Saturday, 30 April 2016

Fraud Tree

Fraud has been classified in two broad categories: a) Internal Fraud and b) External Fraud.

Internal Frauds, are generally committed by an employee / executive / manager in an organisation to benefit himself at cost of organisation. This Internal Fraud can also be said as an Occupational Fraud.
Occupational Fraud if further classified in three categories:
i) Corruption
ii) Asset Misappropriation
iii) Financial Statement Fraud

These three classifications along with its sub categories is termed as Fraud Tree.

I would explain each category in details in subsequent blog.

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