Synopses & Reviews
Occupational fraud and abuse is a widespread problem that affects practically every organization, regardless of size, location, or industry. While the high-profile cases of Enron and Tyco have increased public awareness of this type of fraud, the truth remains that accidents or anonymous tips only detect about two-thirds of known fraud cases. Detection in this manner is extremely inadequate and also can be exceedingly costly for your company. Discover how to become proactive in detecting and preventing financial fraud in your organization with the tools and techniques in Fraud 101, Second Edition.
Demonstrating where traditional methods of fraud detection fall short, Fraud 101 provides step-by-step guidance showing you how to perform a proactive fraud investigation. If you're a beginning auditor or one with years of experience, this Second Edition tells you:
- What to search for
- How to search for it
- How to know when you're finished
- When a case is ready for reactive case development
- When to quit
Building upon the pioneering groundwork set by the late Howard Daviawho had more than thirty years of experience as a proactive fraud-specific investigatorFraud 101, Second Edition takes Davia's original concepts and ideas and updates them to reflect the many developments that have taken place in the current global business climate. This Second Edition provides you with the latest tools for preventing and searching for fraud, including expanded coverage of financial statement fraud, internal controls, and Sarbanes-Oxley. Other key features include:
- Step-by-step guidance on how to perform an effective investigation
- Numerous real-world case studies, many of which are based on the authors' actual experiences
- Discussions of the major types of fraud, complete with sample investigation procedures for each
- New tools and case studies that cover financial fraud
- And much more
Serving as an educational tool for business managers and owners, CFOs, accountants, controllers, auditors, and college students, Fraud 101, Second Edition provides the critical tools to combat fraud in any organization.
Synopsis
Unique insights into the nature of fraud and how to expose it
It's not enough to wait for a tip to expose corporate fraud. Fraud 101, Second Edition provides step-by-step guidance on how to perform detection procedures for every major type of fraud. Its new and detailed case studies reveal how easy it can be for a perpetrator to commit a fraud and how difficult it can be to prosecute. This new edition also offers expanded coverage of financial statement fraud, fraud-specific internal control, and Sarbanes-Oxley.
Synopsis
Unique insights into the nature of fraud and how to expose it
It's not enough to wait for a tip to expose corporate fraud. Fraud 101, Second Edition provides step-by-step guidance on how to perform detection procedures for every major type of fraud. Its new and detailed case studies reveal how easy it can be for a perpetrator to commit a fraud and how difficult it can be to prosecute. This new edition also offers expanded coverage of financial statement fraud, fraud-specific internal control, and Sarbanes-Oxley.
Synopsis
The tools and know-how for keeping fraud out of your business
Based on Howard Davia's groundbreaking work, Fraud 101, Second Edition offers step-by-step guidelines to fraud detection and prevention, complete with the tools you need to stop fraud in its tracks before it even starts. Reflecting the latest techniques and standards, this Second Edition:
- Provides unique insights into the nature of fraud and the mind-set needed to combat it
- Discusses the latest legislation and other pronouncements
- Provides proven solutions showing how to expose different types of fraud
- Includes numerous case studies illustrating how easy it can be to commit fraud, and how difficult it can be to prosecute the crime
Root out fraud before it happens with the invaluable, hands-on approach found in Fraud 101, Second Edition.
About the Author
HOWARD M. SILVERSTONE, CPA, FCA, CFE, is founder and Director of Forensic Resolutions, Inc., a forensic accounting firm. He has concentrated on forensic and investigative accounting since 1985 and has been involved in all aspects of cases, including those involving fraud investigations, complex commercial litigation, insurance claims, and due diligence, both as a consulting and expert witness. He is also coauthor of Forensic Accounting and Fraud Investigation for Non-Experts (published by Wiley) and has contributed articles to The Legal Intelligencer, Security Management, and many other publications. He also contributed a chapter to The CPA's Handbook of Fraud and Commercial Crime Prevention, originally published in 2000 by the AICPA. He is a frequent speaker who has delivered presentations for professional organizations, law firms, and insurance companies.
HOWARD R. DAVIA (deceased) was a certified public accountant with more than thirty years of experience in government, industry, and public accounting. As an audit executive with both the U.S. General Accounting Office and the General Services Administration, and subsequently as a chief executive operating officer with the General Services Administration, he gained vast experience in the opportunities for fraud, as well as for its detection and deterrence. He is the author of Fraud 101 and coauthor of Accountant's Guide to Fraud Detection and Control, Second Edition (published by Wiley).
Table of Contents
Introduction.
1. The World of Fraud.
Who Commits Fraud and Why?
Fraud Prevention and Detection.
Notes.
2. Fraud Combatants.
Fraud Company Profile (1987–1997).
Auditor Responsibilities to Detect Fraud.
Financial Statement Audit versus Fraud Investigation.
Fraud Guidance.
Audit Deficiencies and Audit Failures.
The New World.
Recommended Reading.
Notes.
3. Sarbanes-Oxley and Its Influence on Fraud Prevention.
Audit Committee.
Code of Ethics.
Internal Controls.
Internal Audit.
Common Problems.
Note.
4. Proactive Fraud Investigations: An Introduction.
Fraud Investigations Defined.
Three Objectives of Fraud Investigations.
Proactive Fraud Investigations.
Advice for Inexperienced Fraud Investigators.
Notes.
5. Proactive Fraud Investigations: Conducting the Investigation.
Art of Fishing.
How Proactive Fraud Investigators Think and Work.
Beginning the Investigation.
Selecting a Fraud Type.
Fraud Investigation Procedure.
Summary.
Notes.
6. Elementary Fraud Types.
Three Elementary Fraud Types: Definitions.
Duplicate Payment Fraud.
Multiple Payee Fraud.
Shell Fraud.
Notes.
7. Fraud Defectives.
Defective Delivery Fraud.
Defective Shipment Fraud.
Defective Pricing Fraud.
Summary.
Notes.
8. Contract Rigging Fraud.
Definition.
Obtaining the Contract.
Contract Change Orders.
Unbalanced Bidding.
Detection Recommendations.
Rotation Fraud.
Note.
9. Ethical Behavior.
Accounting Ethical Standards.
Consequences of Unethical Behavior.
Codes of Conduct.
Notes.
10. Evidence.
Indicative Evidence.
Validating Evidence.
Notes.
11. Symptomatic Fraud Investigation.
Symptoms of Fraud.
Variations in Actual versus Planned Cost.
“Should Cost” Approach.
Employee Lifestyle Changes.
Notes.
12. Fraud Investigation Alternatives.
Monitoring Known or Suspected Fraud.
Monitoring Operational Areas at Risk of Fraud.
Fraud Investigations and Internal Control.
Note.
APPENDIX A: Anatomy of a Corporate Fraud.
APPENDIX B: Symptomatic Fraud Investigation Case Study.
APPENDIX C: Fraud-Specific Contract Review Case Study.
APPENDIX D: World Top Corporation Case Study.
Glossary.
Index.