FRAUD 101

Fraud 101, Third Edition will serve as an educational tool for business managers, accountants, auditors, and college students who need to learn about the nature of fraud across various industries. This book creates the awareness that any fraud that is detected usually comprises a relatively small percentage of the fraud universe, and that traditional methods of fraud detection are only minimally effective. Fraud 101, Third Edition provides guidance and new, real-world case studies on the major types of fraud. The Third Edition will be more comprehensive, covering healthcare fraud, Insurance/Banking Fraud, White Collar Crime, Identity Theft Fraud, as well as fraud specific internal controls and corporate governance guidance. 

Preface. Acknowledgments. Introduction. CHAPTER 1 The World of Fraud. Definition of Fraud. The Many Types of Fraud. CHAPTER 2 Why Is Fraud Committed? A Rationalizing Society. Financial Statement Fraud. Financial Fraud Comes in Different Shapes and Sizes. Motivators Differ by Type of Business. Employee Schemes. In the End. CHAPTER 3 Financial Statement Fraud Schemes. Where Do Things Go Wrong? Trend Analysis. Beyond Traditional Audits. CHAPTER 4 Employee Embezzlements. The Fraud Triangle. Areas for Concern. CHAPTER 5 Other Fraud Schemes. Duplicate Payment Fraud. Multiple Payee Fraud. Shell Fraud. Defective Delivery Fraud. Defective Receipt Fraud. Defective Shipment Fraud. Defective Pricing Fraud. CHAPTER 6 Contract Rigging Schemes. Stage One: Obtaining the Contract. Stage Two: Contract Change Orders. Unbalanced Bidding. Detection Recommendations. Rotation Fraud. Where Do We Go from Here? CHAPTER 7 Responses to Fraud. Governments Response to Fraud. Accounting Professions Response to Fraud. Internal Audit Professions Response to Fraud. New Credentials, More Training, Better Awareness. Articles, Books, and More Resources. CHAPTER 8 The Importance of Internal Controls and Internal Audit. Why Have Internal Controls? Deja Vu. Good Internal Controls. Internal Audit. CHAPTER 9 Evidence. What Is Evidence? Documentation. CHAPTER 10 Conducting Fraud Investigations: A Practical Approach. Proactive Fraud Investigations. Discovery Investigations. Supportive Investigations. Strategy. Predication. The Investigative Plan. Conducting the Procedures. Findings. Use of the Findings. CHAPTER 11 Fraud Investigation Alternatives. Assessing the Feasibility of a Full Investigation. Monitoring Operational Areas at Risk of Fraud. Revamping Internal Controls: Closing the Barn Door. Doing Nothing? APPENDIX A Vending Lessons Learned. APPENDIX B Living a Facade Prevention Techniques. APPENDIX C Disappearing Inventory 225 Internal Controls. Index.