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Corporate Fraud Handbook: Prevention and Detection, 4th Edition

Book Description

Put the brakes on fraud.

It is much more cost-effective to prevent fraud than to punish it. Providing an insider's look into the most prevalent fraud schemes used by employees, owners, managers, and executives, Corporate Fraud Handbook, Fourth Edition provides you with a systematic approach to stop fraud in its tracks before it happens.

Sharing his four decades of experience in the field of fraud detection and deterrence, author Dr. Joseph T. Wells—founder and chairman of the Association of Certified Fraud Examiners—brings each scheme to life by using real case studies submitted to the ACFE by the fraud examiners who investigated them.

Written for anyone responsible for reducing fraud losses and mitigating the risk of fraud, Corporate Fraud Handbook features:

  • Tips and techniques for quantifying financial losses from fraud schemes

  • Observations and conclusions in each chapter to help you devise prevention and detection strategies

  • Real-life case studies that provide a view inside the mind of a fraudster

  • The fraud tree, a systematic classification of the various types of occupational fraud

  • Statistics from the ACFE's 2012 Report to the Nations on Occupational Fraud and Abuse

From sophisticated investment swindles to petty theft, false overtime to bribery, discover how to prevent and detect corporate fraud with the expert guidance found in Corporate Fraud Handbook, Fourth Edition.

