Fraud 101: Techniques and Strategies for Understanding Fraud / Edition 3

Fraud 101: Techniques and Strategies for Understanding Fraud / Edition 3

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by Stephen Pedneault
     
 

If an employee brings home some office supplies for their kids to use with their school projects, is that fraud? How about when an employee charges personal items on the company's credit cards, receives vendor kickbacks, or inflates travel expenses? Instances of fraud occur every day and either go undetected, or are not deemed newsworthy enough to bring any

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Overview

If an employee brings home some office supplies for their kids to use with their school projects, is that fraud? How about when an employee charges personal items on the company's credit cards, receives vendor kickbacks, or inflates travel expenses? Instances of fraud occur every day and either go undetected, or are not deemed newsworthy enough to bring any attention to the matter. In fact, instances like these may be occurring right now in your organization—how will you know what to look for? And how can you stop it from taking place again?

Now fully revised, Fraud 101, Third Edition explains fraud in a practical, easily understood manner, serving as an enlightening tool for you, whether you are a business owner or manager, an accountant, or an auditor. A valuable introduction for dealing with fraud—from preventing and detecting it to investigating it, Fraud 101, Third Edition provides insightful advice on the inner workings of numerous financial schemes and the internal controls that will increase your awareness and possibly prevent fraud from destroying your organization's financial stability.

Offering guidance, understanding and new, real-world case studies on the major types of fraud, this new edition explores:

  • Why fraud is committed
  • An overview of financial fraud schemes
  • White-collar crime
  • Employee embezzlements
  • Internal fraud controls
  • The nature of collecting evidence
  • Investigative issues, including alternatives for resolving fraud-related matters
  • How to perform an effective investigation
  • Sample investigation procedures for the major fraud categories

Regardless of why an individual perpetrates a fraud, the end result is usually the same: a substantial financial loss to the organization, often involving a significant amount of money that may never be recovered. Fraud 101, Third Edition will show you how fraud schemes are perpetrated, detected, and investigated, with practical advice on how to notice and prevent fraudulent activity, minimizing the loss experienced by your organization.

Highly readable and accessible, this timely book provides you with the methods and tips you need to readily recognize and investigate financial fraud and combat fraud in your organization.

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Product Details

ISBN-13:
9780470481967
Publisher:
Wiley
Publication date:
09/22/2009
Pages:
234
Sales rank:
1,395,618
Product dimensions:
6.10(w) x 9.10(h) x 0.90(d)

Table of Contents

Preface.

Acknowledgments.

Introduction.

CHAPTER 1 The World of Fraud.

Definition of Fraud.

The Many Types of Fraud.

CHAPTER 2 Why Is Fraud Committed?

A Rationalizing Society.

Financial Statement Fraud.

Financial Fraud Comes in Different Shapes and Sizes.

Motivators Differ by Type of Business.

Employee Schemes.

In the End.

CHAPTER 3 Financial Statement Fraud Schemes.

Where Do Things Go Wrong?

Trend Analysis.

Beyond Traditional Audits.

CHAPTER 4 Employee Embezzlements.

The Fraud Triangle.

Areas for Concern.

CHAPTER 5 Other Fraud Schemes.

Duplicate Payment Fraud.

Multiple Payee Fraud.

Shell Fraud.

Defective Delivery Fraud.

Defective Receipt Fraud.

Defective Shipment Fraud.

Defective Pricing Fraud.

CHAPTER 6 Contract Rigging Schemes.

Stage One: Obtaining the Contract.

Stage Two: Contract Change Orders.

Unbalanced Bidding.

Detection Recommendations.

Rotation Fraud.

Where Do We Go from Here?

CHAPTER 7 Responses to Fraud.

Government’s Response to Fraud.

Accounting Profession’s Response to Fraud.

Internal Audit Profession’s Response to Fraud.

New Credentials, More Training, Better Awareness.

Articles, Books, and More Resources.

CHAPTER 8 The Importance of Internal Controls and Internal Audit.

Why Have Internal Controls?

Déjá Vu.

Good Internal Controls.

Internal Audit.

CHAPTER 9 Evidence.

What Is Evidence?

Documentation.

CHAPTER 10 Conducting Fraud Investigations: A Practical Approach.

Proactive Fraud Investigations.

Discovery Investigations.

Supportive Investigations.

Strategy.

Predication.

The Investigative Plan.

Conducting the Procedures.

Findings.

Use of the Findings.

CHAPTER 11 Fraud Investigation Alternatives.

Assessing the Feasibility of a Full Investigation.

Monitoring Operational Areas at Risk of Fraud.

Revamping Internal Controls: Closing the Barn Door.

Doing Nothing?

APPENDIX A Vending Lessons Learned.

APPENDIX B Living a Facade Prevention Techniques.

APPENDIX C Disappearing Inventory.

Internal Controls.

Index.

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