Final answer:
The claim that corruption was the least common type of occupational fraud in the 2012 Report to the Nations on Occupational Fraud and Abuse is false; actually, financial statement fraud was the least common but costliest when it occurred.
Step-by-step explanation:
The statement claiming that corruption schemes were the least common among the three types of occupational fraud schemes according to the 2012 Report to the Nations on Occupational Fraud and Abuse is inaccurate. In reality, the report categorized occupational fraud into three primary types: asset misappropriation, corruption, and financial statement fraud. Contrary to the statement, corruption schemes were not the least common; rather, financial statement fraud was identified as the least frequently occurring type.
While financial statement fraud occurred less frequently, it was notable for being more financially impactful when it did transpire. Corruption schemes, on the other hand, encompass a diverse range of activities, including bribery, conflicts of interest, and illegal gratuities. These schemes involve an abuse of power or position for personal gain and can manifest in various forms within an organizational context.
The 2012 Report to the Nations highlighted the prevalence of occupational fraud and its potential financial repercussions. While corruption schemes were more common than financial statement fraud, the latter tended to result in more significant financial losses when it did occur. This underscores the importance of organizations implementing robust anti-fraud measures and controls to mitigate the risks associated with various types of occupational fraud, including corruption schemes that may have a detrimental impact on both individuals and businesses.