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Fraud’s Finer Points: Accounts Receivable Fraud, Part Five: Other Accounting Manipulations This article is for ACFE members only


Fraud’s Finer Points: Case history applications - Accounts Receivable Fraud, Part Five: Eliminating Customer Accounts and Fictitious Account Adjustments This article is for ACFE members only
Here are learning objectives from two types of on-book accounts receivable fraud schemes the author has seen routinely in state and local government.

Interview with Eva Romatzeck. ACFE's European Council on Occupational Fraud and Abuse Takes First Steps
Fraudsters ignore country boundaries. "Fraud is becoming an international crime," says Joseph T. Wells, CFE, CPA, founder and Chairman of the ACFE. "Most Fortune 1000 countries have international subsidiaries, he says. Individual fraud schemes frequently involve the fraud occurring in one country and the proceeds of the crime being hidden in another. Anything that we can do to share information and make laws uniform will help."

Advanced Forensic Financial Analysis, Part One This article is for ACFE members only
To stay ahead of financial statement fraud, fraud examiners must step up to a new level of analytical comprehension and intellect to uncover the latest devious techniques.

Advanced Forensic Financial Analysis, Part Two This article is for ACFE members only
Fraud examiners must hone their financial statement fraud detection methods to overtake the sophisticated crimes of corporate America.

An interview with Marta Andreasen, suspended chief accounting officer of the European Commission - Telling the Truth & Living in Limbo This article is for ACFE members only
Marta Andreasen, the European Commission’s chief accounting officer, awaits her professional fate after declaring the EC’s budget was “mas-sively open to fraud” and endures suspension because of her honesty.

An Unholy Trinity: The Three Ways Employees Embezzle Cash
The three costliest embezzlement schemes, which include larceny of cash, skimming, and fraudulent disbursements, are illustrated in scenarios.

FRAUDBASICS: Ancient Corruption This article is for ACFE members only
This fraudulent practice - older than time - can be summed up simply in two sentences: 'If someone is taking payoffs, then they're doing something they shouldn't officially be doing. Look for what that something is, and you'll find the answer.'

…And Nothing But the Truth: Uncovering Fraudulent Disclosures
Since fraudulent disclosures fall into a number of recognizable patterns, knowing how these schemes work can greatly help the financial statement auditor detect them.

… And One for Me
Skimming is by far the most popular method for stealing an organization’s cash.

Asset Misappropriations: Taking It Personally. This article is for ACFE members only
Tom Westwood could charm the paint off the side of his house. But as the controlling shareholder of a large car dealership he could also find ways to misappropriate company funds to repaint that same house.

Audit Those Vendors This article is for ACFE members only
A vendor can be an entity’s best colleague or worst nemesis. Keep the relationship pleasant and successful by conducting vendor audits.

Avoiding Embezzlement Embarrassment Or Worse This article is for ACFE members only
An entity can lose twice in an embezzlement case. Consider these 10 actions to avoid even more revenue loss during the fraud examination and litigation.

The Barings Bank Case: Image in the Mirror This article is for ACFE members only
The numerous investigations into the current sensational corporate failures will expose many of the same operations control weaknesses that led to the collapse of the Barings Bank of London.

Basic Recipes for Slush Funds: Circumventing Internal Controls Through Slush Concoctions This article is for ACFE members only
In the beginning, the agency managers meant to use the 'unofficial' bank account for good and not for evil, as the comic book super-heroes would say.

Beating fraud through internal auditing: A fraud primer for the new internal auditor This article is for ACFE members only
When new internal auditors are assigned the task of looking for fraud, many find themselves without the necessary skills to do a proper examination. In this session, you'll get an overview of what the new internal auditor needs to know about fraud in his or her first fraud assignments.

Billing Schemes, Part 1: Shell Companies That Don't Deliver
A focus on billing schemes that involve shell companies.

Billing Schemes, Part 2: Pass-Throughs
This article's case study shows auditors and CPAs how to recognize the pass-through billing schemes crooked purchasing agents and others sometimes use to illegally line their pockets.

Billing Schemes, Part 3: Pay-and-Return Invoicing
This article explains the pay-and-return billing scheme, in which an employee creates an overpayment to a vendor and pockets the subsequent refund.

Billing Schemes, Part 4: Personal Purchases
This article's case study shows CPAs the far-reaching consequences of not setting up controls in a business to detect and prevent seemingly immaterial frauds.

CASE IN POINT: Bringing Down the House: Extra Effort Found Roots of Federal Housing Funds Fraud This article is for ACFE members only
Executives at a large housing management firm stole thousands of federal dollars from low-income, rural rental housing projects. An extensive fraud examination found more than the initial investigation.

Built-in Glitches: Controls in Accounts Payable Software not Fraudproof This article is for ACFE members only
We discovered that the internal control functions in some Accounts Payable software packages are far from dependable.

Case in Point: Financial statement fraud. An acquisition in wonderland? This article is for ACFE members only
Just like Alice in her Wonderland, the acquiring company didn't anticipate the tricks of the Mad Hatter and March Hare. But eventually the purchasers discovered the nightmare of an $18-million fraud in the company they had bought.

Check fraud: Separating Money from Worthless Paper
Despite the heavy use of credit cards and online payments, and the redoubled efforts of the FBI and police anti-fraud units, check fraud continues to increase. CFEs can benefit from reviewing the rudiments of check fraud detection and prevention, and the new twists.

CASE IN POINT: Check This Out This article is for ACFE members only
The executive secretary of a local charity was beloved for her hard work and generous nature. Unfortunately, she was working hard to tamper with the organization's checks so she could be generous to herself.

Collaring Crime at Work
This article details the findings of one of the most comprehensive studies into occupational fraud and abuse ever undertaken in the United States, the 1996 Report to the Nation.

Effective solutions for combating employee theft: Combating internal fraud in the banking industry: Page 1 This article is for ACFE members only
Fraud continues to prosper in the banking industry with a variety of fraud schemes. This session will be a practical discussion of fraud schemes that are perpetrated by banking insiders. You'll also learn some of the solutions that your organization can implement to prevent the fraud from occurring.

Effective solutions for combating employee theft: Combating internal fraud in the banking industry: Page 2 This article is for ACFE members only
Fraud continues to prosper in the banking industry with a variety of fraud schemes. This session will be a practical discussion of fraud schemes that are perpetrated by banking insiders. You'll also learn some of the solutions that your organization can implement to prevent the fraud from occurring.

Conducting international investigations: Issues & Solutions This article is for ACFE members only
As corporate entities become more global, so will investigations. However, how you conduct investigations in your country may differ widely from investigations in another country. Learn the issues that you need to know in order to protect you from risk as well as solutions to these problems that you are sure to encounter.

Using the law to fight fraud: Conducting kickbank investigations This article is for ACFE members only
Kickback investigations can be difficult. Evidence is hard to find and witnesses are even harder to turn. This session will focus on the investigation and resolution of kickback investigations including looking for the warning signs that you'll most likely come across and evaluating the outside parties making the payments.

Construction Fraud: Beware the ‘Outside Facilitator’ This article is for ACFE members only
Crafty manipulators will use weak employees at construction job sites to defraud companies for many months – long before the home office smells any problems.

Control Cash-Register Thievery
Show your clients the importance of looking above the bottom line.

Practical solutions to current fraud issues: Corporate Identity Theft This article is for ACFE members only
While you may be familiar with the theft of an individual’s identity, corporations are also susceptible to this costly crime. This session will discuss the various types of impersonations that are being used and suggested ways to protect the corporation through detection and prevention.

Corruption and Fraud Stunt Third-world Growth This article is for ACFE members only
Corrupt officials burden developing countries with unfinished projects and crushing debt - conditions that lead to economic decline and international terrorism.

Corruption and Fraud Stunt Third-world Growth, Part Two This article is for ACFE members only
Corrupt officials burden developing countries with unfinished projects and crushing debt - conditions that lead to economic decline and international terrorism.

Corruption: Causes and Cures
Auditors can help detect and deter bribery and kickbacks.

Corruption in Collegiate Sports
Internal audit departments are challenged by the deep pockets and often unbridled power of big-time college athletic departments.

Cracked Foundation: Corruption in Public Construction This article is for ACFE members only
This project manager for a public construction agency had earned its trust but had stolen its dollars – thousands of them. Learn how he did it and how the agency reformed.

Effective solutions for combating employee theft: Creative employee theft schemes & how to detect them This article is for ACFE members only
Just when you think that you've seen every way an employee can steal from you, a new one comes along. Employees are always coming up with creative ways of making you part with your money. In this session you'll learn some of these ways and especially how you can detect them, the first step in stopping them.

