Executive Roadmap to Fraud Prevention and Internal Control: Creating a Culture of Compliance, 2nd Edition

Preface

Welcome to the second edition of Executive Roadmap to Fraud Prevention and Internal Control. The first edition was very well-received with excellent feedback from readers, and for that we are most appreciative. Nothing pleases authors more than to know their writing labor is providing educational value. This book is being used as a textbook at colleges and universities. It has been translated into Chinese and used in compliance programs as a reference source. Yet time and fraud march on. There have been events and changes since the original publication that require updating this book. For this second edition, we have kept what is still timeless and relevant while adding new material.

We continue to see fraud and corporate misdeeds with the inevitable impact and enforcement response. Dozens of companies were caught up in the government probes of backdating of stock options. The United States Department of Justice and the Securities and Exchange Commission ramped up investigations of corruption and bribery, bringing more and more prosecutions for violations of the Foreign Corrupt Practices Act. A huge accounting fraud occurred at a once highly regarded technology powerhouse in India. We witnessed the worst financial crisis since the Great Depression and the collapse of once-venerable financial institutions. As a result, new laws were enacted, including the Fraud Enforcement and Recovery Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank).