Data Sleuth: Using Data in Forensic Accounting Engagements and Fraud Investigations

Description

Straightforward, practical guidance for working fraud examiners and forensic accountants In Data Sleuth: Using Data in Forensic Accounting Engagements and Fraud Investigations, certified fraud examiner, former FBI support employee, private investigator, and certified public accountant Leah Wietholter delivers a step-by-step guide to financial investigation that can be applied to almost any forensic accounting use-case. The book emphasizes the use of best evidence as you work through problem-solving data analysis techniques that address the common challenge of imperfect and incomplete information. The accomplished author bridges the gap between modern fraud investigation theory and practical applications and processes necessary for working practitioners. She also provides: Access to a complimentary website with supplementary resources, including a Fraud Detection Worksheet and case planning templateStrategies for systematically applying the Data Sleuth® framework to streamline and grow your practiceMethods and techniques to improve the quality of your work product Data Sleuth is an indispensable, hands-on resource for practicing and aspiring fraud examiners and investigators, accountants, and auditors. It’s a one-of-a-kind book that puts a practical blueprint to effective financial investigation in the palm of your hand. Cover Title Page Copyright Page Contents Foreword Preface Acknowledgments Chapter 1 Building a Data Sleuth Team The First Team The Forensic Accountant Technical and Strategic Thorough and Efficient Detail-Oriented and Effective Communication Accounting Knowledge and Legal Knowledge Meeting Deadlines and Developing Business Forensic Accountant Problems The Scalability Problem The Strategy Problem The Review Problem The Sustainability Problem Data Sleuth Solutions The Scalability Solution The Strategy Solution The Review Solution The Sustainability Solution Notes Chapter 2 The Data Sleuth Process Engagement Types The Case of the Reimbursing Controller Data-Driven Results Simultaneously Managing Client Expectations and Objectivity The Case of the Mistaken Divorcee Don’t Be a Hired Gun There Is a Middle Ground The Case of the Sentencing Hearing Professional Standards Professional Standards of Objectivity Conflicts of Interest Objectivity and Investigating Facts The Data Sleuth Process Client Onboarding The Case of the Next-Day Deposition Risk-Based Analysis Case Planning Key Interviews Open-Source Research The Case of the Missing Inventory Data Analysis Other Data Sources and Evidence Subject Interviews Communication of Findings Notes Chapter 3 The Data Sleuth Necessity Forensic Accounting Engagements versus External Financial Statement Audits The Evolution of Forensic Accounting The Case of the Cash Back Payroll Scheme Start with the Evidence, Not the Scheme The Case of the Gambling Executive Director Chapter 4 Data Sleuth Considerations Investigations Affect Real People The Case of the Nonexistent Inventory The Fraud Formula Staying on Task with Purpose in Mind The Investigation Decision Tree for a Data Sleuth Ensure the Allegations Fall Within the Investigator’s Expertise Identify Analysis and Evidence Required to Verify Allegations Verify the Legitimacy of the Allegations Investigate with Client Goals and Possible Recovery Avenues in Mind Recovery Avenues Recovery Avenue: Criminal Prosecution Recovery Avenue: Civil Proceedings Recovery Avenue: Insurance Reimbursement The Case of the Man Cave Notes Chapter 5 Client Communication and Involvement The Case of the Initial Client Meeting Client Inquiry and Initial Meetings Initial Client Meetings Client Expectations Data Procurement Client Involvement During an Investigation Client Feedback The Case of the Overlooked Loss Ongoing Client Communication Chapter 6 The Data Sleuth Case Plan The Data Sleuth Process The Case of the Duplicate Payroll The Client’s Investigation Priorities Evaluate the Subject’s Access through Risk-Based Analysis Data Sleuth Analysis Framework Data Sleuth Analysis Framework Applications Case Example: Estate Dispute Case Example: Embezzlement Case Example: Partnership Dispute Case Example: Divorce Case Example: Economic Damages From Conceptual Venn Diagram to Comparative Data Analysis The Data Analysis Plan Investigation Priority Number 1 Investigation Priority Number 2 Investigation Priority Number 3 Data and Information Gathering Communication of the Case Plan The