Principles of Forensic Accounting, Chapter 1: "Core Foundation Related to Forensic Accounting and Fraud Examination" flash cards

Fraud

(M-1) An intentional deception, whether by omission or co-mission, that causes a victim to suffer an economic loss and/or the perpetrator to realize a gain.

Conversion

(M-1) An unauthorized assumption and exercise to the right of ownership over goods and personal chattels belonging to another, to the alteration of their condition or the exclusion of the owner’s rights.

Embezzlement

(M-1) A willful theft or conversion of another’s money or property of which the wrongdoer acquired possession lawfully, by reason of some office, employment, or position of trust.

Fiduciary

(M-1) A person holding a character analogous to a trustee, in respect to the trust and confidence involved in it and the scrupulous good faith and candor which it requires.

Fiduciary Capacity

(M-1) An instance when a professional acts in a manner where the business where they transacts is not for their benefit, but for another person, as to whom they stand in a relation implying and necessitating great confidence and trust on the one part and a high degree of good faith on the other part.

Asset Misappropriation

(M-1) The theft or misuse of an organization’s assets.

Corruption

(M-1) The unlawful or wrongful misuse of influence in a business transaction to procure personal benefit.

Financial Statement Fraud

(M-1) The intentional misrepresentation of financial or nonfinancial information to mislead others who are relying on it to make economic decisions.

Forensic Accounting

(M-2) The application of financial principles and theories to facts or hypotheses at issue in a legal dispute.