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Corporate Fraud Handbook, 5th Edition

Book Description

Delve into the mind of a fraudster to beat them at their own game

Corporate Fraud Handbook details the many forms of fraud to help you identify red flags and prevent fraud before it occurs. Written by the founder and chairman of the Association of Certified Fraud Examiners (ACFE), this book provides indispensable guidance for auditors, examiners, managers, and criminal investigators: from asset misappropriation, to corruption, to financial statement fraud, the most common schemes are dissected to show you where to look and what to look for. This new fifth edition includes the all-new statistics from the ACFE 2016 Report to the Nations on Occupational Fraud and Abuse, providing a current look at the impact of and trends in fraud. Real-world case studies submitted to the ACFE by actual fraud examiners show how different scenarios play out in practice, to help you build an effective anti-fraud program within your own organization. This systematic examination into the mind of a fraudster is backed by practical guidance for before, during, and after fraud has been committed; you'll learn how to stop various schemes in their tracks, where to find evidence, and how to quantify financial losses after the fact.

Fraud continues to be a serious problem for businesses and government agencies, and can manifest in myriad ways. This book walks you through detection, prevention, and aftermath to help you shore up your defenses and effectively manage fraud risk.

  • Understand the most common fraud schemes and identify red flags
  • Learn from illustrative case studies submitted by anti-fraud professionals
  • Ensure compliance with Sarbanes-Oxley and other regulations
  • Develop and implement effective anti-fraud measures at multiple levels

Fraud can be committed by anyone at any level—employees, managers, owners, and executives—and no organization is immune. Anti-fraud regulations are continually evolving, but the magnitude of fraud's impact has yet to be fully realized. Corporate Fraud Handbook provides exceptional coverage of schemes and effective defense to help you keep your organization secure.

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. Preface
  6. About the ACFE
  7. Chapter 1: Introduction
    1. Defining Occupational Fraud and Abuse
    2. Research in Occupational Fraud and Abuse
    3. 2016 Report to the Nations on Occupational Fraud and Abuse
    4. Notes
  8. Part I: Asset Misappropriations
    1. Chapter 2: Introduction to Asset Misappropriations
      1. Overview
      2. Definition of Assets
      3. How Asset Misappropriations Affect Books of Account
      4. Notes
    2. Chapter 3: Skimming
      1. Overview
      2. Skimming Data from the ACFE 2015 Global Fraud Survey
      3. Unrecorded Sales
      4. Understated Sales and Receivables
      5. Theft of Checks Through the Mail
      6. Short‐Term Skimming
      7. Converting Stolen Checks
      8. Concealing the Fraud
      9. Detection
      10. Prevention
      11. Notes
    3. Chapter 4: Cash Larceny
      1. Overview
      2. Cash Larceny Data from the ACFE 2015 Global Fraud Survey
      3. Incoming Cash
      4. Cash Larceny from the Deposit
      5. Miscellaneous Larceny Schemes
      6. Detection
      7. Prevention
      8. Note
    4. Chapter 5: Check Tampering
      1. Overview
      2. Check Tampering Data from the ACFE 2015 Global Fraud Survey
      3. Forged Maker Schemes
      4. Intercepted Checks
      5. Forged Endorsement Schemes
      6. Altered Payee Schemes
      7. Concealed Check Schemes
      8. Authorized Maker Schemes
      9. Concealment
      10. Detection
      11. Prevention
      12. Electronic Payment Tampering
      13. Notes
    5. Chapter 6: Register Disbursement Schemes
      1. Overview
      2. Register Disbursement Data from the ACFE 2015 Global Fraud Survey
      3. False Refunds
      4. False Voids
      5. Concealing Register Disbursements
      6. Detection
      7. Prevention
      8. Note
    6. Chapter 7: Billing Schemes
      1. Overview
      2. Billing Scheme Data from the ACFE 2015 Global Fraud Survey
      3. Shell Company Schemes
      4. Non‐Accomplice Vendor Schemes
      5. Personal Purchases with Company Funds
      6. Detection
      7. Prevention
      8. Note
    7. Chapter 8: Payroll and Expense Reimbursement Schemes
      1. Overview
      2. Payroll Scheme Data from the ACFE 2015 Global Fraud Survey
      3. Payroll Schemes
      4. Detection of Payroll Schemes
      5. Prevention of Payroll Schemes
      6. Expense Reimbursement Data from the ACFE 2015 Global Fraud Survey
      7. Expense Reimbursement Schemes
      8. Detection of Expense Reimbursement Schemes
      9. Prevention of Expense Reimbursement Schemes
      10. Note
    8. Chapter 9: Inventory and Other Noncash Assets
      1. Overview: Noncash Misappropriation Data from the ACFE 2015 Global Fraud Survey
      2. Misuse of Inventory and Other Assets
      3. Theft of Inventory and Other Assets
      4. Concealment
      5. Detection
      6. Prevention
      7. Misappropriation of Intangible Assets
      8. Notes
  9. Part II: Corruption
    1. Chapter 10: Bribery
      1. Overview
      2. Corruption Data from the ACFE 2015 Global Fraud Survey
      3. Bribery Schemes
      4. Something of Value
      5. Economic Extortion
      6. Illegal Gratuities
      7. Detection
      8. Prevention
      9. Anti‐Corruption Legislation
      10. Notes
    2. Chapter 11: Conflicts of Interest
      1. Overview
      2. Purchasing Schemes
      3. Sales Schemes
      4. Other Schemes
      5. Detection
      6. Prevention
      7. Note
  10. Part III: Financial Statement Fraud
    1. Chapter 12: Accounting Principles and Fraud
      1. Introduction
      2. Fraud in Financial Statements
      3. Major Generally Accepted Accounting Principles
      4. Responsibility for Financial Statements
      5. Users of Financial Statements
      6. Types of Financial Statements
      7. Sarbanes‐Oxley Act
      8. Financial Statement Fraud Data from the ACFE 2015 Global Fraud Survey
      9. Notes
    2. Chapter 13: Financial Statement Fraud Schemes
      1. Overview
      2. Defining Financial Statement Fraud
      3. Costs of Financial Statement Fraud
      4. Methods of Financial Statement Fraud
      5. Detection of Financial Statement Fraud Schemes
      6. Deterrence of Financial Statement Fraud
      7. Notes
    3. Chapter 14: Occupational Fraud and Abuse: The Big Picture
      1. Defining Abusive Conduct
      2. Measuring the Level of Occupational Fraud and Abuse
      3. Understanding Fraud Deterrence
      4. Corporate Sentencing Guidelines
      5. Ethical Connection
      6. Concluding Thoughts
      7. Notes
  11. Appendix: Sample Code of Business Ethics and Conduct
    1. Introduction
    2. Conflicts of Interest
    3. Company Assets
    4. Political Contributions
    5. Employee Conduct
    6. Compliance Letter and Conflict‐of‐Interest Questionnaire
  12. Bibliography
  13. Index
  14. End User License Agreement