ABSTRACT
Managers must sometimes make critical ethical and legal decisions about what constitutes fraud. Fraud is an intentional misrepresentation of a material fact, designed to induce the person or company receiving the miscommunication to rely upon it to their detriment. Fraud can be a benefit for an individual or a company. An act of fraud involves the following steps: An individual or business must intentionally make a false statement about an important piece of information. The victim must believe and act upon this false information, suffering the loss of money or property as a result.
