LoveTriangle Realizing that fraud can happen at any level of government, it is important to conduct a risk assessment of your operation to find out where internal controls may be weak. This would include looking at your policies and procedures to determine if internal controls and monitoring procedures are strong enough to deter and detect fraud in its many forms. Even with the best prevention methods, fraud and theft can still occur, which is why detection measures are critical as well. Frau