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Detecting Fraud in Organizations: Techniques, Tools, and Resources

Book Description

A savvy examination of where people and value meet, creating the opportunity for fraud

An essential reference for all business professionals, Detecting Fraud in Organizations: Techniques, Tools, and Resources explains the process of how people commit fraud, as well as how to prevent and stop fraud from occurring in your organization. Organized by business processes which succinctly describe how fraud manifests itself on a daily basis, the authors explain ways in which everyone can help guard against fraud by familiarizing themselves with its building blocks and methods used to perpetrate and conceal it. Filled with situational examples the book is accompanied by a website featuring fraud simulations, business process maps, and other useful tools for combating fraud.

  • Focuses on the people who perpetrate fraud and those who are tasked with preventing and detecting it

  • Uniquely organized by business processes for more relevance and easier understanding by those people working within organizations

  • Shows how subtle factors play a large role in identifying and ferreting out fraud in addition to the traditional knowledge of fraud schemes giving people and organizations the edge they need to be successful in prevention and deterrence

  • Companion website includes additional fraud simulations, business process maps, and useful tools

  • The price of fraud can be devastating to your business. Detecting Fraud in Organizations: Techniques, Tools, and Resources equips you and others in your organization with essential information and tools necessary to proactively catch fraud, reduce losses, improve efficiencies and develop actionable controls.

    Note: The ebook version does not provide access to the companion files.