Detecting Fraud in the Data, Part One This article is for ACFE members only
Automatic intervention detection – an advanced computer-based tool – can be used to distinguish companies with fraudulent data from those with no indication of fraudulent reports.

Detecting Fraud in the Data Using AID, Part Two This article is for ACFE members only
In Part One, we examined the basics of automatic intervention detection – an advanced computer-based tool. Here we describe the methodology of a research study conducted to explore the effectiveness of AID.

Fraud prevention: the latest techniques. Developing and auditing loss prevention policies and procedures, Part 1 This article is for ACFE members only
Sweeping changes continue to reshape the workplace. The role of the loss prevention director has found his role dramatically changing from the primary role of protecting the organization's assets. This session provides an in-depth look at the essential elements of developing an effective loss prevention program. Also discussed will be guidance in auditing policies and procedures.

Fraud prevention: the latest techniques. Developing and auditing loss prevention policies and procedures, Part 2 This article is for ACFE members only
Sweeping changes continue to reshape the workplace. The role of the loss prevention director has found his role dramatically changing from the primary role of protecting the organization's assets. This session provides an in-depth look at the essential elements of developing an effective loss prevention program. Also discussed will be guidance in auditing policies and procedures.

Don't Get Burned by Smiling CEO Candidates This article is for ACFE members only
Applicants for top executive positions may have impressive résumés and reputations but extensive background investigations may uncover hidden, illegal activities that can hinder or destroy the organization.

Draw Me a Diagram: Finding Fraud with the ‘ Common-size Diagram’ This article is for ACFE members only
Use this simple tool to discover anomalies on both sides of the balance sheet.

Earnings Management: When does Juggling the Numbers Become Fraud?
Earnings management becomes fraud when companies intentionally provide materially misstated information.

Earnings Management Revisited: Further Suggestions in the Wake of Corporate Meltdowns
Here we provide an update on earnings management, including the implications of the U.S. Sarbanes-Oxley Act of 2002, and offer suggestions for improving performance reporting in all countries.

Easy Come, Easy Go: Examining Fraud on the Loading Dock This article is for ACFE members only
The functions that take place on loading docks are as varied as the businesses themselves, but the one thing common to all docks is their vulnerability to fraudulent activity.

Enemies Within
In a study of 2,608 cases of occupational fraud and abuse, we learned that asset misappropriation can be subdivided into specific types.

Ethics or Employment? How One Accountant Chose Morals over Money This article is for ACFE members only
My surprise first encounter with fraud began with a search to find a better job. It ended with losing my new position, but keeping my integrity and CPA license intact.

Extortion by computer and internet: Cyber extortion detection and prevention This article is for ACFE members only
Extortion isn't new. But cyber criminals are taking advantage of high-tech developments to squeeze money out of individuals and organizations. Learn how to prevent a variety of threats and the steps to take if your entity is hit.

FBI Combats Financial Fraud with CFEs This article is for ACFE members only
Brian Lamkin, chief of the FBI's Financial Crimes Section, directs his team of agents and analysts to tackle fraud while working toward additional recognition for CFEs.

Fear Not The Software: Fourth Quarter Revenue Trending: Customer dimension for financial statement fraud testing This article is for ACFE members only
As the 2005 year-end approaches, fraud examiners need to remember the impact of revenue mistatements. While financial statement fraud only represents 7.9 percent of the number of fraud cases (per the ACFE's 2004 Report to the Nation), in dollar terms the median loss is $1 million per incident. Of these misstatements, fictitious and improperly timed sales are popular favorites as many company health stats are based on their ability to maintain and grow revenue.

FRAUDBASICS: Financial Statement Fraud, Part One This article is for ACFE members only
Financial statement fraud usually involves overstating assets, revenues and profits and understating liabilities, expenses and losses.

FRAUDBASICS: Financial Statement Fraud, Part Two This article is for ACFE members only
Fictitious revenues and timing differences are two of five classifications of common financial statement schemes.

A Fistful of Dollars
The best fraud prevention efforts will concentrate on increasing an employee's perception of being caught.

Follow Fraud to the Likely Perp
It is important to understand both the methods and motivations at play when otherwise ethical executives participate in fraudulent financial statement schemes.

