Fraud Smart

by Pickett, K. H. Spencer

• ISBN13: 9780470682586
• ISBN10: 0470682582
• Edition: 1st
• Format: Hardcover
• Copyright: 2012-02-27
• Publisher: Wiley

Summary

A professional guide to developing training for fraud risk and detection This book provides a simple but effective method of developing a fraud risk awareness strategy that focuses on training employees using a six-stage approach to this task that involves understanding the threat, appreciating respective responsibilities, embracing a sound moral compass, recognizing red flags, mastering suitable internal controls, and managing the risk of fraud. Using this step-by-step approach, all senior executives, managers, employees, and associates can develop an important new skill set that will help them understand and deal with the risk of fraud in the workplace.

Author Biography

KH Spencer Pickett has an international reputation as a leading author on the subject of internal auditing and specializes in the development of E-learning resources. Please see www.businesscontrolstraining.co.uk for further details.

Table of Contents

Preface	p. xi
Understanding the Threat	p. 1
What Do We Mean by Fraud?	p. 3
What Can Go Wrong?	p. 4
What Do the Experts Say?	p. 6
Our Model Explained	p. 8
Income	p. 8
Expenditure	p. 9
Assets	p. 10
Data	p. 11
Our Three Key Conclusions	p. 12
A Wide Range of Threats	p. 13
What Can Go Wrong?	p. 13
What Do the Experts Say?	p. 17
Our Model Explained	p. 19
Simple	p. 20
Complex	p. 21
Internal	p. 22
External	p. 23
Our Three Key Conclusions	p. 24
The Global Scene	p. 25
What Can Go Wrong?	p. 25
What Do the Experts Say?	p. 28
Our Model Explained	p. 29
Domestic	p. 30
Foreign	p. 30
Goods and Services	p. 31
Financial Data	p. 31
Personal Identity	p. 32
Image Versus Reality	p. 33
Our Three Key Conclusions	p. 33
Building Your Fraud Smart Toolkit	p. 35
Key Learning Objectives	p. 35
Part I Multichoice Quiz	p. 41
Appreciating Respective Roles	p. 47
Fraud Smart Roles and Responsibilities	p. 49
What Can Go Wrong?	p. 49
What Do the Experts Say?	p. 51
Our Model Explained	p. 54
Corporate Anti-Fraud Policy	p. 55
Fraud Prevention	p. 55
Fraud Detection	p. 56
Fraud Response	p. 57
Our Three Key Conclusions	p. 58
Fraud Smart Skills Profile	p. 59
What Can Go Wrong?	p. 59
What Do the Experts Say?	p. 61
Our Model Explained	p. 63
Compliant	p. 63
Honest	p. 65
Competent	p. 65
Astute	p. 66
Our Three Key Conclusions	p. 67
Fraud Smart Training Needs	p. 69
What Can Go Wrong?	p. 69
What Do the Experts Say?	p. 71
Our Model Explained	p. 72
Anti-Fraud Policy	p. 73
Training Policy	p. 74
Fraud Control Responsibilities	p. 74
Current Versus Required Profile	p. 74
Personal Development Strategy	p. 76
Our Three Key Conclusions	p. 76
Building Your Fraud Smart Toolkit	p. 79
Key Learning Objectives	p. 79
Part II Multichoice Quiz	p. 84
Embracing Sound Ethics	p. 91
The Moral Compass	p. 93
What Can Go Wrong?	p. 93
What Do the Experts Say?	p. 95
Our Model Explained	p. 96
Societal Best Interests	p. 96
Corporate Best Interests	p. 97
Personal Best Interests	p. 98
Our Three Key Conclusions	p. 99
Implementing Values	p. 101
What Can Go Wrong?	p. 101
What Do the Experts Say?	p. 103
Our Model Explained	p. 104
Corporate Code of Ethics	p. 105
Awareness	p. 106
Disciplinary Code	p. 107
Assessment	p. 108
Cultural Integration	p. 108
Our Three Key Conclusions	p. 109
Whistleblowing	p. 111
What Can Go Wrong?	p. 11l
What Do the Experts Say?	p. 113
Our Model Explained	p. 115
Stance	p. 116
Manager	p. 117
Facilities	p. 118
Experience	p. 118
Awareness and Trust	p. 119
Our Three Key Conclusions	p. 120
Building Your Fraud Smart Toolkit	p. 121
Key Learning Objectives	p. 121
Part III Multichoice Quiz	p. 126
Recognizing Red Flags	p. 133
The Ingredients of Fraud	p. 135
What Can Go Wrong?	p. 135
What Do the Experts Say?	p. 137
Our Model Explained	p. 138
Benefits	p. 138
Access	p. 140
Motive	p. 141
Concealment	p. 142
Our Three Key Conclusions	p. 142
Why People Slip Up	p. 145
What Can Go Wrong?	p. 145
What Do the Experts Say?	p. 148
Our Model Explained	p. 149
Basic Salary Versus Added Pressure	p. 150
Personal Needs Met?	p. 150
Rationalization	p. 151
Legality Versus Illegality	p. 151
Our Three Key Conclusions	p. 152
Recognizing Red Flags	p. 153
What Can Go Wrong?	p. 153
What Do the Experts Say?	p. 156
Our Model Explained	p. 157
Lifestyle	p. 158
Position	p. 158
Behaviour	p. 159
Our Three Key Conclusions	p. 161
Building Your Fraud Smart Toolkit	p. 163
Key Learning Objectives	p. 163
Part IV Multichoice Quiz	p. 169
Mastering Suitable Controls	p. 177
The Control Concept	p. 179
What Can Go Wrong?	p. 179
What Do the Experts Say?	p. 180
Our Model Explained	p. 181
Control Environment	p. 182
Risk Assessment	p. 183
Controls	p. 184
Monitoring	p. 184
Objectives, Information and Communication	p. 185
Three Key Conclusions	p. 186
Basic Controls	p. 189
What Can Go Wrong?	p. 189
What Do the Experts Say?	p. 191
Our Model Explained	p. 192
Authorization	p. 193
Exceptions	p. 194
Procedures	p. 194
Verification	p. 195
Supervision	p. 195
Segregation of Duties	p. 196
Our Three Key Conclusions	p. 196
Fraud Smart Risk Management	p. 199
What Can Go Wrong?	p. 199
What Do the Experts Say?	p. 201
Our Model Explained	p. 203
Objectives and Business Strategy	p. 204
Anti-Fraud Policy	p. 204
Threat Assessment	p. 206
Control Review	p. 207
Risk Management Strategy	p. 208
Detection Routines	p. 208
Response and Fix Tools	p. 209
Staff Surveys	p. 211
Enterprise Risk Management	p. 212
Our Three Key Conclusions	p. 212
Building Your Fraud Smart Toolkit	p. 215
Key Learning Objectives	p. 215
Part V Multichoice Quiz	p. 221
Corporate Fraud Smart Policy	p. 227
Multichoice Quiz: Answers	p. 245
Faud Smart: Your Score Sheet	p. 247
Index	p. 249
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