    Table of Contents

    1. Cover
    2. Series Page
    3. Title Page
    4. Copyright
    5. Preface
    6. Acknowledgments
    7. Introduction
      1. THE 800-POUND FRIENDLY GORILLA
      2. NUMBERS DON’T LIE, PEOPLE DO
      3. AN OVERVIEW OF FRAUD
      4. THE ONE-MINUTE FRAUD MYSTERIES
      5. A FEW TIPS FOR DETECTING FRAUD AS YOU BEGIN
      6. SETUP
      7. NOTE
    8. Chapter One: Understanding Fraud
      1. PEOPLE ARE GREEDY—HOW GREEDY ARE YOU?
      2. ONE-MINUTE FRAUD MYSTERY: TRUST US INC.
      3. DISTINGUISHING AMONG DETERRENCE, PREVENTION, AND DETECTION
      4. THE INCREASED RISK OF FRAUD LOSS
      5. DIVERGENT AND CONVERGENT THINKING
      6. CRITICAL THINKING REQUIRES CRITICAL QUESTIONS
      7. THE PERSONALITY TRAITS OF A FRAUDSTER
      8. THE MORAL COMPASS
      9. THE ELEMENTS OF FRAUD: MIRD
      10. EDUCATION ABOUT FRAUD
      11. CONFUSION ABOUT RESPONSIBILITY
      12. COMPLEXITY
      13. SUMMARY
      14. ONE-MINUTE FRAUD MYSTERY ANALYSIS
      15. NOTES
    9. Chapter Two: Fraud Detection Approaches
      1. WHY DOESN’T ENHANCED LEGISLATIVE, REGULATORY, AND PROFESSIONAL OVERSIGHT HELP TO PREVENT FRAUD?
      2. ONE-MINUTE FRAUD MYSTERY: BIG FISH INVESTMENT INC.
      3. PRINCIPLES AND RULES ALONE CANNOT ELIMINATE ALL FRAUD
      4. A REAL-WORLD PERSPECTIVE
      5. GETTING A HANDLE ON TRANSACTIONS
      6. THE 10 FORENSICALLY ACCEPTED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE ASSUMPTIONS
      7. SUMMARY
      8. ONE-MINUTE FRAUD MYSTERY ANALYSIS
      9. NOTES
    10. Chapter Three: Deciding to Commit Fraud
      1. ONE-MINUTE FRAUD MYSTERY: THE HOUSE OF WORSHIP
      2. DO YOU REALLY KNOW WHAT THE PEOPLE IN YOUR ORGANIZATION ARE THINKING?
      3. THE FOUR GENERATIONS AND MOTIVATION
      4. PINPOINTING THE FRAUDSTER
      5. THE THREE MOST PREVALENT TYPES OF FRAUD
      6. AN ACCOUNTING CREED
      7. THE CONSEQUENCES OF FRAUD
      8. SUMMARY
      9. ONE-MINUTE FRAUD MYSTERY ANALYSIS
      10. NOTES
    11. Chapter Four: How to Act Like a Fraudster
      1. ONE-MINUTE FRAUD MYSTERY: CATCH ME IF YOU CAN INC.
      2. THE SIX Ps OF SUCCESSFUL FRAUDSTERS
      3. THE CHARACTERISTICS OF A FRAUDSTER
      4. FRAUDSTERS AND THEIR ORGANIZATIONS
      5. SUMMARY
      6. ONE-MINUTE FRAUD MYSTERY ANALYSIS
      7. NOTES
    12. Chapter Five: The Dynamics of Business
      1. ONE-MINUTE FRAUD MYSTERY: ACCRUAL INC.
      2. CONTROL-POINT LINKS AND ACCOUNTABILITY
      3. THE LAYERS OF TRUST
      4. RESPONSIBILITY CHAINS
      5. A FAILURE IN MANAGEMENT
      6. MORE THAN THE BOTTOM LINE
      7. OUTSIDE INFLUENCES
      8. ORGANIZATIONAL FAILURES
      9. UNDERSTANDING CASH FLOWS
      10. SUMMARY
      11. ONE-MINUTE FRAUD MYSTERY ANALYSIS
      12. NOTES
    13. Chapter Six: Understanding the Accounting Process
      1. ONE-MINUTE FRAUD MYSTERY: SNEAKERS ARE US INC.
      2. UNDERSTANDING THE SALE OF GOODS
      3. DECEPTIVE DATA
      4. COMPUTERIZED FRAUD TECHNIQUES
      5. OPERATING EXPENSES
      6. BALANCED PRINCIPLES
      7. BALANCE SHEET COMPONENTS
      8. STATEMENT OF CASH FLOWS
      9. RATIO ANALYSIS
      10. BUILDING A CASE: DOCUMENT ORGANIZATION, DATA ANALYSIS, AND LIFESTYLE ANALYSIS
      11. SUMMARY
      12. ONE-MINUTE FRAUD MYSTERY ANALYSIS
      13. NOTES
    14. Chapter Seven: It All Comes Down to Cash
      1. ONE-MINUTE FRAUD MYSTERY:YANKEE PROPERTY MANAGEMENT
      2. HANDLING CASH
      3. CASH DISBURSEMENT CONTROLS
      4. CASH AND FRAUD
      5. CLASSIFICATIONS OF CASH AND CASH-EQUIVALENT FRAUD SCHEMES AND SCENARIOS
      6. FRAUD CONTROL POINTS IN THE ORGANIZATIONAL PROCESS
      7. SUMMARY
      8. ONE-MINUTE FRAUD MYSTERY ANALYSIS
      9. NOTES
    15. Chapter Eight: Final Thoughts
      1. POP: FINDING THE NEXT POTENTIAL FRAUD KERNEL IN YOUR ORGANIZATION
      2. QUICK REFERENCES ON THE FUNDAMENTALS OF FRAUD
      3. GAAP VERSUS FAGAAPA: A SUMMARY
      4. FIVE CATEGORIES OF FRAUD
      5. WHY AUDITORS AND ACCOUNTANTS FAIL TO DETECT FRAUD
      6. RED FLAGS FOR POTENTIAL FRAUD
      7. USING THE ACCRUALS-TO-ASSETS RATIO
      8. A SIMPLE FRAUD RISK PLAN
      9. CONCLUSION
      10. NOTES
    16. Afterword
    17. Bibliography
    18. About the Author
    19. About the Website
    20. Index