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Stajano and Wilson Distilled Seven Recurring Behavioural Patterns and Related

question 5

Essay

Stajano and Wilson distilled seven recurring behavioural patterns and related principles that are useful in the examination of fraud.Name and briefly describe these principles.


Definitions:

Principal Amount

The initial size of a loan or bond or the amount of money invested, excluding any interest or profits.

Extended Period

A term used to denote a longer than usual time frame in various contexts, such as payment terms, investment durations, or accounting cycles.

Long-term Note

A debt security that requires repayment of the principal, along with interest, over a period longer than one year, typically used for significant capital expenditures or investments.

Discount On Notes Payable

The difference between the face value of a note and what is actually paid, which occurs when the note is issued for less than its nominal value.

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