Fighting fraud with technology: Following the cash This article is for ACFE members only
While there are many fraud schemes that fraudsters perpetrate, most involve, in some way, cash. Cash is embezzled, commingled, moved, and spent. Following the cash and proving the fraud can be a difficult task for all but the most experienced. In this session, you'll learn how to follow the cash money trail, and how to recover it in spite of the many hurdles, some new that you'll have to jump.

Fool Me Once, Fool Me Twice This article is for ACFE members only
Two collection agencies - which bought delinquent credit card and other bank debt - raised millions based upon misrepresented collection histories and the misapplication of GAAP.

Formulas for detection: Analysis ratios for detecting financial statement fraud
Messod Daniel Beneish, Ph.D., Indiana University accounting professor, has devised analysis ratios for identifying possible financial statement frauds.

Fraud Edge: A FORUM FOR FRAUD-FIGHTING FACULTY IN HIGHER ED This article is for ACFE members only
I've always been very proud of the profession I chose, but that pride has been tested several times in the past few years since the Enron scandal with Andersen's complicity. After the Enron debacle, I received cartoon clippings from my friends and colleagues for what seemed like an eternity poking fun at the integrity, or lack thereof, of those in the accounting profession.

Protecting the public interest: Fraud in the government, Lessons learned while building an investigative procurement fraud detection program This article is for ACFE members only
It’s a fraud that affects both the public and private sector — procurement fraud. It’s also a fraud that is difficult to detect. In this session, you’ll learn how to build a proactive investigative procurement fraud detection program and how to avoid making some mistakes that could be costly and program counter-productive. Also discussed will be procurement fraud risk analysis, financial system data-mining, and the need for procurement fraud referrals.

Protecting the public interest: Fraud in the government: Stealing from the court, a case study This article is for ACFE members only
The analysis of any employee embezzlement fraud case study begins with the basics – the who, what, when, where, and how.

Fraud Edge: Cleaning our Own House. De-frauding the halls of academe
As Certified Fraud Examiners, we learn that three factors, collectively referred to as the Fraud Triangle, may portend fraudulent behavior. According to the late Donald Cressey, when pressures/incentives, opportunity, and rationalization converge, the environment is ripe for fraud. Although many may presuppose that academe is above such behavior, history has shown otherwise. All types of organizations are susceptible to fraud - even colleges and universities.

Fraud Edge: Fraud examination in the classroom: A CFE's experience as a professor This article is for ACFE members only
We've all heard the cliché, "the grass is always greener..." Well, I've found that one sure way to appreciate another person, is to try to do their job. Sergeant Jay J. Leiner, MAOM, CFE, of the Broward Sheriff's Office Economic Crime Unit in Fort Lauderdale, Fla., did just that. Following is an account of his experience in the classroom, from a practitioner's perspective.

Fraud Basics / Part One: Intro to asset misappropriations for non-accountants: The stolen guitar and other assets This article is for ACFE members only
This first part of a short primer on asset misappropriations begins with some definitions and the basics of an entity's accounting.

Fraud Forum Results This article is for ACFE members only
The Association is proud to announce the results of the first-ever Occupational Fraud Forum.

Fraud's Finer Points: Case History Applications This article is for ACFE members only
I'm closing our discussion about accounts receivable fraud with this column by unveiling some of the more creative methods fraud perpetrators use to steal money from the organization. We'll also examine some learning objectives from the final type of on-book accounts receivable fraud scheme I see routinely in state and local government.

Fraud's Finer Points: Case History Applications. Cash Larceny, Part One. No fixed responsibility losses This article is for ACFE members only
With this column, we begin a new series about cash larceny - on-book frauds in which employees steal the organization's revenue after accountability for the funds has been recorded in the accounting records.

Fraud's Finer Points: Cash Larceny, Part Two: Internal Controls at Decentralized Locations This article is for ACFE members only
In the previous column, we discussed the issue of no fixed responsibility when losses of funds occurred. We continue the topic by reviewing internal controls at decentralized locations within the entity. When cash receipting losses occur, sometimes there's fixed responsibility and sometimes there isn't. Let's explore why this condition occurs by studying two fraud case studies.

Fraud's Finer Points: Cash larceny part four: Alteration of manual cash receipt forms This article is for ACFE members only
Unscrupulous cashiers often alter manual cash receipt forms for customer payments to misappropriate funds from the entity. These manual cash receipt forms usually come in a book with three or more receipts to a page.

