Detecting Fraud in Organizations – Techniques, Tools, and Resources

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.

Table of Contents:
Preface Acknowledgments Introduction The 800-Pound Friendly Gorilla Numbers Don't Lie, People Do An Overview of Fraud This Book's One Minute Fraud Mysteries A Few Tips for Detecting Fraud as You Begin This Book's Setup Chapter 1 Understanding Fraud What Is Fraud and Why Does It Continue to Happen? People Are Greedy - How Greedy Are You? One Minute Fraud Mystery: Trust Us, Inc. Distinguishing between Deterrence, Prevention, and Detection Increased Risk of Fraud Loss Divergent and Convergent Thinking Critical Thinking Requires Critical Questions Personality Traits of the Fraudster The Moral Compass MIRD (Misrepresentations, Intent, Reliance, Damages) Confusion about Responsibility Complexity Summary One Minute Fraud Mystery Analysis Chapter 2 Fraud Detection Approaches Why Doesn't Enhanced Legislative, Regulatory, and Professional Oversight Help to Prevent Fraud? One Minute Fraud Mystery: Big Fish Investment, Inc. Principles and Rules Alone Cannot Exterminate All Fraud Getting a Handle on Transactions The 10 Forensically Accepted Generally Accepted Accounting Principle Assumptions (FAGAAPAs) No No's Summary One Minute Fraud Mystery Analysis Chapter 3 Deciding to Commit Fraud What Is the "Something" that Coerces Folks to Cross the Line? One Minute Fraud Mystery: The House of Worship Do You Really Know What the People in Your Organization Are Thinking? The Four Generations and Motivation Pinpointing the Fraudster The Three Most Prevalent Types of Fraud An Accounting Creed Consequences of Fraud Summary One Minute Fraud Mystery Analysis Chapter 4 How to Act Like a Fraudster To Catch a Fraudster, You Need to Think Like One One Minute Fraud Mystery: Catch Me If You Can Inc. The Six Ps of Successful Fraudsters The Characteristics of a Fraudster Fraudsters & Their Organizations Summary One Minute Fraud Mystery Analysis Chapter 5 The Dynamics of Business Everything Is Related -- From People to Processes to Outside Influences One Minute Fraud Mystery: Accrual, Inc. Control Point Links and Accountability The Layers of Trust Responsibility Chains A Failure in Management More than the Bottom Line Outside Influences Organizational Failures Understanding Cash Flows Summary One Minute Fraud Mystery Analysis Chapter 6 Understanding the Accounting Process One Minute Fraud Mystery: Sneakers Are Us, Inc. Understanding the Sale of Goods Deceptive Data Operating Expenses Balanced Principles Balance Sheet Components Ratio Analysis Building a Case: Document Organization, Data Analysis, and Lifestyle Analysis Summary One Minute Fraud Mystery Analysis Chapter 7 It All Comes Down to Cash One Minute Fraud Mystery: Yankee Handling Cash Cash Disbursements Controls Cash and Fraud Classifications of Cash and Cash Equivalent Fraud Schemes and Scenarios Fraud Control Points in the Organizational Process Summary One Minute Fraud Mystery Analysis Chapter 8 Final Thoughts Handy Tips and Quick Checklists for Reference Finding the Next Potential Fraud Kernel in Your Organization Before it POPs (Perspective + Occupation + Position) Quick References Regarding the Fundamentals of Fraud Generally Accepted Accounting Principles (GAAPs) versus Forensically Accepted Generally Accepted Accounting Principle Assumptions (FAGAAPAs): A Summary Why Auditors/Accountants Fail to Detect Fraud Red Flags Indicating Potential Fraudsters Using Ratios A Simple Fraud Risk Plan Conclusion Bibliography About the Author Index