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Taming fraud in crypto’s Wild West
The meteoric rise and sudden downfall of crypto exchange FTX, and its founder Sam Bankman-Fried, is likely to become an essential case study for fraud examiners seeking to understand the new Wild West of the financial markets. Here we look at what happened and lessons learned from possibly one of the largest U.S. financial frauds.
Written By: Paul Kilby, CFE
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- Cryptocurrency and Digital Assets
- Financial Statement Fraud
- Fraud Investigation and Examination
- Technology
Fraud infecting commercial-loan agreements
Commercial-loan agreements can pressure borrowers and lenders to cross the line to avoid bankruptcy or fleece customers. Here are some common fraud schemes that desperate parties can use in this cat-and-mouse game.
Written By: Roger W. Stone, CFE, Philip Duffy
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- Financial Statement Fraud
Reflecting on Enron and lessons learned
When I first started teaching fraud at the university level about 20 years ago, I had no idea that I was about to be handed a case study like no other. A few months later the now-infamous accounting scandal at Enron hit the headlines, and the once-celebrated energy firm collapsed in disgrace soon thereafter.
Written By: Bruce Dorris, J.D., CFE, CPA
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- Accounting and Auditing
- Financial Statement Fraud
Twenty years later, could another Enron happen?
On Dec. 2, 2001, Enron declared bankruptcy. Governmental and media investigations led to criminal and civil trials of executives Ken Lay, Jeffrey Skilling, Andrew Fastow and many more. U.S. legislation ensued, but did the collapse of this corporation, which ruined so many lives, engender any lessons?
Written By: Sherron Watkins
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- Corporate Governance
- Financial Statement Fraud
- Whistleblowing and Hotlines
Are well-known companies more prone to financial statement fraud?
It’s logical to think that companies on the verge of bankruptcy or suffering severe financial stress might be tempted to fudge their financial statements. Yet a recent university study says that large prestigious public firms are even more prone to cooking the books. We look at why this might be the case and the need to delve into the psychology of individual perpetrators.
Written By: Paul McCormack, CFE
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- Accounting and Auditing
- Financial Statement Fraud
- Fraud Schemes
Wirecard's house tumbles
Dan McCrum, an investigative reporter for the Financial Times, spent six years questioning the finances of Wirecard, Germany’s moneymaking payments processor. Fraudulent Wirecard would strike back against McCrum and his wife with smear campaigns, lawsuits and surveillance. German banks and regulators targeted him. But his efforts paid off. Read about his crazy, weird investigation.
Written By: Dick Carozza, CFE
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- Financial Statement Fraud
- Fraud Investigation and Examination
- Whistleblowing and Hotlines
Exposing fraud at 'Germany's Enron'
Wirecard was once a fast-rising European fintech company that grew primarily through acquisitions. Now it’s dubbed the “Enron of Germany.”
Written By: Bruce Dorris, J.D., CFE, CPA
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- Financial Statement Fraud
Reimagining audit quality using Wirecard and PCAOB examples
The Wirecard case and recent PCAOB inspection reports on the top six audit firms highlight continued issues with audit quality and the independent auditor’s responsibility in uncovering material misstatements due to fraud. They also emphasize the need for the auditing profession to hasten improvements.
Written By: Chris Dogas, CFE, CPA
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- Accounting and Auditing
- Financial Statement Fraud
The overlooked factor
A business can legitimately sell its outstanding invoices for a percentage of their face value to receive money quickly to expedite cash flow. The process allows nearly $3 trillion in transactions per year worldwide. However, invoice factoring is vulnerable to fraudsters. This case shows red flags and susceptibilities.
Written By:
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- Accounting and Auditing
- Financial Statement Fraud
Why audits fail
A bond of trust joins auditors with all who depend on the accuracy and completeness of their findings. But venal executives, captured regulators and compromised auditors can subvert that bond, betray confidence and dissipate capital. This article offers key insights and best practices to help CFEs — including those who are auditors — expose and mitigate threats to audit reliability.
Written By: Robert Tie, CFE
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- Accounting and Auditing
- Career and Professional Development
- Financial Statement Fraud
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