From The PRESIDENT This article is for ACFE members only
Sentinels should be highly valued and respected but they’re often branded as disgruntled employees by managers eager to discredit their allegations. Marta Andreasen, a sentinel at the European Commission, has paid a high price for reporting weak or missing internal controls.

From Sutherland to SOX: the Saga continues. A short history of fraud-fighting studies and laws This article is for ACFE members only
This bird's-eye view of five corporate crime studies in the last 50 years may help predict the future of fraud-fighting efforts in the post-SOX era.

Get Corporate Crooks on the Straight-and-Narrow
Legislation mandating executive transparency can go a long way toward preventing fraud.

Ghost Employees This article is for ACFE members only
Managers have the authority (but not the license!) to issue paychecks to fictitious employees or real persons who have ghostly appearances.

Ghost Goods: How to Spot Phantom Inventory
Inventory overstatements make up the majority of asset valuation frauds and are the focus of this article.

Global Risks Reduced: International Business Doesn’t Have to Be Risky This article is for ACFE members only
Being aware of and prepared for issues like personal safety, office supply needs, technology, and language barriers will help you adapt more smoothly to a foreign environment. Even more important is understanding the business culture of the country you’

Protecting the public interest: Fraud in government. Grant/Contract fraud in the public sector This article is for ACFE members only
Not all fraud involves the theft of assets, but rather some involve the misuse of assets. Every year, Federal, State and Local Governments award thousands of dollars in grant/contracts to vendors. However, the grant money is not always prudently managed. This session focuses on the ways and manner in which government grants are misapplied or misused, oftentimes to the benefit of the program administrator.

Preventing and detecting financial statement fraud: Identifying fraudulent financial transactions This article is for ACFE members only
One of the most difficult tasks that an auditor has is to identify fraudulent transactions. In this session you'll not only learn what the schemes are, but develop a framework for detecting fraud. Of particular emphasis is a type of financial statement fraud that is not often discussed - inadequate disclosures. You'll get tips for finding the frauds but also how to prevent the fraud.

Protecting the public interest: Fraud in the government. Identifying and investigating financial reporting fraud of non-profit entities This article is for ACFE members only
Non-profit organizations may have different financial objectives, but when it comes to fraud, they are not immune. In this session, you'll learn the many methods of fraudulent financial reporting and the motives behind each. Also discussed will be how to investigate non-profit organizations and how to detect fraud.

Effective solutions for combating employee theft. Ignoring indicators equals fraud: a case study This article is for ACFE members only
Financial statement audit failures contribute to the untimely discovery and prevention of fraud. How and why does this happen? The appropriate use of Generally Accepted Auditing Standards can identify fraud risk resulting in deterrence and discovery. In this session, GAAS will be discussed and common deficiencies in work will be highlighted together with the disastrous fraud schemes that were discovered too late.

Effective solutions for combating employee theft: Implementing and managing a fraud hotline This article is for ACFE members only
One of the most common methods for detecting fraud is by a tip from an employee, customer, vendor, or an anonymous source. This session will focus on the benefits of utilizing a fraud hotline as well as what should be reported, and how to develop effective procedures for recording, reporting, and tracking hotline information.

FRAUDBASICS: Interviewing the Big Dogs This article is for ACFE members only
In fraudulent financial statement cases, the fraud examiner must competently interview the CEO and CFO for one reason - they probably committed the crime.

Inventory & Vendor Fraud. Spotting Inflated Inventory This article is for ACFE members only
When someone is cooking the books, one of the areas taken advantage of is in the inventory account. After all, inflating the inventory numbers is just a journal entry away. However, there are techniques that the fraud examiner uses to spot them. Learn how.

Investment-bond Fraud: Smiling Faces Asking for Your Retirement Money This article is for ACFE members only
David Namer had the perfect place for your retirement money: mid-yield corporate bonds – Private Placement Memorandums – backed by insurance from a top-rated company. It was perfect until the pyramid collapsed. Learn how this convicted former banker took thousands of small investors for almost $35 million.

Irrational Ratios
By standing far enough back from the numbers to get a good picture of the client's business, auditors frequently can detect signs of financial statement frauds.

