Corporate fraud handbook: prevention and detection

Preface. About the ACFE. 1. INTRODUCTION. Defining Occupational Fraud and Abuse. Research in Occupational Fraud and Abuse. The 2006 Report to the Nation on Occupational Fraud and Abuse. PART I:ASSET MISAPPROPRIATIONS. 2. INTRODUCTION TO ASSET MISAPPROPRIATIONS. Overview. Definition of Assets. How Asset Misappropriations Affect Books of Account. 3. SKIMMING. Case Study: Shy Doc Gave Good Face. Overview. Skimming Data from ACFE 2006 National Fraud Survey. Unrecorded Sales. Understated Sales and Receivables. Theft of Checks through the Mail. Case Study: Beverage Man Takes the Plunge. Short-term Skimming. Converting Stolen Checks. Concealing the Fraud. Detection. Prevention. 4. CASH LARCENY. Case Study: Bank Teller Gets Nabbed for Theft. Overview. Cash Larceny Data from ACFE 2006 National Fraud Survey. Incoming Cash. Cash Larceny from the Deposit. Case Study: The Ol'Fake Surprise Audit Gets 'em Every Time. Miscellaneous Larceny Schemes. Detection. Prevention. 5. CHECK TAMPERING. Case Study: A Wolf in Sheep's Clothing. Overview. Check Tampering Data from ACFE 2006 National Fraud Survey. Forged Maker Schemes. Intercepted Checks. Forged Endorsement Schemes. Altered Payee Schemes. Concealed Check Schemes. Authorized Maker Schemes. Concealment. Case Study: What Are Friends For? Detection. Prevention. 6. REGISTER DISBURSEMENT SCHEMES. Case Study: Demotion Sets Fraud in Motion. Overview. Register Disbursement Data from ACFE 2006 National Fraud Survey. False Refunds. Case Study: A Silent Crime. False Voids. Concealing Register Disbursements. Detection. Prevention. 7. BILLING SCHEMES. Case Study: Medical School Treats Fraud and Abuse. Overview. Billing Scheme Data from ACFE 2006 National Fraud Survey. Cash-Generating Schemes. Invoicing via Shell Companies. Invoicing via Nonaccomplice Vendors. Personal Purchases with Company Funds. Case Study: For This Magazine, Internal Fraud Proved Hard to Digest. Detection. Prevention. 8. PAYROLL AND EXPENSE REIMBURSEMENT SCHEMES. Case Study: Say Cheese! Overview. Payroll Scheme Data from ACFE 2006 National Fraud Survey. Payroll Schemes. Case Study: Frequent Flier's Fraud Crashes. Expense Reimbursement Data from ACFE 2006 National Fraud Survey. Expense Reimbursement Schemes. Detection of Payroll Schemes. Detection of Expense Reimbursement Schemes. Prevention of Payroll Schemes. Prevention of Expense Reimbursement Schemes. 9. INVENTORY AND OTHER ASSETS. Case Study: Chipping Away at High-Tech Theft. Overview: Noncash Misappropriation Data from ACFE 2006 National Fraud Survey. Misuse of Inventory and Other Assets. Theft of Inventory and Other Assets. Case Study: Hard Drives and Bad Luck. Concealment. Detection. Prevention. PART II: CORRUPTION. 10. BRIBERY. Case Study: Why Is This Furniture Falling Apart? Overview. Corruption Data from ACFE 2006 National Fraud Survey. Bribery Schemes. Case Study: Keep Your Eye on the Salesman. Something of Value. Economic Extortion. Illegal Gratuities. Detection. Prevention. 11. CONFLICTS OF INTEREST. Case Study: Working Double Duty. Overview. Purchases Schemes. Sales Schemes. Other Schemes. Case Study: A Parasite Farm. Detection. Prevention. PART III: FRAUDULENT STATEMENTS. 12. FRAUDULENT STATEMENTS. Introduction. Fraud in Financial Statements. Major Generally Accepted Accounting Principles. Responsibility for Financial Statements. Users of Financial Statements. Types of Financial Statements. The Sarbanes-Oxley Act. Financial Statement Fraud Data from ACFE 2006 National Fraud Survey. 13. FRAUDULENT FINANCIAL STATEMENT SCHEMES. Case Study: That Way Lies Madness. Methods of Financial Statement Fraud. Fictitious Revenues. Timing Differences. Case Study: The Importance of Timing. Concealed Liabilities and Expenses. Improper Disclosures. Improper Asset Valuation. Detection of Fraudulent Financial Statement Schemes. Prevention of Financial Statement Fraud. Case Study: All on the Surface. 14. OCCUPATIONAL FRAUD AND ABUSE: THE BIG PICTURE. Defining Abusive Conduct. Measuring the Level of Occupational Fraud and Abuse. Understanding Fraud Deterrence. The Corporate Sentencing Guidelines. The Ethical Connection. Concluding Thoughts. Appendix: Code of Business Ethics and Conduct. Bibliography. Index.