Fraud and it's prevention
In this lesson, you'll learn how fraud happens, why people commit it, and how to spot and prevent it in your organisation.
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In this lesson
- 0:00 Fraud and prevention overview
- 0:27 Prerequisites to fraud explained
- 1:41 Types of fraud across organisations
- 2:10 Misappropriation and asset abuse schemes
- 2:39 Bookkeeping fraud in detail
- 4:26 Financial reporting fraud methods
- 6:49 Third party fraud tactics
- 7:51 Organisational impact of fraud
- 8:59 Manager's role in prevention
- 11:03 Exam question on fraud prerequisites
- 12:13 Bad debt policy manipulation case
- 14:09 Money laundering process defined
- 16:10 Money laundering offences and penalties
- 18:30 Preventing and detecting money laundering
- 19:58 Exam question on tipping off offence
About this lesson
You'll explore the different types of fraud—from asset misappropriation and payroll schemes to financial reporting manipulation like those seen in major cases such as Enron—and understand the real consequences for businesses, staff, and reputation. You'll also discover your role as a manager in creating a fraud-aware culture, setting up effective controls, and knowing when to escalate concerns. This lesson covers the three prerequisites to fraud (dishonesty, opportunity, and motivation), common fraud schemes across sales, purchases, and financial reporting, and practical detection methods. You'll examine how fraudsters manipulate invoices, hide transactions, and distort financial statements, then learn how boards, audit committees, and managers work together to prevent and detect these risks. The lesson includes worked examples and exam-style questions to help you apply these concepts. The second half focuses on money laundering—what it is, how it works through placement, layering, and integration, and the specific offences you need to know for your exam. You'll learn about failure to report, tipping off, and the regulated sectors where these obligations apply. The lesson finishes with practical prevention measures: customer due diligence, identity verification, appointing money laundering reporting officers, and staff training. This content is essential for the Business and Technology paper and reflects real-world scenarios you'll encounter in professional practice.
Duration: 22m
Transcript
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