Occupational Fraud

Occupational Fraud

Occupational Fraud/Employee Embezzlement

Occupational fraud has become very common. It can be defined as a fraud that is committed by the employees within the organization. This is an internal practice that is done by the employees and a number of reasons cause this practice. Companies should be able to know as to what practices are committed by the employees in order to make sure that such fraudulent practices are avoided. In addition to this, companies should implement preventive measures that will prove to be helpful for the company and will also assure that the company's money and funds are safe (www.peoriamagazines.com).

How Occupational Fraud/Employee Embezzlement happens

There are various ways with which employees can commit occupational fraud. With the increased and huge number of the types of occupational fraud, it is seen that the attitude of the employees has also changed over time. Every person loves to make money and the ones who are in dire need of it look for ways even if they illegal or immoral. All they need is money at the moment and they would accept to get it in any way they can (www.journalofaccountancy.com). This changed the manner in which people worked and how they committed fraud. According to the statistics the number of occupational frauds has increased and it has been seen that the employees are working in an unethical manner.

Different ways are adopted for committing occupational fraud depending on the type of occupational fraud that is being committed. If asset misappropriation is being committed, cash is being stolen or misused. Same is the case with corruption i.e. cash is being accepted for performing an illegal activity. False financial statements are prepared to present inaccurate information about the financial position of the company.

Types of Occupational Fraud/Employee Embezzlement

There are a number of ways with the help ...