This guide identifies various types of fraud committed by insiders and outsiders, common frauds, and the procedures used by top management to deter fraud.
Common types of insider fraud against the company include: cash diversions, conversions, and thefts (front-end frauds); check raising and signature or endorsement forgeries; receivables manipulation, such as lapping and false credit memos; payables manipulation and allowing vendors, suppliers and contractors to overcharge; and payroll manipulations, such as adding nonexistent employees or altering time cards.