Fraud refers to unlawful pursuit of inappropriate endeavours in order to derive undue satisfaction and benefits. Fraudsters often engage in activities that contravene legal, moral, and ethical standards of behaviour in social and organizational contexts. In organizational contexts, fraud entails such irregularities as falsification of financial statements, misrepresentation of information, illegal acquisition of property, participation in irregular deals within organizations, and concealment of crucial leads that could pre-empt or forestall a criminal undertaking within an organizational entity. Fraud is a recurrent reality in most organizations because of its broad and complex nature. Some instances of fraud are usually easy to detect because they manifest in a straightforward manner. For instance, it is easy to detect theft of physical items within an organization. However, other forms of fraud are not easily noticed. For instance, financial fraud is usually complex and often requires expert intervention in order to understand facts in regard to its nature and essence. This research undertaking seeks to discuss a case involving fraud within an organization.
It will look at all the stages involved in actualizing such criminal undertakings. This essay will look at such stages as contemplation, planning, and execution of fraud within an organization. It will discuss various engagements that seek to conceal existence of such a fraud. Specifically, the fraud involving theft of cash at a pharmaceutical company will be analyzed. The case will involve individuals who handle cash transactions within the company. Such individuals cooperate to ensure that the fraud scheme materializes according to their plan. Adherence to plan will be integral to successful implementation of the scheme. It will be important to ensure that the fraud scheme does not fall prey to safety and control measures that could jeopardize its actualization. However, my scheme shall succeed because such controls are dysfunctional. They lack capacity to forestall occurrence of fraud within the company. This discrepancy accords me an opportunity to execute my plan because organizational safety and controls do not suffice with regard to deterrence of fraud within the company. Such realities support efforts with regard to planning, actualization, and execution of my scheme.
Discussion
As earlier mentioned, this essay will discuss an occurrence relating to a fraud I could commit. Committing fraud is complex and usually requires prior planning to ensure everything works towards achieving basic expectations of all parties involved. When you devoid of proper planning, it is difficult for fraudsters to achieve their objectives. In order to achieve my goal, I will involve professionals and experts who have proper knowledge on matters that relate to financial auditing and risk management. Such experts shall be instrumental in my plan because they will help in identification of loopholes that could jeopardize fraud. I will work closely with accountants, auditors, and risk managers to ensure they provide advice on technicalities that suffice in such fraud undertakings. To reduce possibility of detection, my focus shall be on falsification of financial books and statements. In fact, it will be difficult for me to achieve this in absence of support and cooperation from experts such as auditors, risk managers, and accountants. Participation of experts in the fraud scheme shall give me an opportunity to ensure the plan fulfils all prerequisites with regard to creation, planning, and execution. Most fraud schemes fail due to poor planning and execution. Therefore, it will be inappropriate for me to undertake such a grand scheme without prior knowledge of critical areas and aspects that characterize such undertakings.
The main aim of committing fraud is pursuit of undue financial benefits. My fraud scheme will have similar motivation and scope. The fraud scheme will target the finance department because it is starting point to all the related transactions and operations. In all the financial schemes, there is high likelihood of detection and subsequent arrest. To avoid such occurrences, I will consult financial auditors to ensure that they assist in falsification and rationalization of all the books of accounts. Books of accounts should reflect accurate financial reports to avoid any form of speculation. The planning stage also involves identification of possible areas that could expose the scheme to jeopardy. I will plan the fraud in a manner that will not raise suspicion or leave any trail of evidence. Concealing evidence is difficult because there is always likelihood of unforeseen circumstances. However, it will be wise to avoid such occurrences. Planning also involves exit strategies in case authorities discover the fraud plans. There will be elaborate contingency planning that will suffice in such situations.
After planning, the next stage will feature execution of the fraud. Execution will include actions that lead to plan fullfillment regarding the fraud. To guarantee proper execution of the fraud scheme, I will oversee and coordinate all the operations. Coordination is important because it facilitates adherence to the plan of action. Committing a fraud requires discipline, accuracy, and dedication. Therefore, I will ascertain that all the aspects of the plan conform to ideals of accuracy and precision. To achieve my goal, I will oversee falsification of crucial documents in order to give inaccurate information. This will offer an opportunity for execution of my fraud scheme without raising suspicion. The fraud will be based on subtle undertakings and deals that will not be obvious to people within the organization. Anonymity is an important aspect during planning and actualization of fraud schemes. Detection and subsequent arrest are nightmares for planners of all the forms of fraud schemes because it heralds negative implications. Fraud schemes revolve around activities that seek to guarantee anonymity and subtle disposition. I will ensure that my scheme does not fail to achieve its core objectives. This undertaking will suffice through proper planning and execution of the scheme.
Due to the elaborate nature of my scheme, it will be difficult for authorities to detect its planning and execution. However, there is need for organizational structures and frameworks to forestall execution of the fraud scheme. My scheme will involve professionals in different areas of engagement within the organization. This reality demonstrates the essence of professional misconduct and dishonesty. There is need for professionals to maintain ethical conduct in order to avoid involvement in such inappropriate schemes. For instance, it is unethical for auditors and accountants to engage in fraud schemes that undermine quality of service to the organization. Professional ethics play an important role in ensuring that individuals behave in ways that promote basic aims and objectives with regard to their professions. If all the professionals involved in my scheme uphold ethical conduct and orientation, it will be difficult for them to aid wrongdoing. Their involvement disparages their integrity and willingness to uphold professional ethics and morality. Therefore, upholding professional ethics and conduct is a proper way of forestalling execution of my fraud scheme.
To address my fraud scheme, it will be important to initiate investigations with regard to all the aspects of its planning and execution. It will expose its planners and accomplices, which will serve as an avenue for organizational reform and restructuring in order to improve employee’s effectiveness. Most cases of organizational fraud involve disatisfied employees who feel left out with regard to decision making within organizations. Involvement of employees in all the aspects of decision-making is an important element for avoidance of fraud and other forms of illegal activities within organizations. Whenever organizations fail to incorporate employees in decision-making, it risks losing their trust and willingness to engage in moral deeds. Disatisfied employees engage in fraud as justification for their inability to participate in crucial endeavours with regard to management of their organization. Therefore, organizational leaders should strive to identify areas that deserve and warrant employee participation and involvement.
Surveillance plays an important role in detecting and forestalling fraud schemes within organizations. Surveillance undertakings ensure that authorities detect and thwart any instances of fraud. It also accords them an opportunity to identify potential departments and divisions that are susceptible to fraud. Through surveillance, organizations pre-empt fraud schemes that could otherwise hurt the organization in terms of operations and profitability. Surveillance ensures that organizations have structures and frameworks that protect them from negative effects occasioned by fraud schemes. Therefore, surveillance will play an important role in combating my fraud scheme because it will make it easy for organizational leaders to detect its existence.
Conclusion
The rationale of my fraud scheme is fulfilment of basic course requirements as articulated by my professor. Otherwise, society should discourage all the forms of fraud and misappropriation in organizations. Fraud affects operations in organizations because it undermines efforts that seek to increase efficiency and practicality in such entities. In fact, organizations should invest in fraud deterrence in order to reduce instances of its occurrence and execution.