Fraud Examination and Prevention

by Albrecht, W. Steve

• ISBN13: 9780538726894
• ISBN10: 053872689X
• Format: Paperback
• Copyright: 2003-03-21
• Publisher: South-Western Educational Pub

Summary

Recent headlines regarding Enron and others spotlight the need for fraud prevention - in both business and private entities. Hundreds of thousands of incidents occur each year because of poor or inadequate accounting and financial control and security. Written by one of the foremost experts in the area of forensic accounting, this innovative book teaches companies and professionals how to reduce fraud losses - and how to effectively work to eliminate future frauds. It offers comprehensive coverage of fraud detection, warning signs, technology tools, investigation techniques (for auditors, security personnel and managers), financial statement screening, fraud risk in e-commerce, pro-active fraud risk and much more. The cost of fraud can be devastating. Fraud Examination and Fraud Prevention is an invaluable resource to accountants, financial officers, managers, business owners, attorneys, auditors and many others.

Author Biography

W. Steve Albrecht is the Arthur Anderson & Co. alumni professor of accountancy and the director of the School of Accountancy & Information Systems at Brigham Young University.

Table of Contents

PART ONE Introduction to Fraud
Chapter 1 The Nature of Fraud,	2	(15)
Seriousness of the Fraud Problem,	3	(2)
What Is Fraud?,	5	(2)
Types of Fraud,	7	(4)
Criminal and Civil Prosecution of Fraud,	11	(2)
Fraud-Related Careers,	13	(4)
Chapter 2 Who Commits Fraud and Why,	17	(29)
Who Commits Fraud,	18	(1)
Why People Commit Fraud,	19	(3)
The First Element: Pressure,	22	(4)
The Second Element: Opportunity,	26	(13)
The Third Element: Rationalization,	39	(3)
Summary,	42	(4)
Chapter 3 Fighting Fraud: An Overview,	46	(14)
Fraud Prevention,	47	(2)
Fraud Detection,	49	(3)
Fraud Investigation,	52	(3)
Legal Action,	55	(1)
Summary,	56	(4)
PART TWO Fraud Prevention
Chapter 4 Preventing Fraud,	60	(23)
Not Everyone Is Honest,	61	(12)
Preventing Management Fraud,	73	(2)
Preventing Fraud-A Summary,	75	(1)
A Comprehensive Approach to Fighting Fraud,	75	(2)
Organizations and Fraud-The Current Model,	77	(6)
PART THREE Fraud Detection
Chapter 5 Recognizing the Symptoms of Fraud,	83	(26)
Symptoms of Fraud,	84	(2)
Accounting Anomalies,	86	(6)
Internal Control Weaknesses,	92	(1)
Analytical Anomalies,	93	(5)
Extravagant Lifestyles,	98	(1)
Unusual Behaviors,	99	(3)
Tips and Complaints,	102	(5)
Summary,	107	(2)
Chapter 6 Proactive Approaches to Detecting Fraud,	109	(25)
Proactive Fraud Detection,	110	(1)
Inductive Method One: Commercial Data-Mining Software,	110	(1)
Inductive Method Two: Digital Analysis of Company Databases,	111	(4)
Deductive Fraud Detection,	115	(7)
Which Transaction-Based Approach Is Best?,	122	(1)
Analyzing Financial Statements Reports That Result from Transactions to Detect Fraud,	122	(8)
Detecting or Identifying Fraud Perpetrators,	130	(1)
Summary,	131	(3)
PART FOUR Fraud Investigation
Chapter 7 Investigating Theft and Concealment,	134	(24)
Theft Investigation Methods,	135	(8)
Concealment Investigation Methods,	143	(14)
Summary,	157	(1)
Chapter 8 Conversion Investigation Methods,	158	(16)
Federal Sources of Information,	159	(3)
State Sources of Information,	162	(1)
County and Local Records,	163	(1)
Private Sources of Information,	164	(1)
Financial Institution Records,	165	(1)
Publicly Available Databases,	166	(1)
On-line Sources of Information,	167	(3)
The Net Worth Method,	170	(3)
Summary,	173	(1)
Chapter 9 Inquiry Methods and Fraud Reports,	174	(61)
Honesty Testing,	174	(2)
Interviewing-An Overview,	176	(13)
Introductory Questions,	189	(5)
Informational Question,	194	(10)
Assessment Questions,	204	(7)
Closing Questions,	211	(2)
Admission-Seeking Questions,	213	(15)
Signed Statements,	228	(3)
The Fraud Report,	231	(1)
Summary,	231	(2)
Appendix 9.A: Sample Signed Statement,	233	(2)
PART FIVE Management Fraud
Chapter 10 Financial Statement Fraud,	235	(20)
The Growing Problem of Financial Statement Fraud,	237	(5)
A Framework for Detecting Financial Statement Fraud,	242	(11)
Summary,	253	(2)
Chapter 11 Revenue and Inventory Frauds,	255	(26)
Revenue Fraud,	256	(12)
Inventory and Cost of Goods Sold Frauds,	268	(12)
Summary,	280	(1)
Chapter 12 Liability, Expense, Asset, and Inadequate Disclosure Frauds,	281	(40)
Liability and Expense Frauds,	282	(14)
Asset Fraud,	296
Inadequate Disclosure, 3	10	(307)
Summary,	317	(4)
PART SIX Other Types of Fraud
Chapter 13 Fraud Against Organizations,	321	(12)
Fraud Statistics,	322	(1)
Asset Misappropriations,	323	(6)
Corruption,	329	(2)
Summary,	331	(2)
Chapter 14 Bankruptcy and Divorce Fraud,	333	(20)
The Bankruptcy Code,	335	(3)
Participants in the Bankruptcy Process,	338	(3)
Participants in Divorce Cases,	341	(1)
Fraud Investigator's Relationship to Participants in Bankruptcy Proceedings,	342	(1)
The Planned Bankruptcy Fraud,	343	(1)
Fraudulent Concealment of Assets or Income in Bankruptcies or Divorces,	344	(2)
Fraudulent Transfers,	346	(1)
Civil Liability for False Accusations,	347	(1)
Summary,	347	(2)
Appendix 14.A: Affidavit of Proposed Investigator,	349	(2)
Appendix 14.B: Application for Retention of Investigator,	351	(2)
Chapter 15 Fraud in E-Commerce,	353	(11)
Fraud Risks in E-Commerce,	354	(1)
Preventing Fraud in E-Commerce,	355	(6)
Detecting E-Business Fraud,	361	(1)
Summary,	361	(3)
PART SEVEN Resolution of Fraud
Chapter 16 Legal Follow-Up,	364	(15)
The Court System,	365	(2)
The Civil Litigation Process,	367	(4)
The Criminal Litigation Process,	371	(4)
Being an Expert Witness,	375	(4)
Glossary,	379	(12)
Index,	391