Intentional misstatement of financial reporting and research data.
Examples of fraud include:
- Adjusting balances to meet budgeted amounts, misclassifying transactions, recording transactions in the wrong period, fabrication of financial or research data, withholding information, and false documentation.
Prevent
- Set an appropriate tone at the top. Management should lead by ethical example.
- Train employees through orientation and refresh at regular intervals. Ensure adequate communication so that every employee is aware of what activities constitute fraud, and what the consequences are.
Detect
- Perform General Ledger verification.
- Review transactions to look for unusual amounts, patterns, or fluctuations in financial records.
- Inquire with individuals involved in the financial reporting process about inappropriate or unusual activity relating to the processing of journal entries and other adjustments.
- Review accounting estimates for biases that could result in material misstatement due to fraud.
Inform
If you suspect Financial Statement fraud,
- Tell your direct supervisor, unless you suspect they are involved
- Contact Audit & Advisory Services at [email protected]
- Contact the UC Whistleblower Hotline or call 1-800-403-4744 to report anonymously