Occupational Fraud: Conflict of Interest vs. Bribery

Discussion Questions
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Discussion Questions
1. How does conflict of interest differ from bribery?
Conflict of interest is related or similar in some ways to bribery, although the two issues differ in several aspects. Conflict of interest involves compromising the duties and responsibilities usually described in a job position as job holder pursues personal interests (G. Hill & K. Hill, 2005). For instance, a person holding a public office is expected to carry out tasks to the interest of the people. When he or she decides to do personal activities during office hours or using the powers of the office or even uses resources in private activities he or she shows a conflict of interest. One party gains at the expense of the other is the case of conflict of interest. Bribery on the other hand, involves giving or receiving something of value so as to influence decisions of a person normally an official or show favor. An example is accepting illegal money so as to award a contract. Both parties involved in bribery benefit. Conflict of interest can lead to bribery and giving bribes can make one express conflict of interest in his or her power position.
2. What is meant by the term turnaround sale?
The term turnaround sale is used to refer to the amount of sales necessary for a company to make increased revenues so as to overcome difficulties or constrained financial conditions (Investopedia, 2014). A firm may be in hard financial situations such as inability to pay creditors, undertake layoffs, difficulties to pay salaries of workers and even resort to salary cuts, decreasing value in the stock markets and management of other costs. This would be mainly as a result of lower sales that are the main sources of a firm's revenues. Low sales generate little revenues that could not cover all expenses as well as costs and bring profits to the company. Firms that realize low sale over an extended period of time would make losses and hence financial difficulties that affect growth and the value of capital and assets. This would be overturned if the firm makes high sales and obtain revenues capable of paying for expenses and costs, and the level of sales would be referred to as turnabout sale.
3. What tools are used in fraud examination and how are these tools used?
There are some accounting tools for use in examining fraud that may not be easily identified due to lack of evidence. This is usually the role of forensic accounting and specialists in this filed use the tools to reveal fraud cases in companies or government offices (ACFE, 2014). Tools include the fraud risk assessment which is used to identify and assess vulnerabilities of clients as well as employers to internal fraud. Another one is ...