Case of the Duplicate Payroll – Conclusion Chapter 7 Risk-Based Analysis The Case of the Puzzling Entries Focus on Cash Money In Money Out Accounting Records and Interviews The Benefits of Risk-Based Analysis The Case of the Puzzling Entries – Conclusion Risk Focus in Audits versus Risk Focus in Investigations The Case of the Mom of the Year Consideration of Risk in Fraud Investigations Money In Money Out Case Findings 1 Altered Bank Statements Case Findings 2 The Case of the Mom of the Year – Conclusion Evaluating Risk in Divorce Cases and Estate and Trust Disputes Divorce Cases Estate and Trust Disputes Chapter 8 Data Sources and Data Processing Techniques Data Sources Explained Quantitative and Qualitative Data Sources Data Sources for Quantitative Evidence Standard Data Sources Nonstandard Data Sources Data Sources for Qualitative Evidence Using Quantitative and Qualitative Data Sources Data Processing Techniques Relevant Period Getting Organized Before Beginning Data Processing Considerations Before Processing Data Account Scheduling Steps Formatting Account Schedules and Normalizing Payees Note Chapter 9 Standard Data Sleuth Analyses: Comparative Analysis and Source and Use Summaries Comparative Analysis The Case of the Cash Flow Fiasco Source and Use Summary and Analysis Bank Account Source and Use Analysis Sources (Deposits/Credits) Uses (Expenditures/Debits) How to Use the Bank Account Source and Use Summary Results Credit Card Account Source and Use Summary Sources (Payments/Credits) Uses (Purchases/Advances/Balance Transfers/Other Charges) How to Use the Credit Card Source and Use Summary Results Chapter 10 Standard Data Sleuth Analyses: Interesting Data Findings, Risk Indicator Analysis, and Payroll Analysis Interesting Data Findings Standard IDF Data Analysis Tests Benford’s Analysis Even-Dollar Amounts Large Individual Payments Month-Over-Month Pivot Table Extract Detailed Transactions from Source and Use Summaries Using Accounting Records in the Interesting Data Findings Analysis Create an Interesting Data Findings Summary Risk Indicator Analysis Risk Indicator Analysis Steps Example for Using Risk Indicator Analysis Payroll Analysis Ghost Employees Data Analysis Test: Number of Employees Data Analysis Test: Duplicate Social Security Numbers Data Analysis Test: Employee Records without Addresses Data Analysis Test: Employee Records with Duplicate Addresses Data Analysis Test: Total Risk Indicators and Comparing to Payroll Records The Case of the Limited Payroll Records Overpayments of Payroll Data Analysis Test: Pay Date Review Data Analysis Test: Even-Dollar Payments of Net Pay and Expense Reimbursements Data Analysis Test: Days of the Week Data Analysis Test: Large Individual Payments Data Analysis Test: Number of Payments to Employees Per Month Risk Indicator Analysis and Comparative Analysis The Case of the Overpaid Administrator Notes Chapter 11 Findings, Reports, and Testimony Findings Reports A Report for Criminal Charges Report Recommendations for Law Enforcement Referral An Expert Report for Civil Litigation An Expert Report for Insurance Reimbursement Report Organization Recommendations Testimony Notes Chapter 12 Practice the Data Sleuth Process Review of the Data Sleuth Case Plan Review of Data Sleuth Data Processing Review of the Data Analysis Plan and Standard Data Sleuth Analyses Case Study 1: The Case of the Disappearing Business Case Study 1: Exercise 1 Case Study 2: The Case of the Sneaky CFO Case Study 2: Exercise 1 Initial Client Meeting with Jack Case Study 2: Exercise 2 Chapter 13 The Cases that Went Wrong The Client Who Believes He Was Wronged The Case of the Inaccurate Insurance Claim The Case of the Unreconciled Cash Drawer The Client Whose Decisions Affect an Investigation The Case of the Overworked Office Manager The Office Manager The Analysis The Interview The Client’s Decision Chapter 14 Data Sleuth Expansion Data Sleuth Empowers the Curious Data Sleuth Divisions Public Accounting Firms Consulting and Advisory Firms The Case of the Phony Professional Law Firms Law Enforcement The Future of Data Sleuth Data Sleuth as Prevention Licenses, Credentials, and Professional Development Appendix: Case Study Exercise Solution Recommendations Case Study 1: Exercise 1 – Solution Recommendations How Much Inventory Was Stolen by Denise for Her New Store? Case Study 2: Exercise 1 – Solution Recommendations Money In Money Out Case Study 2: Exercise 2 – Solution Recommendations About the Author About the Website Index EULA