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright Page
  4. Dedication
  5. Preface
  6. About the ACFE
  7. Chapter 1: Introduction
    1. DEFINING “OCCUPATIONAL FRAUD AND ABUSE”
    2. RESEARCH IN OCCUPATIONAL FRAUD AND ABUSE
    3. 2012 REPORT TO THE NATION ON OCCUPATIONAL FRAUD AND ABUSE
    4. NOTES
  8. Part I: Asset Misappropriations
    1. Chapter 2: Introduction to Asset Misappropriations
      1. OVERVIEW
      2. DEFINITION OF “ASSETS”
      3. HOW ASSET MISAPPROPRIATIONS AFFECT BOOKS OF ACCOUNT
      4. NOTES
    2. Chapter 3: Skimming
      1. OVERVIEW
      2. SKIMMING DATA FROM THE ACFE 2011 GLOBAL FRAUD SURVEY
      3. UNRECORDED SALES
      4. UNDERSTATED SALES AND RECEIVABLES
      5. THEFT OF CHECKS THROUGH THE MAIL
      6. SHORT-TERM SKIMMING
      7. CONVERTING STOLEN CHECKS
      8. CONCEALING THE FRAUD
      9. DETECTION
      10. PREVENTION
      11. NOTES
    3. Chapter 4: Cash Larceny
      1. OVERVIEW
      2. CASH LARCENY DATA FROM THE ACFE 2011 GLOBAL FRAUD SURVEY
      3. INCOMING CASH
      4. CASH LARCENY FROM THE DEPOSIT
      5. MISCELLANEOUS LARCENY SCHEMES
      6. DETECTION
      7. PREVENTION
      8. NOTE
    4. Chapter 5: Check Tampering
      1. OVERVIEW
      2. CHECK TAMPERING DATA FROM THE ACFE 2011 GLOBAL FRAUD SURVEY
      3. FORGED MAKER SCHEMES
      4. INTERCEPTED CHECKS
      5. FORGED ENDORSEMENT SCHEMES
      6. ALTERED PAYEE SCHEMES
      7. CONCEALED CHECK SCHEMES
      8. AUTHORIZED MAKER SCHEMES
      9. CONCEALMENT
      10. DETECTION
      11. PREVENTION
      12. ELECTRONIC PAYMENT TAMPERING
      13. NOTES
    5. Chapter 6: Register Disbursement Schemes
      1. OVERVIEW
      2. REGISTER DISBURSEMENT DATA FROM THE ACFE 2011 GLOBAL FRAUD SURVEY
      3. FALSE REFUNDS
      4. FALSE VOIDS
      5. CONCEALING REGISTER DISBURSEMENTS
      6. DETECTION
      7. PREVENTION
      8. NOTE
    6. Chapter 7: Billing Schemes
      1. OVERVIEW
      2. BILLING SCHEME DATA FROM THE ACFE 2011 GLOBAL FRAUD SURVEY
      3. SHELL COMPANY SCHEMES
      4. NON-ACCOMPLICE VENDOR SCHEMES
      5. PERSONAL PURCHASES WITH COMPANY FUNDS
      6. DETECTION
      7. PREVENTION
      8. NOTE
    7. Chapter 8: Payroll and Expense Reimbursement Schemes
      1. OVERVIEW
      2. PAYROLL SCHEME DATA FROM THE ACFE 2011 GLOBAL FRAUD SURVEY
      3. PAYROLL SCHEMES
      4. EXPENSE REIMBURSEMENT DATA FROM THE ACFE 2011 GLOBAL FRAUD SURVEY
      5. EXPENSE REIMBURSEMENT SCHEMES
      6. DETECTION OF PAYROLL SCHEMES
      7. DETECTION OF EXPENSE REIMBURSEMENT SCHEMES
      8. PREVENTION OF PAYROLL SCHEMES
      9. PREVENTION OF EXPENSE REIMBURSEMENT SCHEMES
      10. NOTE
    8. Chapter 9: Inventory and Other Noncash Assets
      1. OVERVIEW: NONCASH MISAPPROPRIATION DATA FROM THE ACFE 2011 GLOBAL FRAUD SURVEY
      2. MISUSE OF INVENTORY AND OTHER ASSETS
      3. THEFT OF INVENTORY AND OTHER ASSETS
      4. CONCEALMENT
      5. DETECTION
      6. PREVENTION
      7. MISAPPROPRIATION OF INTANGIBLE ASSETS
      8. NOTES
  9. Part II: Corruption
    1. Chapter 10: Bribery
      1. OVERVIEW
      2. CORRUPTION DATA FROM THE ACFE 2011 GLOBAL FRAUD SURVEY
      3. BRIBERY SCHEMES
      4. SOMETHING OF VALUE
      5. ECONOMIC EXTORTION
      6. ILLEGAL GRATUITIES
      7. DETECTION
      8. PREVENTION
      9. ANTI­CORRUPTION LEGISLATION
      10. NOTES
    2. Chapter 11: Conflicts of Interest
      1. OVERVIEW
      2. PURCHASING SCHEMES
      3. SALES SCHEMES
      4. OTHER SCHEMESZ
      5. DETECTION
      6. PREVENTION
      7. NOTE
  10. Part III: Financial Statement Fraud
    1. Chapter 12: Accounting Principles and Fraud
      1. INTRODUCTION
      2. FRAUD IN FINANCIAL STATEMENTS
      3. MAJOR GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
      4. Responsibility for Financial Statements
      5. USERS OF FINANCIAL STATEMENTS
      6. TYPES OF FINANCIAL STATEMENTS
      7. SARBANES-OXLEY ACT
      8. FINANCIAL STATEMENT FRAUD DATA FROM THE ACFE 2011 GLOBAL FRAUD SURVEY
      9. NOTES
    2. Chapter 13: Financial Statement Fraud Schemes
      1. OVERVIEW
      2. DEFINING FINANCIAL STATEMENT FRAUD
      3. COSTS OF FINANCIAL STATEMENT FRAUD
      4. METHODS OF FINANCIAL STATEMENT FRAUD
      5. DETECTION OF FINANCIAL STATEMENT FRAUD SCHEMES
      6. DETERRENCE OF FINANCIAL STATEMENT FRAUD
      7. NOTES
    3. Chapter 14: Occupational Fraud and Abuse: The Big Picture
      1. DEFINING “ABUSIVE CONDUCT”
      2. MEASURING THE LEVEL OF OCCUPATIONAL FRAUD AND ABUSE
      3. UNDERSTANDING FRAUD DETERRENCE
      4. CORPORATE SENTENCING GUIDELINES
      5. ETHICAL CONNECTION
      6. CONCLUDING THOUGHTS
      7. NOTES
  11. Appendix: Sample Code of Business Ethics and Conduct
    1. INTRODUCTION
    2. CONFLICTS OF INTEREST
    3. COMPANY ASSETS
    4. POLITICAL CONTRIBUTIONS
    5. EMPLOYEE CONDUCT
    6. COMPLIANCE LETTER AND CONFLICT OF INTEREST QUESTIONNAIRE
  12. Bibliography
  13. Index