CASE IN POINT: Italy’s Parmalat Milking - Investors Through Financial Statement Fraud This article is for ACFE members only
Parmalat – a milk-and-cookies conglomerate – seemed at first glance to be above suspicion. But the firm began to implode when the Italian regulatory commission began its investigation, a Parmalat bank account supposedly holding 3.9 billion Euros was found to be fictitious, and Parmalat fired its two chief auditing companies. This one will last for years.

Keep Ghosts Off the Payroll
Strong internal controls and well-trained, attentive auditors can prevent phony-employee schemes.

Lapping It Up
Lapping is the fraudster's version of robbing-Peter-to-pay-Paul skimming.

Using the law to fight fraud: Legal and practical issues related to fraud examinations This article is for ACFE members only
In every fraud examination, inevitably, legal issues will find their way into your case and usually at the worst possible time. In this session you'll learn some of the legal issues that you might come across in a fraud examination, and more importantly, how to resolve them before they become a serious problem.

Let Them Know Someone’s Watching
Those who perceive they will be caught engaging in fraud are less likely to commit it.

FRAUDBASICS: The Many Faces of Fraud
A review of the legal definitions of the principal types of fraud will help sharpen our focus in searching for white-collar criminals.

FRAUDBASICS: The Many Faces of Fraud, Part Two
This article reviews the concepts of conflicts of interest, theft of money or property, theft of trade secrets or intellectual property, and breach of fiduciary duty.

Merger and Acquisition Fever: The Expanding Role of Fraud Examiners in the Booming Acquisition Market This article is for ACFE members only
By applying their forensic accounting, analytical, and legal skills, fraud examiners can help clients identify potential issues before they commit to purchase a company, preventing unfortunate surprises after the deal has closed.

Modern-day Horseplay: Trojan Horse Fraud This article is for ACFE members only
Don't let Trojan horse fraud buck your company's financial future.

Money Laundering: Ring Around the White Collar
In money laundering the fraudster disguises the existence, nature, source, ownership, location and disposition of property derived from criminal activity.

New Approaches for Fraud Deterrence
This article should provoke thought and debate among CPAs on how we might consider different approaches in the way audits are conducted in order to give the public what it really wants: business enterprises with integrity.

No Confession, No Evidence, No Case? This article is for ACFE members only
Fraud examiners often have to use time-honored techniques to parse the words of alleged fraudsters during an interrogation. But sometimes the absence of a suspect's deception can help make the case.

Nonprofit Fraud: When the Bottom Line is Not the Bottom Line This article is for ACFE members only
Because nonprofit financial reporting fraud often looks quite different than it does in the for-profit world, so should the methods for finding it.

Occupational Fraud: The Audit as Deterrent
From actual case studies taken from the Report to the Nation, auditors and their clients will learn the methods used by employees and insiders to commit occupational fraud and what can be done to better detect and deter these offenses.

Developing your fraud examination skills: Online investigative resources & techniques This article is for ACFE members only
Financial statement audit failures contribute to the untimely discovery and prevention of fraud. How and why does this happen? The appropriate use of Generally Accepted Auditing Standards can identify fraud risk resulting in deterrence and discovery. In this session, GAAS will be discussed and common deficiencies in work will be highlighted together with the disastrous fraud schemes that were discovered too late.

The Padding That Hurts
Auditors cannot ignore expense account cheating by management.

Padding the Numbers This article is for ACFE members only
Retail store managers occasionally manipulate inventory systems to increase their year-end bonuses and preserve their jobs.

Perils in Purchasing: Fraudulent Activities by a Telecoms Manager This article is for ACFE members only
In procuring the upgraded parts and accessories, Williams initially used about seven reputable telecoms vendors. However, as time went on, only one vendor seemed to meet Williams’ requirements.

Pilfering in the Pews: What One Cagey Church Treasurer Taught Me This article is for ACFE members only
When the offering plate is passed in church on Sundays, most of us assume that our donations are going to be spent wisely.

Practical solutions to current fraud issues: Producing electronic evidence This article is for ACFE members only
In recent financial statement scandals, much of the publicity centered around shredded documents and deleted e-mails. While this might not be a common occurrence, nevertheless, if this happened in your organization, what would you do? Learn how you might handle this situation if you are confronted with situation as well as some good tips on protecting information that might make a difference in litigation.

