Topic > The Importance of Classical Fraud Theory - 1309
Due to the person's misinformation an error can occur, as the person unintentionally caused the problem. If the person intentionally provided incorrect information about the event, a fraudulent event could occur (Reid & MacQueen, 2013). Wells (2002) identifies three types of professional fraud that occur in organizations: asset misappropriation, bribery, and fraudulent misrepresentation. Although asset misappropriations commonly occur in organizations, these types of fraudulent activities are classified as the least costly. Meanwhile, fraudulent claims do not occur as much as other types of fraud; however, fraudulent claims are classified as the most
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