Fraud is a fascinating and sometimes entertaining subject. The many stories and personalities, as well as the ingenuity and sometimes lack thereof, of perpetrators and others provide significant diversion to the day-to-day application of auditing principles. This module is an introduction to this topic. Although this topic is occasionally addressed in college courses, it often is addressed only in the context of specific transaction streams, such as revenues and expenses. Here, we will step back and look at fraud from the perspective of an element in the business environment.