© D.L. Crumbley
SAS No. 99 Types of Fraud
Unlike errors, fraud is intentional and most often involves deliberate concealment of facts by mgt., employees, or third parties
Fraudulent Financial Reporting: does not follow GAAP (e.g., recording fictitious sales)
Misappropriation of Assets: embezzling receipts, stealing assets, or causing an entity to pay for goods or services that have not been received.
Often accomplished by false or misleading records or documents, possibly created by circumventing internal controls.