In: Accounting
The four elements of fraud ranking in the order from the most important to least important (in my opinion) is stated below along with the rationale behind it.
Rationale behind the above order is the chronological order of events and the level of intent involved.
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The main factor of difference between Fraud and Abuse is the intent and knowledge. Fraud is intentional misrepresentation for gaining personal (financial) benefits. Whereas, abuse is practices often carried out unknowingly due to bad business procedures resulting in extra costs.
In a major corporation, fraud is more likely to take place (mostly in senior management) as there is little checking mechanism in place.
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