Discuss the reasons why each group may be motivated to commit fraud.

Assignment: Analyzing Causes of Financial Statement Fraud at Diamond Foods

Even though misappropriation of assets fraud schemes are much more common, financial statement fraud causes huge losses for the victims: investors, employees, and even the financial markets. It is crucial for fraud examiners and forensic accountants to understand the reasons that financial statement fraud is committed. Additionally, this type of fraud is not easily observed, so auditors must be able to recognize the existence of red flags that may indicate fraud.

Read the Diamond Foods case study located in your Syllabus.

Prepare a 2–3 page paper in APA format and checklist items.

Checklist:

  1. Generally, what are the three groups of people who commit financial statement fraud?
  2. Discuss the reasons why each group may be motivated to commit fraud
  3. Next, discuss the three general ways that financial statement fraud is committed
  4. Use the information you have collected in requirements 1 through 3 to analyze the Diamond Foods case study and determine the causes of the financial statement fraud that occurred at this company

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