Expert Fraud Investigation : A Step-by-Step Guide

by Tracy L. Coenen

• ISBN13: 9780470447833
• ISBN10: 0470447834
• Format: eBook
• Copyright: 2009-01-01
• Publisher: Wiley

Summary

A fraud investigation is aimed at examining evidence to determine if a fraud occurred, how it happened, who was involved, and how much money was lost. Investigations occur in cases ranging from embezzlement, to falsification of financial statements, to suspicious insurance claims. Expert Fraud Investigation: A Step-by-Step Guide provides all the tools to conduct a fraud investigation, detailing when and how to investigate. This guide takes the professional from the point of opening an investigation, selecting a team, gathering data, and through the entire investigation process. Business executives, auditors, and security professionals will benefit from this book, and companies will find this a useful tool for fighting fraud within their own organizations.

Table of Contents

Preface

Acknowledgments

Finding Fraud

Signs of Fraud

Looking for Suspects

Evaluating Fraud Tips

Should You Investigate?

Confronting Suspects

Skills of a Fraud Investigator

Differences between Audits and Investigations

Conducting a Fraud Investigation

Notes

Beginning the Investigation

Assessing the Engagement

Making Recommendations

Budgeting and Cost Control

Fees

Billing Practices

Engagement Letters

Managing the Case

Assembling the Team: Where to Start

Assembling the Team: Company Insiders

Assembling the Team: Key Participants

Assembling the Team: Outside Consultants

Importance of Credentials

Management and Supervision of Staff

Work Programs and Checklists

Document Management

Preserving Evidence

File Maintenance

Investigative Software

Professional Standards

When to Stop Investigating

Searching for Fraud

Analytical Review

Key Financial Ratios

Write-offs, Adjustments, and Miscellaneous

Manual Disbursements

What about Financial Statement Audits?

Looking for Fraud in Little Things

Sources of Information

Who Acquires Information

Internal Records

Private Records

Public Records

The Internet and Search Engines

Investigative Techniques

Corporate Background Checks

Individual Background Checks

Searching for Friends, Family, and Associates

Surveillance

Digital Data Analysis

Computer Forensics

Interviewing Witnesses and Suspects

Confirmation with Customers and Vendors

Creativity and the Fraud Investigator

Investigation of Asset Misappropriation Schemes

Cash Receipts Schemes

Disbursement Schemes

Noncash Schemes

Investigation of Financial Statement Fraud

Revenue Overstatement

Channel Stuffing

Round-Tripping

Asset Overstatement

Liability and Expense Understatement

Reserve Manipulation

Misrepresentation or Omission of Information

Improper Recording of Mergers and Acquisitions

Off-Balance-Sheet Items

Accounting Involves Judgment and Estimates

Earnings Management

Note

Investigation of Corruption Schemes

Bribes

Kickbacks

Extortion and Conflict of Interest

Related-Party Transactions

Money Laundering

Foreign Corrupt Practices Act (FCPA)

Prevention and Detection

Note

Investigation of External Fraud Schemes

Corporate Espionage

Investment Schemes

Pyramid or Ponzi Schemes

Securities Fraud

Hidden Income or Assets

Insurance Fraud

Bankruptcy Fraud

Note

Reporting and Litigation

Stick to the Facts

Keep it Simple

Background Information

Investigation Procedures

Opinions

Attachments

Draft Reports

Unfavorable Opinions

Follow-up to the Fraud Investigator's Work

Being an Expert Witness

Preparing for Testimony

Deposition Testimony

Trial Testimony

Note

Other Issues

Moving Forward as a Company

Preventing Future Frauds

Marketing a Fraud Investigation Practice

Competing with Other Firms

Conducting a Global Investigation

Professional Liability Issues

Reducing Fraud with Investigations

Note

Appendix

Index

Table of Contents provided by Publisher. All Rights Reserved.