Corporate Fraud and Internal Control Workbook: A Framework for Prevention

Chapter Eleven

Legal Issues Surrounding Fraud

FRAUD MAY BE DEFINED AS THE INTENTIONAL USE OF DECEPTION, trickery, or other dishonest means to deprive others of their assets or of a legal right. A victim to fraud is entitled seek redress at law for damages against the party acting fraudulently.

QUESTIONS: FILL IN THE BLANKS

Refer to Chapter 11 in Corporate Fraud and Internal Control: A Framework for Prevention.

1. Common law traces its roots to the ancient laws of England under which the courts would rule based on ___________ and the ___________ inherent in the particular society.

2. ___________ is the basis under which case law, which derives from ___________ rather than legislation, operates and predominates in the United Kingdom, the United States, and other countries previously colonized by the United Kingdom.

3. Disputes under common law are settled using an ___________ of evidence and arguments before a neutral arbitrator, judge, or jury.

4. Under civil law, which dates back to the days of the Romans, ___________ is seen as the primary source of law, and court systems may act as ___________ with precedents overturned based on the court's interpretation of the law.

5. The legal foundations of many countries are embedded in their ___________ , which set out the general frameworks of government.

6. When a case is prosecuted in court, judgment is normally made based on the ___________ ...