Tools Used in Fraud Examinations
Defining Occupational Fraud and Abuse
Research in Occupational Fraud and Abuse
The 2012 Report to the Nations on Occupational Fraud and Abuse
Case Study: Shy Doc Gave Good Face
Skimming Data from the ACFE 2011 Global Fraud Survey
Case Study: Beverage Man Takes the Plunge
Proactive Computer Audit Tests Detecting Skimming
Case Study: Bank Teller Gets Nabbed for Theft
Cash Larceny Data from the ACFE 2011 Global Fraud Survey
Case Study: The Ol' Fake Surprise Audit Gets 'Em Every Time
Proactive Computer Audit Tests for Detecting Cash Larceny
Case Study: Medical School Treats Fraud and Abuse
Billing Scheme Data from the ACFE 2011 Global Fraud Survey
Billing Schemes Involving Nonaccomplice Vendors
Overbilling with a Nonaccomplice Vendor's Invoices
Case Study: Cover Story: Internal Fraud
Preventing and Detecting Fraudulent Invoices from a Nonaccomplice Vendor
Personal Purchases with Company Funds
Personal Purchases through False Invoicing
Personal Purchases on Credit Cards or Other Company Accounts
Preventing and Detecting Personal Purchases on Company Credit Cards and Purchasing Cards
Proactive Computer Audit Tests for Detecting Billing Schemes
Case Study: A Wolf in Sheep's Clothing
Check Tampering Data from the ACFE 2011 Global Fraud Survey
The Fraudster Reconciling the Bank Statement
Case Study: What are Friends For?
Falsifying the Disbursements Journal
Proactive Computer Audit Tests for Detecting Check Tampering Schemes
Payroll Scheme Data from the ACFE 2011 Global Fraud Survey
Case Study: The All-American Girl
Proactive Computer Audit Tests for Detecting Payroll Fraud
CHAPTER 7 EXPENSE REIMBURSEMENT SCHEMES
Case Study: Frequent Flier's Fraud Crashes
Expense Reimbursement Data from the ACFE 2011 Global Fraud Survey
Mischaracterized Expense Reimbursements
Preventing and Detecting Mischaracterized Expense Reimbursements
Overstated Expense Reimbursements
Fictitious Expense Reimbursement Schemes
Multiple Reimbursement Schemes
Case Study: The Extravagant Salesman
Proactive Computer Audit Tests for Detecting Expense Reimbursement Schemes
CHAPTER 8 REGISTER DISBURSEMENT SCHEMES
Case Study: Demotion Sets Fraud in Motion
Register Disbursement Data from the ACFE 2011 Global Fraud Survey
Concealing Register Disbursements
Preventing and Detecting Register Disbursement Schemes
Proactive Computer Audit Tests for Detecting Register Disbursement Schemes
Case Study: Chipping Away at High-Tech Theft
Noncash Misappropriation Data from the ACFE 2011 Global Fraud Survey
Noncash Misappropriation Schemes
Asset Requisitions and Transfers
Purchasing and Receiving Schemes
False Shipments of Inventory and Other Assets
Case Study: Hard Drives and Bad Luck
Concealing Inventory Shrinkage
Fictitious Sales and Accounts Receivable
Write Off Inventory and Other Assets
Preventing and Detecting Thefts of Noncash Tangible Assets That are Concealed by Fraudulent Support
Misappropriation of Intangible Assets
Misappropriation of Information
Misappropriation of Securities
Proactive Computer Audit Tests for Detecting Noncash Misappropriations
Case Study: Why is this Furniture Falling Apart?
Corruption Data from the ACFE 2011 Global Fraud Survey
Case Study: Working Double Duty
Other Conflict of Interest Schemes
Preventing and Detecting Conflicts of Interest
The United Kingdom Bribery Act
Proactive Computer Audit Tests for Detecting Corruption
CHAPTER 11 ACCOUNTING PRINCIPLES AND FRAUD
Who Commits Financial Statement Fraud?
Why Do People Commit Financial Statement Fraud?
How Do People Commit Financial Statement Fraud?