Preventing, Deterring and Detecting Fraud: What Works and What Doesn't This article is for ACFE members only


Preventing and detecting financial statement fraud: Investigation alter ego companies This article is for ACFE members only
Scams involving alter ego companies include diverting assets, hiding income and ownership, are common in bankruptcy fraud, organized crime, tax evasion, and employee embezzlements. This session will focus on discussing how to tie companies together to prove that they are, in fact, one company. Learn how.

Fraud prevention: The latest techniques. Proactive fraud risk reviews: Page 1 This article is for ACFE members only
In order to combat the modern day fraudster, you need to stay one step ahead of the game. Management must realize that they are not immune to fraud and abuse and must be willing to root out the causes and address their concerns head on. To be successful in the fight against fraud you need a game plan that addresses all opportunities for fraud and abuse and details a plan of action. Learn what the best practices are and what you can use to perform a fraud risk review within your organization.

Fraud prevention: The latest techniques. Proactive fraud risk reviews: Page 2 This article is for ACFE members only
In order to combat the modern day fraudster, you need to stay one step ahead of the game. Management must realize that they are not immune to fraud and abuse and must be willing to root out the causes and address their concerns head on. To be successful in the fight against fraud you need a game plan that addresses all opportunities for fraud and abuse and details a plan of action. Learn what the best practices are and what you can use to perform a fraud risk review within your organization.

Promotional Funds Fraud: The Hidden Multi-million Dollar Scam This article is for ACFE members only
Promotional funds fraud is the embezzlement of hundreds of millions of dollars annually from the promotional budgets of consumer product manufacturers.

Protect Small Business
Small businesses - Especially those that do not have regular audits - have every reason to worry about fraud.

Protecting the Public Interests: Mismanagement of Government Grant and Contract Funds This article is for ACFE members only
Fraud, waste, abuse, and mismanagement of government contract and contract funds will never be eliminated. But frequent, modest proactive audits and reviews that focus on fraud indicators will help identify and prevent misuse before the funds are expended.

Restaurant Skimming: Taking a little cream off the top This article is for ACFE members only
With a little cash register magic, restaurant employees and owners can slyly skim receipts and decrease taxes. Here's how to catch them at their game.

Revenue Inflation and Deflation: Detecting Fictitious Revenues in Financial Statements This article is for ACFE members only
Intentional misstatement of revenues became the fashionable fraud in 2002. But the crime existed long before WorldCom and Enron. In 1999 alone, more than half of the Security and Exchange Commission's (SEC) fraud cases involved falsifying revenue.

Rules for the Written Record
Documenting the case is every bit as important as investigating it. This article looks at how to record the results so end users receive the information they need and, equally essential, the report stands up in court.

Sarbanes-Oxley Act This article is for ACFE members only
The Sarbanes-Oxley Act, spawned from huge corporate collapses, will not make fraud disappear. But its strong language and stiff penalties could deter some executives tempted to stray.

Preventing and detecting financial statement fraud: Sarbanes-Oxley Update This article is for ACFE members only
When Sarbanes-Oxley was passed, it had a profound effect on CPA's everywhere. Now that it has had a chance to settle in, has it had the impact that was intended by its passage? Get an update on what has happened in the last year and what is expected to come in the future years. You'll also learn the potential opportunities available for your practice and the pitfalls for your clients.

SAS 99: Another Implement for the Fraud Examiner’s Toolbox This article is for ACFE members only
SAS 99 not only requires auditors to be reasonably sure that financial statements are free of material misstatements, whether caused by error or fraud, but it gives them focused and clarified guidance on meeting their responsibilities to uncover fraud.

Fraud's Finer Points: Case History Applications. Skimming revenue, part one: The highest-risk employee This article is for ACFE members only
After a lengthy discussion of accounts receivable fraud, it's time to focus our attention on other prime areas where fraudsters abuse the systems of internal control to raid organizations' treasuries for their own personal benefit. With this column, we begin a journey through the many facets of cash receipting and types of fraud that occur in every organization. Our first step involves skimming: removing funds prior to recording accountable transactions in the accounting system.

Fraud's Finer Points: Skimming revenue, Part Two. Laundering stolen checks This article is for ACFE members only
Skimming frauds are perpetrated by employees who remove funds from the organization prior to recording accountability for the transaction in the accounting system. This column continues the discussion on employees stealing checks from the organization.

