Corporate Fraud and Internal Control, + Software Demo A Framework for Prevention

by Cascarino, Richard E.

• ISBN13: 9781118301562
• ISBN10: 1118301560
• Edition: 1st
• Format: Hardcover
• Copyright: 2012-11-28
• Publisher: Wiley

Summary

Essential guidance for companies to examine and improve their fraud programs Corporate governance legislation has become increasingly concerned with the ongoing resilience of organizations and, particularly, with their ability to resist corporate fraud from the lowest levels to the upper echelons of executive management. It has become unacceptable for those responsible for corporate governance to claim, "I didn't know." Corporate Fraud and Internal Control focuses on the appropriateness of the design of the system of internal controls in fraud risk mitigation, as well as the mechanisms to ensure effective implementation and monitoring on an ongoing basis. Applicable for a wide variety of environments, including governmental, financial, manufacturing and e-business sectors Includes case studies from the United States, Europe, and Africa Follows the standards laid down by the Association of Certified Fraud Examiners, the internationally recognized body governing this activity Accompanying interrogation software demo (software demo is not included as part of this book's e-book file, but is available for download after purchase) Written by a fraud prevention leader, Corporate Fraud and Internal Control addresses the concerns of both management and audit in ensuring a demonstrable level of activity to ensure sustainability of the organization and minimization of the impacts of fraud, upon early detection.

Author Biography

RICHARD E. CASCARINO, CRMA, CFE, CIA, CISM, MBA, is a principal of Richard Cascarino & Associates. He has over thirty years' experience in audit training and consultancy and is a regular speaker at Institute of Internal Auditors (IIA) and Information Systems Audit and Control Association (ISACA) events throughout the United States, Africa, Europe, and the Middle East on fraud prevention, risk management, corporate governance, IT security, and internal auditing. He is a past president of the Institute of Internal Auditors (South Africa) and was the founding Regional Director of the Southern African Region of the Institute of Internal Auditors Inc. Cascarino is also a member of the Board of Regents for Higher Education at the Association of Certified Fraud Examiners.

Table of Contents

Preface

Chapter 1 Nature of Fraud

Fraud and Irregularities: Definitions and Concepts

Cost of Fraud

Notes

Chapter 2 Elements of the Crimes of Theft and Fraud

Document Fraud

Corroborating documents

Procurement Fraud

Bribery and Corruption

Industrial Espionage

Check Fraud and Money Laundering

Notes

Chapter 3 Frauds Against the Individual

Online Auction Fraud

Consumer Frauds

Telephone Frauds

Charity Frauds

Misrepresentation of material facts

Concealment of Material Facts

Advance fees (4-1-9) frauds

“Middleman” Frauds

Bait and switch

Larceny

Extortion

Counterfeit Goods and Intellectual Property

Affinity Frauds

Pyramid Schemes

Ponzi Schemes

Career Opportunities

Cash Recovery Frauds

Chapter 4 Frauds Against the Organization

Bankruptcy Fraud

Check Fraud

Obtaining Fraudulent Loans

Unsolicited Orders

Embezzlement

Bribery

Corruption

Conflicts of Interest

Breach of Fiduciary Duty

Theft of trade secrets

False claims

False Conveyancing

Tunnelling

Conspiracy

Lapping

Kiting

Fraudulent Affiliations

Counterfeit Money

Benefit Frauds

Insurance Fraud

Payment Card Frauds

Pension Frauds

Insider Trading

Tax Fraud

Insider Trading and Market Abuse

Click Fraud

Counterfeit Goods and Intellectual Property

Procurement fraud

Notes

Chapter 5 Fighting Corruption

Bribery in Contracts

Red Flags at Enron and WorldCom

Nepotism and Favoritism

Abuse of Authority

Developing an Overall Anti-Corruption Culture

Notes

Chapter 6 Role of Ethics in Fighting Fraud

How Moral Decisions Are Made

Nature and Role of Ethics

Managing ethical risk

Reporting of Fraud

Notes

Chapter 7 Controlling Fraud

Corporate Governance and Fraud Prevention

Audit Committee’s Role in Fighting Fraud

Internal Control and the Prevention of Fraud

Fighting Shrinkage

Internal Audit Role

Notes

Chapter 8 Fraud Risk Management

Establishing the Corporate Fraud Risk Profile

Roles of the Internal, External, and Forensic Auditor

Whistleblowing in Detecting Fraud

Note

Chapter 9 Investigating Fraud

Red flags and Indicators of Fraud

Corporate Fraud Indicators

Conducting an Investigation

Tools and Techniques

Use of the Polygraph

Documenting the Investigative Process

Evidence Analysis

Investigative Errors

After the Event

Establishing an Investigations Function

Tracing and Recovering Assets

Notes

Chapter 10 Computer Fraud and Countermeasures

Mainframe Architectures

Mainframe Communications

Control of servers

WAN Communications

WorkStation security

Mobile Computing and the Internet

Cloud Computing

Computer and Information Fraud

Monitoring Tools

Preventing eCommerce fraud

eCommerce control opportunities

e-Payments

Internal Control Best Practices

Newer Fraud Schemes

Protecting the Digital Assets

Foiling the Hackers

Investigating Computer Fraud

Detection of Incidents

Initial Response

Making forensic backups

Investigation

Network monitoring

Computer Law

Note

Chapter 11 Legal Issues Surrounding Fraud

Impact of a Constitution

Fraud and the Laws of Evidence

Asset Recovery

Labor Legislation and Fraud

Note

Chapter 12 Industry-Related Fraud Opportunities

Banking Fraud

Money Laundering

Health Care Fraud

Insurance Fraud

Tax Fraud

Social Security Fraud

Fraud After Death

Construction Fraud

Notes

Appendix A   Audit Committee Charter

Appendix B   Corporate Fraud Policy

Appendix C   Whistleblowing Policy

Appendix D   Fraud Prevention Checklist

Appendix E   Fraud Risk Questionnaire Sample

Appendix F   Fraud Risk Analysis

Appendix G Fraud CAATs

Glossary

About the Author

About the Web Site

Index