Forensic Accounting and Fraud Examination, 2nd Edition

Glossary

Abuse

Petty crimes committed against organizations, such as excessive lunch hours or breaks, coming to work late or leaving early, using sick time when not sick, and pilfering supplies or products.

Abusive conduct

Counterproductive, fraudulent, or other activities of employees that are detrimental to the organization.

Accidental fraudster

An otherwise “good citizen” who succumbs to a perceived pressure, takes advantage of an opportunity, and is able to rationalize his or her behavior.

Altered payee scheme

A check tampering scheme in which an employee intercepts a company check intended for a third party and alters the payee designation so the check can be converted by the employee or an accomplice.

Anatomical physical responses

Involuntary reactions by the body to stress. They include increased heart rate, shallow or labored breathing, and excessive perspiration. These reactions are typical clues associated with deception.

Attorney–client privilege

A right that precludes disclosure of communications between an attorney and client, but only if the client (1) retained the attorney, (2) did so to obtain legal advice, (3) thereafter communicated with the attorney on a confidential basis, and (4) has not waived the privilege.

Authorized maker scheme

A check tampering scheme in which an employee with signature authority on a company account writes fraudulent checks for his own benefit and signs his own name as the maker.

Benchmark admission

A small admission made to wrongdoing ...