Corporate Fraud Handbook: Prevention and Detection

by Joseph T. Wells

Overview

It is much more cost effective to prevent fraud than to punish it and such is the focus of this comprehensive book, Occupational Fraud and Abuse Second Edition by Joe Wells and the Association of Certified Fraud Examiners. Like no other book on fraud, this book explains fraud schemes used by employees, owners, managers, and executives to defraud their customers and illustrates each scheme with real-life case studies submitted to the ACFE by acutal fraud examiners who aided in the case resolutions. It shows the reader how to spot the "red flags" of fraud, how to comply with recent regulations including Sarbanes-Oxley, and how to develop and implement effective preventative measures

Product Details

ISBN-13:	9781119351955
Publisher:	Wiley
Publication date:	03/31/2017
Sold by:	JOHN WILEY & SONS
Format:	eBook
Pages:	432
File size:	9 MB

About the Author

Dr. Joseph T. Wells is the founder and chairman of the Association of Certified Fraud Examiners (ACFE). He was a regular columnist for the Journal of Accountancy and is a past recipient of the Innovation in Accounting Education Award presented by the American Accounting Association (AAA).

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Table of Contents

	Preface	vii
	About the ACFE	x
1.	Introduction	1
	Defining Occupational Fraud and Abuse	1
	Research in Occupational Fraud and Abuse	5
	The 2004 Report to the Nation on Occupational Fraud and Abuse	24
Part I	Asset Misappropriations
2.	Introduction to Asset Misappropriations	51
	Overview	51
	Definition of Assets	51
	How Asset Misappropriations Affect Books of Account	52
3.	Skimming	63
	Case Study: Shy Doc Gave Good Face	63
	Overview	67
	Skimming Data from ACFE 2004 National Fraud Survey	67
	Unrecorded Sales	73
	Understated Sales and Receivables	77
	Theft of Checks through the Mail	78
	Case Study: Beverage Man Takes a Plunge	80
	Short-term Skimming	83
	Converting Stolen Checks	84
	Concealing the Fraud	87
	Detection	92
	Prevention	93
4.	Cash Larceny	97
	Case Study: Bank Teller Gets Nabbed for Theft	97
	Overview	100
	Cash Larceny Data from ACFE 2004 National Fraud Survey	100
	Incoming Cash	105
	Cash Larceny from the Deposit	110
	Case Study: The Ol'Fake Surprise Audit Gets 'em Every Time	113
	Miscellaneous Larceny Schemes	115
	Detection	115
	Prevention	117
5.	Check Tampering	119
	Case Study: A Wolf in Sheep's Clothing	119
	Overview	122
	Check Tampering Data from ACFE 2004 National Fraud Survey	122
	Forged Maker Schemes	128
	Intercepted Checks	133
	Forged Endorsement Schemes	133
	Altered Payee Schemes	137
	Concealed Check Schemes	140
	Authorized Maker Schemes	141
	Concealment	144
	Case Study: What Are Friends For?	146
	Detection	152
	Prevention	153
6.	Register Disbursement Schemes	157
	Case Study: Demotion Sets Fraud in Motion	157
	Overview	160
	Register Disbursement Data from ACFE 2004 National Fraud Survey	160
	False Refunds	165
	Case Study: A Silent Crime	167
	False Voids	170
	Concealing Register Disbursements	172
	Detection	173
	Prevention	174
7.	Billing Schemes	175
	Case Study: Medical School Treats Fraud and Abuse	175
	Overview	179
	Billing Scheme Data from ACFE 2004 National Fraud Survey	179
	Cash-Generating Schemes	184
	Invoicing via Shell Companies	184
	Invoicing via Nonaccomplice Vendors	189
	Case Study: For This Magazine, Internal Fraud Proved Hard to Digest	190
	Personal Purchases with Company Funds	194
	Detection	200
	Prevention	201
8.	Payroll and Expense Reimbursement Schemes	203
	Case Study: Say Cheese!	203
	Overview	206
	Payroll Scheme Data from ACFE 2004 National Fraud Survey	206
	Expense Reimbursement Schemes	222
	Case Study: Frequent Flier's Fraud Crashes	222
	Expense Reimbursement Data from ACFE 2004 National Fraud Survey	225
	Detection of Payroll Schemes	236
	Detection of Expense Reimbursement Schemes	237
	Prevention of Payroll Schemes	238
	Prevention of Expense Reimbursement Schemes	240
9.	Inventory and Other Assets	241
	Case Study: Chipping Away at High-Tech Theft	241
	Overview: Non-Cash Misappropriation Data from ACFE 2004 National Fraud Survey	244
	Misuse of Inventory and Other Assets	250
	Theft of Inventory and Other Assets	251
	Case Study: Hard Drives and Bad Luck	258
	Concealment	263
	Detection	265
	Prevention	269
Part II	Bribery and Corruption
10.	Bribery	273
	Case Study: Why Is This Furniture Falling Apart?	273
	Overview	276
	Corruption Data from ACFE 2004 National Fraud Survey	280
	Bribery Schemes	285
	Case Study: Keep Your Eye on the Salesman?	295
	Something of Value	298
	Economic Extortion	299
	Illegal Gratuities	299
	Detection	299
	Prevention	302
11.	Conflicts of Interest	305
	Case Study: Working Double Duty	305
	Overview	309
	Purchase Schemes	310
	Sales Schemes	312
	Other Schemes	313
	Case Study: A Parasite Farm	314
	Detection	316
	Prevention	317
Part III	Fraudulent Statements
12.	Fraudulent Statements	321
	Introduction	321
	Fraud in Financial Statements	325
	Major Generally Accepted Accounting Principles	328
	Responsibility for Financial Statements	332
	Users of Financial Statements	332
	Types of Financial Statements	333
	The Sarbanes-Oxley Act	334
	Financial Statement Fraud Data from ACFE 2004 National Fraud Survey	345
13.	Fraudulent Financial Statement Schemes	353
	Case Study: That Way Lies Madness	353
	Methods of Financial Statement Fraud	359
	Fictitious Revenues	359
	Timing Differences	362
	Case Study: The Importance of Timing	367
	Concealed Liabilities and Expenses	368
	Improper Disclosures	371
	Improper Asset Valuation	373
	Detection of Fraudulent Financial Statement Schemes	378
	Prevention of Financial Statement Fraud	395
	Case Study: All on the Surface	397
14.	Occupational Fraud and Abuse: The Big Picture	401
	Defining Abusive Conduct	401
	Measuring the Level of Occupational Fraud and Abuse	402
	Understanding Fraud Deterrence	405
	The Corporate Sentencing Guidelines	409
	The Ethical Connection	411
	Concluding Thoughts	412
Appendix	Code of Business Ethics and Conduct	415
	Bibliography	427
	Index	435

Editorial Reviews

"If you don't currently have a fraud prevention and detection handbook, this is the one to get" (AuditNet, 7/1/2004)

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