Corporate Fraud

Illegal or unethical acts committed by a company or its employees to gain an

unfair advantage.

by YOKESH RAM S
Types of Corporate Fraud
1 Financial Statement 2 Asset
Fraud Misappropriation
Misrepresenting financial Theft or misuse of company
information to deceive assets for personal gain.
investors.

3 Corruption 4 Insider Trading

Bribery, extortion, or Using non-public information
embezzlement for personal to profit from stock trading.
advantage.
Causes of Corporate Fraud
Pressure Opportunity Rationalization

Financial pressure or personal gain. Weak internal controls or lack of Justifying actions as acceptable or
oversight. necessary.
Consequences of Corporate
Fraud
Legal Penalties
Fines, imprisonment, and reputational damage.

Financial Losses
Loss of shareholder value and investor confidence.

Business Failure
Bankruptcy or forced closure of operations.
Detecting Corporate Fraud
Financial statement analysis Internal audits

Whistleblower reports Data analytics

Tip lines Forensic accounting

Preventing Corporate Fraud

1 Strong Internal Controls

Clear policies, procedures, and oversight.

2 Ethical Culture
Promote integrity and accountability.

3 Employee Training
Educate on fraud risks and reporting procedures.
Investigating Corporate Fraud
Forensic Accounting Interviews
Analyzing financial records for discrepancies. Gathering information from employees and witnesses.

Document Review Data Analysis

Examining relevant documents and emails. Identifying patterns and anomalies in data.
Reporting Corporate Fraud

Internal Reporting External Reporting Whistleblowing

Reporting to internal audit or compliance Reporting to law enforcement or Disclosing fraud to authorities
department. regulatory bodies. anonymously.