Data Sleuth: Using Data in Forensic Accounting Engagements and Fraud Investigations(Wiley Corporate F&A)

Straightforward, practical guidance for working fraud examiners and forensic accountants In Data Sleuth: Using Data in Forensic Accounting Engagements and Fraud Investigations, certified fraud examiner, former FBI support employee, private investigator, and certified public accountant Leah Wietholter delivers a step-by-step guide to financial investigation that can be applied to almost any forensic accounting use-case. The book emphasizes the use of best evidence as you work through problem-solving data analysis techniques that address the common challenge of imperfect and incomplete information. The accomplished author bridges the gap between modern fraud investigation theory and practical applications and processes necessary for working practitioners. She also provides: Access to a complimentary website with supplementary resources, including a Fraud Detection Worksheet and case planning template Strategies for systematically applying the Data Sleuth® framework to streamline and grow your practice Methods and techniques to improve the quality of your work product Data Sleuth is an indispensable, hands-on resource for practicing and aspiring fraud examiners and investigators, accountants, and auditors. It’s a one-of-a-kind book that puts a practical blueprint to effective financial investigation in the palm of your hand.

Table of Contents:
Foreword xi Preface xv Acknowledgments xix Chapter 1: Building a Data Sleuth Team 1 The First Team 2 The Forensic Accountant 4 Technical and Strategic 4 Thorough and Efficient 5 Detail-Oriented and Effective Communication 6 Accounting Knowledge and Legal Knowledge 7 Meeting Deadlines and Developing Business 8 Forensic Accountant Problems 8 The Scalability Problem 9 The Strategy Problem 10 The Review Problem 12 The Sustainability Problem 13 Data Sleuth Solutions 14 The Scalability Solution 14 The Strategy Solution 16 The Review Solution 18 The Sustainability Solution 18 Chapter 2: The Data Sleuth Process 21 Engagement Types 21 Simultaneously Managing Client Expectations and Objectivity 25 Professional Standards 28 The Data Sleuth Process 30 Chapter 3: The Data Sleuth Necessity 41 Forensic Accounting Engagements versus External Financial Statement Audits 42 The Evolution of Forensic Accounting 44 The Case of the Cash Back Payroll Scheme 45 Start with the Evidence, Not the Scheme 47 The Case of the Gambling Executive Director 48 Chapter 4: Data Sleuth Considerations 53 Investigations Affect Real People 54 The Case of the Nonexistent Inventory 55 The Fraud Formula 58 Staying on Task with Purpose in Mind 59 The Investigation Decision Tree for a Data Sleuth 60 Recovery Avenues 63 The Case of the Man Cave 66 Chapter 5: Client Communication and Involvement 71 The Case of the Initial Client Meeting 72 Client Expectations 75 Data Procurement 77 Client Involvement During an Investigation 78 Ongoing Client Communication 81 Chapter 6: The Data Sleuth Case Plan 83 The Data Sleuth Process 83 The Client’s Investigation Priorities 86 Evaluate the Subject’s Access through Risk-Based Analysis 86 Data Sleuth Analysis Framework 88 From Conceptual Venn Diagram to Comparative Data Analysis 96 The Data Analysis Plan 97 Data and Information Gathering 99 Communication of the Case Plan 101 The Case of the Duplicate Payroll – Conclusion 102 Chapter 7: Risk-Based Analysis 105 The Case of the Puzzling Entries 106 Risk Focus in Audits versus Risk Focus in Investigations 118 The Case of the Mom of the Year 118 Evaluating Risk in Divorce Cases and Estate and Trust Disputes 126 Chapter 8: Data Sources and Data Processing Techniques 129 Data Sources Explained 129 Quantitative and Qualitative Data Sources 130 Data Sources for Quantitative Evidence 130 Data Sources for Qualitative Evidence 134 Using Quantitative and Qualitative Data Sources 135 Data Processing Techniques 136 Relevant Period 136 Getting Organized Before Beginning Data Processing 139 Considerations Before Processing Data 144 Account Scheduling Steps 145 Formatting Account Schedules and Normalizing Payees 149 Chapter 9: Standard Data Sleuth Analyses: Comparative Analysis and Source and Use Summaries 151 Comparative Analysis 152 The Case of the Cash Flow Fiasco 153 Source and Use Summary and Analysis 156 Bank Account Source and Use Analysis 157 Credit Card Account Source and Use Summary 164 Chapter 10: Standard Data Sleuth Analyses: Interesting Data Findings, Risk Indicator Analysis, and Payroll Analysis 169 Interesting Data Findings 170 Risk Indicator Analysis 175 Payroll Analysis 180 Overpayments of Payroll 189 Chapter 11: Findings, Reports, and Testimony 193 Findings 193 Reports 196 A Report for Criminal Charges 197 Report Recommendations for Law Enforcement Referral 199 An Expert Report for Civil Litigation 200 An Expert Report for Insurance Reimbursement 201 Report Organization Recommendations 202 Testimony 203 Chapter 12: Practice the Data Sleuth Process 207 Review of the Data Sleuth Case Plan 207 Review of Data Sleuth Data Processing 208 Review of the Data Analysis Plan and Standard Data Sleuth Analyses 208 Case Study 1: The Case of the Disappearing Business 209 Case Study 2: The Case of the Sneaky CFO 213 Chapter 13: The Cases that Went Wrong 219 The Client Who Believes He Was Wronged 219 The Client Whose Decisions Affect an Investigation 225 Chapter 14: Data Sleuth Expansion 231 Data Sleuth Empowers the Curious 232 Data Sleuth Divisions 234 Public Accounting Firms 235 Consulting and Advisory Firms 236 The Case of the Phony Professional 237 Law Firms 239 Law Enforcement 240 The Future of Data Sleuth 240 Data Sleuth as Prevention 240 Licenses, Credentials, and Professional Development 241 Appendix: Case Study Exercise Solution Recommendations 243 Case Study 1: Exercise 1 – Solution Recommendations 243 Case Study 2: Exercise 1 – Solution Recommendations 244 Case Study 2: Exercise 2 – Solution Recommendations 246 About the Author 249 About the Website 251 Index 253

About the Author :
Leah Wietholter is a Certified Fraud Examiner, private investigator, Certified Public Accountant, and CEO of Workman Forensics in Tulsa, Oklahoma. She previously worked with the Federal Bureau of Investigation and as a Senior Certified Fraud Examiner at a public accounting firm in Tulsa. She runs The Investigation Game, an interactive continuing education experience and podcast that explores financial investigation strategies.