Fraud 101 (eBook)

Techniques and Strategies for Understanding Fraud

Stephen Pedneault (Autor)

eBook Download: EPUB

2010 | 3. Auflage
Wiley (Verlag)
978-0-470-64784-4 (ISBN)

Infos

A straightforward guide explaining the nature of financial fraud

Fraud continues to be one of the fastest growing and most costly crimes in the United States and around the world. The more an organization can learn about fraud in general and the potential fraud risks that threaten the financial stability of the organization's cash flow, the better that organization will be equipped to design and implement measures to prevent schemes from occurring in the first place.

Fraud 101, Third Edition serves as an enlightening tool for you, whether you are a business owner or manager, an accountant, auditor or college student who needs to learn about the nature of fraud. In this invaluable guide, you will discover and better understand the inner workings of numerous financial schemes and internal controls to increase your awareness and possibly prevent fraud from destroying your organization's financial stability.

It offers guidance, understanding, and new, real-world case studies on the major types of fraud, including

• An understanding of why fraud is committed
• An overview of financial fraud schemes
• White-collar crime
• Uncovering employee embezzlements
• Establishing internal fraud controls
• The nature of collecting evidence

With case studies included throughout the book to gain insight to the real world of fraud, Fraud 101, Third Edition describes the features of fraud and then provides proven methods of prevention, as well as solutions to expose different types of fraud.

Stephen Pedneault, CPA, CFF, CFE, is the founder and Principal of Forensic Accounting Services LLC, a CPA firm located in Glastonbury, Connecticut, specializing in forensic accounting, employee fraud, and litigation support matters. Steve is also the author of the forthcoming Wiley title, Anatomy of a Fraud Investigation. He has written numerous articles appearing in local and national media and is a contributor to Fraud Casebook: Lessons from the Bad Side of Business (Wiley). For more information about Stephen Pedneault, go to www.forensicaccountingservices.com.

Inhalt

Preface ix

Acknowledgments xv

Introduction xvii

Chapter 1 The World of Fraud 1

Definition of Fraud 1

The Many Types of Fraud 2

Chapter 2 Why Is Fraud Committed? 19

A Rationalizing Society 20

Financial Statement Fraud 22

Financial Fraud Comes in Different Shapes and Sizes 23

Motivators Differ by Type of Business 25

Employee Schemes 27

In the End 32

Chapter 3 Financial Statement Fraud Schemes 33

Where Do Things Go Wrong? 34

Trend Analysis 42

Beyond Traditional Audits 45

Chapter 4 Employee Embezzlements 51

The Fraud Triangle 55

Areas for Concern 57

Chapter 5 Other Fraud Schemes 69

Duplicate Payment Fraud 71

Multiple Payee Fraud 72

Shell Fraud 73

Defective Delivery Fraud 77

Defective Receipt Fraud 88

Defective Shipment Fraud 89

Defective Pricing Fraud 91

Chapter 6 Contract Rigging Schemes 97

Stage One: Obtaining the Contract 97

Stage Two: Contract Change Orders 102

Unbalanced Bidding 114

Detection Recommendations 118

Rotation Fraud 119

Where Do We Go from Here? 121

Chapter 7 Responses to Fraud 123

Government's Response to Fraud 124

Accounting Profession's Response to Fraud 129

Internal Audit Profession's Response to Fraud 133

New Credentials, More Training, Better Awareness 134

Articles, Books, and More Resources 136

Chapter 8 The Importance of Internal Controls and Internal Audit 143

Why Have Internal Controls? 144

Déjà Vu 148

Good Internal Controls 150

Internal Audit 152

Chapter 9 Evidence 159

What Is Evidence? 160

Documentation 163

Chapter 10 Conducting Fraud Investigations: A Practical Approach 171

Proactive Fraud Investigations 171

Discovery Investigations 172

Supportive Investigations 175

Strategy 178

Predication 180

The Investigative Plan 181

Conducting the Procedures 183

Findings 186

Use of the Findings 188

Chapter 11 Fraud Investigation Alternatives 189

Assessing the Feasibility of a Full Investigation 189

Monitoring Operational Areas at Risk of Fraud 197

Revamping Internal Controls: Closing the Barn Door 200

Doing Nothing? 203

Appendix A Vending 209

Lessons Learned 213

Appendix B Living a Façade 217

Prevention Techniques 221

Appendix C Disappearing Inventory 225

Internal Controls 230

Index 231

Produkt-Details

• Erscheint lt. Verlag: 10.3.2010
• Zusatzinfo: Exhibits: 2 B&W, 0 Color
• Sprache: englisch
• Themenwelt: Recht / Steuern ► Strafrecht ► Kriminologie
• Themenwelt: Sozialwissenschaften
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management
• Schlagworte: Accounting • Accounting Special Topics • Auditing • Rechnungswesen • Revision • Revision (Wirtsch.) • Spezialthemen Rechnungswesen • Stephen Pedneault, fraud, fraud prevention, healthcare fraud, banking fraud, white collar crime, identity theft, internal control, internal controls, corporate governance, financial abuse, employee embezzlements, forensic accounting, internal audit, financial fraud
• ISBN-10: 0-470-64784-1 / 0470647841
• ISBN-13: 978-0-470-64784-4 / 9780470647844