Corporate Fraud Handbook: Prevention and Detection

The Utility Belt for Occupational Crime Fighters

Corporate Fraud Handbook, Fifth Edition is the authoritative resource for identifying and preventing all the various types of fraud eating away at too many of today′s organizations. Written by the founder and chairman of the Association of Certified Fraud Examiners (ACFE), this practical guidebook offers unmatched real–world insights into exactly how the most prevalent types of occupational crime are committed and how to stay a step ahead of it all through preventative measures. Extensively updated with fresh examples and statistics, this single resource enables you to:

Develop a remarkable expertise in fraud detection and prevention based on your understanding of fundamental business procedures and terminology Identify the "red flags" for the most common types of asset misappropriation, corruption, and financial statement fraud Design and implement a state–of–the–art program for preventing fraud at every level of an organization

Fraud can be committed by anyone at any level of an organization, and Corporate Fraud Handbook, Fifth Edition shows you every way it happens and all the ways to see it, stop it, and calculate your losses.

Preface

About the ACFE

Chapter 1: Introduction

Defining Occupational Fraud and Abuse

Research in Occupational Fraud and Abuse

2016 Report to the Nation on Occupational Fraud and Abuse

PART I: ASSET MISAPPROPRIATIONS

Chapter 2: Introduction to Asset Misappropriations

Overview

Definition of Assets

How Asset Misappropriations Affect Books of Account

CHAPTER 3: Skimming

Skimming Data from the ACFE 2015 Global Fraud Survey

Unrecorded Sales

Understated Sales and Receivables

Theft of Checks Through The Mail

Short–Term Skimming

Converting Stolen Checks

Concealing The Fraud

Detection

Prevention

Chapter 4: Cash Larceny

Overview

Cash Larceny Data from the ACFE 2015 Global Fraud Survey

Incoming Cash

Cash Larceny from the Deposit

Miscellaneous Larceny Schemes

Detection

Prevention

Chapter 5: Check Tampering

Overview

Check Tampering Data from the ACFE 2015 Global Fraud Survey

Forged Maker Schemes

Intercepted Checks

Forged Endorsement Schemes

Altered Payee Schemes

Concealed Check Schemes

Authorized Maker Schemes

Concealment

Detection

Check Tampering Red Flags

Prevention

Electronic Payment Tampering

Chapter 6: Register Disbursement Schemes

Overview

Register Disbursement Data from the ACFE 2015 Global Fraud Survey

False Refunds

False Voids

Concealing Register Disbursements

Detection

Prevention

Chapter 7: Billing Schemes

Overview

Billing Scheme Data from the ACFE 2015 Global Fraud Survey

Shell Company Schemes

Non–Accomplice Vendor Schemes

Personal Purchases with Company Funds

Detection

Prevention

Chapter 8: Payroll and Expense Reimbursement Schemes

Overview

Payroll Scheme Data from the ACFE 2015 Global Fraud Survey

Payroll Schemes

Detection of Payroll Schemes

Prevention of Payroll Schemes

Expense Reimbursement Data from The ACFE 2015 Global Fraud Survey

Expense Reimbursement Schemes

Detection of Expense Reimbursement Schemes

Prevention of Expense Reimbursement Schemes

Chapter 9: Inventory and Other Noncash Assets

Overview: Noncash Misappropriation Data from the ACFE 2015 Global Fraud Survey

Misuse of Inventory and Other Assets

Theft of Inventory and Other Assets

Concealment

Detection

Prevention

Misappropriation of Intangible Assets

PART II: CORRUPTION

Chapter 10: Bribery

Overview

Corruption Data from the ACFE 2015 Global Fraud Survey

Bribery Schemes

Something of Value

Economic Extortion

Illegal Gratuities

Detection

Prevention

Anti–Corruption Legislation

Chapter 11: Conflicts of Interest

Overview

Purchasing Schemes

Sales Schemes

Other Schemes

Detection

Prevention

PART III: FINANCIAL STATEMENT FRAUD

Chapter 12: Accounting Principles and Fraud

Introduction

Fraud in Financial Statements

Major Generally Accepted Accounting Principles

Responsibility for Financial Statements

Users of Financial Statements

Types of Financial Statements

Sarbanes–Oxley Act

Financial Statement Fraud Data from the ACFE 2015 Global Fraud Survey

Chapter 13: Financial Statement Fraud Schemes

Overview

Defining Financial Statement Fraud

Costs of Financial Statement Fraud

Methods of Financial Statement Fraud

Detection of Financial Statement Fraud Schemes

Deterrence of Financial Statement Fraud

Chapter 14: Occupational Fraud and Abuse: The Big Picture

Defining Abusive Conduct

Measuring the Level of Occupational Fraud and Abuse

Understanding Fraud Deterrence

Corporate Sentencing Guidelines

Ethical Connection

Concluding Thoughts

Appendix: Sample Code of Business Ethics and Conduct

Bibliography

Index

Dr. Joseph T. Wells is the founder and chairman of the Association of Certified Fraud Examiners (ACFE). He was a regular columnist for the Journal of Accountancy and is a past recipient of the Innovation in Accounting Education Award presented by the American Accounting Association (AAA).