Conceptual Framework for Financial Reporting
Responsibility for Financial Statements
The Sarbanes–Oxley Act of 2002
Public Company Accounting Oversight Board
Certification Obligations for CEOs and CFOs
Standards for Audit Committee Independence
Standards for Auditor Independence
Enhanced Financial Disclosure Requirements
Protections for Corporate Whistleblowers under Sarbanes–Oxley
Enhanced Penalties for White-Collar Crime
Financial Statement Fraud Data from the ACFE 2011 Global Fraud Survey
Types of Financial Statement Fraud Schemes
CHAPTER 12 FINANCIAL STATEMENT FRAUD SCHEMES
Case Study: That Way Lies Madness
Defining Financial Statement Fraud
Costs of Financial Statement Fraud
Red Flags Associated with Fictitious Revenues
Matching Revenues with Expenses
Recording Expenses in the Wrong Period
Red Flags Associated with Timing Differences
Case Study: The Importance of Timing
Concealed Liabilities and Expenses
Expensing Capital Expenditures
Returns and Allowances and Warranties
Red Flags Associated with Concealed Liabilities and Expenses
Red Flags Associated with Improper Disclosures
Red Flags Associated with Improper Asset Valuation
Detection of Fraudulent Financial Statement Schemes
AU 240—Consideration of Fraud in a Financial Statement Audit
Deterrence of Financial Statement Fraud
Reduce Pressures to Commit Financial Statement Fraud
Reduce the Opportunity to Commit Financial Statement Fraud
Reduce Rationalization of Financial Statement Fraud
Case Study: All on the Surface
CHAPTER 13 EXTERNAL FRAUD SCHEMES
Case Study: A Computer Hacker Turned Informant . . . Turned Hacker
How Prevalent Is Vendor Fraud?
Preventing and Detecting Vendor Fraud
Threats from Unrelated Third Parties
Why Do Companies Resort to Corporate Espionage?
Favorite Targets of Corporate Espionage
Preventing and Detecting Corporate Espionage
CHAPTER 14 FRAUD RISK ASSESSMENT
Why Should an Organization Be Concerned about Fraud Risk?
Factors That Influence Fraud Risk
What is a Fraud Risk Assessment?
What Is the Objective of a Fraud Risk Assessment?
Why Should Organizations Conduct Fraud Risk Assessments?
Improve Communication and Awareness about Fraud
Identify What Activities Are the Most Vulnerable to Fraud
Know Who Puts the Organization at the Greatest Risk
Develop Plans to Mitigate Fraud Risk
Develop Techniques to Determine Whether Fraud Has Occurred in High-Risk Areas
Comply with Regulations and Professional Standards
What Makes a Good Fraud Risk Assessment?
Collaborative Effort of Management and Auditors
Independence and Objectivity of the People Leading and Conducting the Work
A Good Working Knowledge of the Business
Access to People at All Levels of the Organization
The Ability to Think the Unthinkable
A Plan to Keep It Alive and Relevant
Considerations for Developing an Effective Fraud Risk Assessment
Preparing the Company for the Fraud Risk Assessment
Assembling the Right Team to Lead and Conduct the Fraud Risk Assessment
Determining the Best Techniques to Use in Conducting the Fraud Risk Assessment
Obtaining the Sponsor's Agreement on the Work to Be Performed
Educating the Organization and Openly Promoting the Process
Executing the Fraud Risk Assessment
Identifying Potential Inherent Fraud Risks
Assessing the Likelihood of Occurrence of the Identified Fraud Risks
Assessing the Significance to the Organization of the Fraud Risks
Identifying and Mapping Existing Preventive and Detective Controls to the Relevant Fraud Risks
Evaluating Whether the Identified Controls Are Operating Effectively and Efficiently
Identifying and Evaluating Residual Fraud Risks Resulting from Ineffective or Nonexistent Controls
Addressing the Identified Fraud Risks
Establishing an Acceptable Level of Risk
Ranking and Prioritizing Risks
Responding to Residual Fraud Risks
Reporting the Results of the Fraud Risk Assessment
Considerations When Reporting the Assessment Results
Making an Impact with the Fraud Risk Assessment
Beginning a Dialogue across the Company
Looking for Fraud in High-Risk Areas
Holding Responsible Parties Accountable for Progress
Keeping the Assessment Alive and Relevant
The Fraud Risk Assessment and the Audit Process
CHAPTER 15 CONDUCTING INVESTIGATIONS AND WRITING REPORTS
When is an Investigation Necessary?
Selecting the Investigation Team
Preserving Documentary Evidence
Organizing Documentary Evidence
Using Computer Software to Organize Documents and Other Data
Opinions or Conclusions in Report
CHAPTER 16 INTERVIEWING WITNESSES
General Rules for the Introductory Phase of the Interview
Typical Attitudes Displayed by Respondents
Steps in the Admission-Seeking Interview
CHAPTER 17 OCCUPATIONAL FRAUD AND ABUSE: THE BIG PICTURE
Measuring the Level of Occupational Fraud and Abuse
Understanding Fraud Deterrence
The Corporate Sentencing Guidelines
Definition of Corporate Sentencing
Vicarious or Imputed Liability
APPENDIX A ONLINE SOURCES OF INFORMATION
APPENDIX B SAMPLE CODE OF BUSINESS ETHICS AND CONDUCT