Fraud's Finer Points: Skimming revenue, part three: Stealing cash payments from customers This article is for ACFE members only
In the past two columns, we've discussed many methods fraud perpetrators use to steal checks from the organization and then convert them for personal benefit. Employees perpetrate these skimming frauds by removing funds from the organization prior to recording accountability for the transactions in the accounting system. Here we'll discuss some of the methods employees use to skim funds by stealing customer payments made in cash.

So That’s Why It’s Called a PYRAMID SCHEME
Fraud comes in many shapes and sizes—and it’s growing faster than ever.

Soft Dollar Fraud: Diversion of Funds from a Directed Brokerage Account This article is for ACFE members only
Soft dollars also exist in the business world. Examples include free tickets awarded through airlines’ frequent flier programs, points given by medical device suppliers toward free training programs in exotic locations or on cruise ships to healthcare pro

The Sophomore Slump: Improving Internal Controls in Small Businesses Once They Succeed This article is for ACFE members only
The real difficulty that anti-fraud professionals face in small businesses once they succeed isn't designing or implementing financial controls but convincing owners to make the necessary investments and give up sufficient authority to allow the controls to work.

Starting Out: For and About Fraud-Fighting Students in Higher-Ed This article is for ACFE members only
Who learns more, the teacher or the student? The answer to this question is irrelevant in today's world since each of us needs to be CONTINUALLY learning as a student and sharing our knowledge as a teacher. In this column we get to access the knowledge of the best and brightest who are entering the fraud profession.

Starting out: Students: This Column is for You! This article is for ACFE members only


The Suspense Could Kill You: Fraud Committed Through General Ledger Suspense Accounts This article is for ACFE members only
Devise a logical examination process to find fraud committed through general ledger suspense accounts.

Timing is of the Essence
When companies get desperate to show earnings or reduce losses, sometimes they resort to fraudulent timing differences to show phony profits.

Tracking Troublesome Travelers: Preventing Travel Fraudsters from Flying into the Sunset This article is for ACFE members only
Let’s review how fraud examiners can inspect air travel records to find incriminating evidence that can help nail flying fraudsters.

Traveling the World in Style on the Company's Nickel This article is for ACFE members only
Don't ignore travel and entertainment expense reporting records. Small infractions can add up to thousands in losses and lead to greater frauds.

FraudBasics: When Employees GO BAD. Conducting internal investigations, part one. This article is for ACFE members only
This FraudBasics article is adapted from part of the ACFE course, "Conducting Internal Investigations." For more information on this and other courses, visit CFEnet.com/events/seminars.asp.

When Employees Count Too Much: Spotting Overstated Inventory This article is for ACFE members only
Because inventory fraud is often more difficult to prevent and detect than other asset thefts, fraud examiners need to understand the mechanics of inventory accounting and the signs of overstated inventory schemes.

The Whole, Not the Parts This article is for ACFE members only
Outcome-oriented fraud auditing - looking at a situation as a whole rather than its individual parts - will help you think like a fraudster and find deeply embedded crimes.

Who’s in Control Here? Anatomy of a Bank Infrastructure’s Failure This article is for ACFE members only
A bank can have the most airtight internal control structure imaginable, but if senior management sends out signals that some people in the organization are above these rules, major frauds can result.

“Why Ask?” You Ask
A vital part of discovering fraud concerns the auditor's ability to ask questions and the implications of not asking them. Since most auditors have had no formal interview training, this article focuses on the basics: how to approach the fraud issue with

Why Employees Commit Fraud
It is important for CPAs to understand what motivates people to commit fraud so they can better assess risk and assist employers or clients in implementing appropriate preventive and detective measures.

Preventing and detecting financial statement fraud: Worldcom bankruptcy: A fraud examiner's perspective This article is for ACFE members only
The WorldCom scandal has taught the financial world many things. It's also a classic study of what not to do in the corporate world when it comes to financial records and how to avoid disaster. In this session you'll learn about WorldCom's bankruptcy and how fraud fits in the picture. It wasn't pretty, but there are many lessons that can be learned to help prevent this from happening again.

The World’s Dumbest Fraudsters
I've searched high and low to bring you examples of the dumbest of the dumbsters. And I admit it up front: The only lesson to be learned is just how stupid some people can be.

This article is for ACFE members only. Click here for information about membership.

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