| Summary: | 碩士 === 靜宜大學 === 管理碩士在職專班 === 97 === There have been recorded fraud cases, big or small, through human history, and they could be traced over and over. Accompanied with the development of global economy, and the forming of multi-national corporations, frauds has advanced in every possible ways, therefore, fraud victims have become more extensive. Therefore we should take more actions to prevent them before it is way out of control.
There are different theories about the causes of frauds, such as GONE theory, Change Management Iceberg theory, Fraud Triangle theory, etc. This paper points to three factors which extracted from Fraud Triangle theory: 1, Incentives or pressure 2, Opportunities 3, Attitudes or Rationalization of Behaviors, as the general belief of fraud formation in the practical world. Methods of fraud preventions could be divided between theoretical and practical worlds. Yet, under the structures of The Committee of Sponsoring Organization, Fraud prevention plans are thoroughly detailed and have utmost value of references. Among the plans, Internal Control System is the most important core. How to evaluate the health or weakness of enterprises’ internal control system and their signs of possible forming of frauds will be the key factors of auditing finance reports in the future.
Forensic Accounting is time –honored overseas, but it is still in the initial stage in Taiwan. As the domestic fraud reports have become prevalent, it is of urgent for us to use Forensic Accounting system. This system could fill the needs of CPA, the managements, the Civil Service, and litigation cases. This paper tries to discuss the definitions and scopes of Forensic Accounting through its developments overseas. Our findings of traditional Forensic Accounting include: litigation support and investigative accounting, while the developing Forensic Accounting include: crime investigation, commerce investigation and the expert witnesses, etc. As Forensic Accounting and auditing related to accounting theory, this paper also make distinctions among methods, evidences, responsibilities, and techniques, so the concepts could be more clear.
Finally, this paper focuses on two fraud cases. From China Rebar case study, in order to increase profit, the manager makes false transaction between subsidiary company. It proves that the regulation is invalid when the manager is morally degenerate. From Lee and Li Attorneys case study, it proves that the imperfect internal control system, opportunity and pressure will make fraud event occurred easier.
Forensic Accounting is different from general finance auditing. Aside from assisting fraud cases investigation, so to make clear the cases, it also helps judge with clear pictures so to make the right decisions with legal cases. This paper strongly holds the ideas of “importing” Forensic Accounting system and its related regulations. Personnel training should also take place at the same time. In doing so, we could help deal with our nation’s fraud cases and related problems of business management, and then to lower the rates of fraud cases.
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