Fraud Auditing and Forensic Accounting, Fourth Edition

Fraud Auditing and Forensic Accounting......Page 5
Contents......Page 8
Preface......Page 14
Acknowledgments......Page 16
INTRODUCTION......Page 18
BRIEF HISTORY OF FRAUD AND THE ANTIFRAUD PROFESSION......Page 20
THE FRAUD CYCLE......Page 24
REVIEW OF TECHNICAL LITERATURE......Page 26
FORENSIC ACCOUNTANT AND AUDITS......Page 28
FORENSIC ACCOUNTANTS......Page 37
FRAUD AUDITORS......Page 42
KEYS TO EFFECTIVE FRAUD INVESTIGATION......Page 48
THE ANTIFRAUD PROFESSIONAL’S CAREER......Page 50
SUMMARY......Page 53
NOTES......Page 54
INTRODUCTION......Page 56
DEFINITION: WHAT IS FRAUD?......Page 57
CLASSIC FRAUD RESEARCH......Page 59
FRAUD TRIANGLE......Page 61
SCOPE OF FRAUD......Page 64
PROFILE OF FRAUDSTERS......Page 66
WHO IS VICTIMIZED BY FRAUD MOST OFTEN?......Page 70
FRAUD TAXONOMIES......Page 71
FRAUD TREE......Page 79
EVOLUTION OF A TYPICAL FRAUD......Page 82
SUMMARY......Page 85
NOTES......Page 86
INTRODUCTION......Page 88
ACFE FRAUD TREE......Page 90
FINANCIAL STATEMENT SCHEMES......Page 97
CORRUPTION SCHEMES......Page 100
ASSET MISAPPROPRIATION SCHEMES......Page 101
NOTES......Page 111
INTRODUCTION......Page 112
PROFESSIONAL STANDARDS......Page 114
COMMON RED FLAGS......Page 116
SPECIFIC RED FLAGS......Page 118
FRAUD DETECTION MODEL......Page 127
SUMMARY......Page 128
NOTES......Page 129
INTRODUCTION......Page 130
TECHNICAL LITERATURE AND RISK ASSESSMENT......Page 131
RISK ASSESSMENT FACTORS......Page 132
RISK ASSESSMENT BEST PRACTICES......Page 136
RISK MANAGEMENT CHECKLISTS AND DOCUMENTATION......Page 142
NOTES......Page 146
INTRODUCTION......Page 148
PREVENTION ENVIRONMENT......Page 149
PERCEPTION OF DETECTION......Page 152
CLASSIC APPROACHES......Page 154
OTHER PREVENTION MEASURES......Page 156
ACCOUNTING CYCLES......Page 158
NOTES......Page 160
INTRODUCTION......Page 162
COMMON DETECTION METHODS......Page 163
SPECIFIC DETECTION METHODS......Page 166
SUMMARY......Page 172
APPENDIX 7A: BENEISH’S RATIOS......Page 173
FRAUD POLICY......Page 174
FRAUD RESPONSE TEAM......Page 177
RECOVERY......Page 181
SUMMARY......Page 182
NOTES......Page 183
APPENDIX 8A: ACFE SAMPLE FRAUD POLICY......Page 184
APPENDIX 8B: SAMPLE FRAUD POLICY DECISION MATRIX......Page 189
INTRODUCTION......Page 192
HISTORY AND EVOLUTION OF COMPUTER CRIMES......Page 193
COMPUTER CRIME THEORIES AND CATEGORIZATIONS......Page 196
CHARACTERISTICS OF THE COMPUTER ENVIRONMENT......Page 199
INFORMATION SECURITY (INFOSEC)......Page 202
PROFILING INTERNET FRAUDSTERS......Page 203
SUMMARY......Page 209
NOTES......Page 210
INTRODUCTION......Page 212
ACCOUNTING CONCEPTS......Page 213
SEGREGATION OF DUTIES......Page 219
ACCOUNTING INFORMATION SYSTEMS......Page 220
KEY PERSONNEL......Page 221
COMPUTER HARDWARE......Page 225
COMPUTER SOFTWARE......Page 227
AUDIT TRAIL CONCEPT......Page 228
SUMMARY......Page 229
RULES OF EVIDENCE......Page 230
HEARSAY EXCEPTIONS......Page 234
OTHER RULES OF EVIDENCE......Page 235
NOTES......Page 240
INTRODUCTION......Page 242
EXPECTATION OF PRIVACY......Page 243
TYPES OF INVESTIGATIONS......Page 244
SOURCES OF DIGITAL DATA......Page 247
TYPES OF CYBER DATA......Page 248
CYBER FORENSICS INVESTIGATION PROCESS......Page 251
VARIETY OF SPECIALISTS IN CYBER FORENSICS......Page 253
NOTES......Page 254
INTRODUCTION......Page 256
INTERVIEWS......Page 257
BODY LANGUAGE......Page 259
DECEPTION CUES......Page 260
EYE LANGUAGE......Page 261
STATEMENT ANALYSIS......Page 262
SCAN......Page 263
NOTES......Page 264
INTRODUCTION......Page 266
CREDENTIALS......Page 267
PERSONAL QUALITIES OF THE EXPERT......Page 272
SOURCES FOR LOCATING EXPERT WITNESSES......Page 276
SUMMARY......Page 278
NOTES......Page 279
INTRODUCTION......Page 280
ROLE OF A FORENSIC ACCOUNTANT AS A WITNESS IN COURT......Page 281
LEGAL QUALIFICATIONS FOR A FORENSIC ACCOUNTANT AS AN EXPERT WITNESS......Page 286
QUALIFICATION AND ADMISSIBILITY OF ACCOUNTING EVIDENCE......Page 287
PRETESTIMONY ACTIVITIES......Page 289
SUMMARY......Page 290
NOTES......Page 291
APPENDIX 15A: TRANSCRIPT OF TYPICAL COURT TESTIMONY OF EXPERT WITNESS......Page 292
INTRODUCTION......Page 294
BEING A CREDIBLE EXPERT WITNESS......Page 295
EXPERT’S ROLE IN THE LITIGATION TEAM......Page 296
PRETESTIMONY ACTIVITIES......Page 297
TRIAL AND TESTIMONY......Page 298
SURVIVAL TECHNIQUES......Page 305
NOTES......Page 307
HISTORY OF FRAUD AND THE AUDITOR: A SUMMARY......Page 308
FRAUD AND THE AUDITOR’S LIABILITY......Page 319
FRAUD AND THE AUDITOR’S RESPONSIBILITY......Page 320
FRAUD AND THE AUDITOR’S ROLE......Page 323
NOTE......Page 325
About the Authors......Page 328
Index......Page 330