Fraud Investigation and Forensic Accounting in the Real World

Description

This book covers every aspect of forensic accounting, anti-fraud control systems, and fraud investigations. The author uses his own case experience to guide the reader through each phase of a forensic accounting assignment and fraud investigation. The book opens with an explanation of what happened to a company that was ensnared in a huge commodity purchasing scheme. Using his knowledge and experience gained over 40 years, the author illustrates that unexpected fraud occurrences can happen to any company, in any industry. Additionally, the author explains the current white-collar crime threats that organizations face every day, as well as legal issues that are often implicated in forensic accounting and fraud investigation projects. Electronic and non-electronic evidence gathering is also covered in detail with illustrative examples. One chapter is devoted entirely to the often misunderstood, but extremely important, subject of witness interviews. It provides the correct approach to the analysis and correlation of evidence in determining findings and conclusions of an investigation. Another chapter is devoted to proper report writing. The author provides detailed guidance on presenting findings to a variety of audiences, including management, a board, law enforcement, and at trials and hearings. It also covers proper techniques for measuring economic damages and concludes with a useful index. William L. Jennings is a Senior Director at Delta Consulting Group. He is responsible for providing forensic accounting, investigation, and asset recovery services to corporations, government agencies, attorneys, and their clients, as well as business controls consulting services to organizations. With more than 40 years of experience in public accounting and auditing, forensic accounting, business valuation, investigation, asset recovery, and business controls development, Mr. Jennings has worked on hundreds of forensic accounting and investigation assignments and he provides expert testimony. Cover Half Title Title Page Copyright Page Contents Introduction Acknowledgments PART I: Fraud in the Real World Chapter 1: What Are You Up Against? A Bigger Problem than Most People Realize! Section I: Invisible Criminals The Invisible Criminal The Fraud Function Section II: Crimes Section III: The Impact of Crime on Your Organization Summary Exercises Chapter Summary/Key Takeaways Notes Chapter 2: An Ounce of Prevention Section I: How to Identify, Codify, and Prioritize Risks Pulling It All Together Section II: How to Gather and Evaluate Critical Data to Create an Early Warning Fraud Detection System Benchmark from External Dashboard Exercises Chapter Summary/Key Takeaways Notes PART II: Forensic Accounting Investigations Chapter 3: The Ounce of Prevention Didn’t Work; Now What? Section I: The Things You Should and Should Not Do When You Learn of Possible Irregularity or Crime Section II: How to Make Sure You Do Not Become One of the Victims of the Crime (i.e. Internal Auditors Are Often Punished for Not Reacting Correctly to a Suspected Crime) Section III: Creating an Effective Investigation and Resolution Strategy (The Key Is to Begin with the End in Mind) Exercises Chapter Summary/Key Takeaways Chapter 4: Conducting an Effective Preliminary Investigation Section I: Is It More Likely than Not That Something Happened? Section II: What Is the Actual Problem and How Will We Resolve It? Section III: Determining Whether Other Related Problems Exist Exercises Chapter Summary/Key Takeaways Notes Chapter 5: Beginning the Investigation Section I: Putting the Investigation Team Together Section II: Dividing Responsibilities Section III: Getting the Team Appropriate Access Exercises Chapter Summary/Key Takeaways Chapter 6: Legal Issues Section I: Working with Lawyers Section II: Laws and Rules Related to Accessing Third Party Information What about the EU? What is Personal Data under GDPR? What about the Banks? Section III: Laws and Rules Related to Accessing Documents Section IV: Laws and Rules Related to Accessing Witnesses Exercises Chapter Summary/Key Takeaways Notes Chapter 7: Gathering Information and Evidence Section I: Preventing the Intentional or, More Often, Unintentional Destruction of Evidence Section II: The Best Evidence Rule and How to Select Which Evidence to Gather Section III: Properly Preserving and Collecting Electronic Evidence Section IV: Properly Preserving and Collecting Non-Electronic Evidence Exercises Chapter Summary/Key Takeaways Notes Chapter 8: Interviewing Witnesses Section I: The Science and Art of Conducting Witness Interviews What Science Tells Us about Witness Interviews What the Law Tells Us about Witness Interviews The Art of Witness Interviews How I Conduct Witness Interviews Section II: Preparation for the Interview Section III: Conducting the Interview Section IV: Memorializing the Interview Section V: Writing the Interview Report Exercises Chapter Summary/Key Takeaways Notes Chapter 9: Conducting a Forensic Analysis of the Evidence Section I: Framing the Questions That Must Be Answered with the Evidence Section II: Creating a Forensic Analysis Workplan Section III: Creating Effective Work Paper Systems to Support Findings and Conclusions Section IV: Analytical Tools Commonly Used in Fraud Investigation Section V: Using Data Science in Fraud Investigation and Forensic Accounting Exercises Chapter Summary/Key Takeaways Notes Chapter 10: Documenting Findings, Forming Conclusions, and Writing the Investigation Report Section I: Types of Reports Section II: What the Investigation Report Must Accomplish Section III: The Elements of a Good Investigation Report Section IV: Fact and Computation Checking Exercises Chapter Summary/Key Takeaways Note Chapter 11: Quantification of Economic Damages Section I: Game Theory and Settlement Section II: Determining the Proper Measure of Economic Damages Section III: Proper Techniques for Measuring Economic Damages Section IV: Business Valuation Techniques Used in Measuring Economic Damages Why Issued Example: Economic Damages Example: Valuation Report Exercises Chapter Summary/Key Takeaways Notes Chapter 12: Presenting Findings and Conclusions Internally Section I: To Management Section II: To Audit or Other Board Committees Exercises Chapter Summary/Key Takeaways Chapter 13: Presenting Findings and Conclusions to Law Enforcement Section I: Factors to Consider in Deciding to Go to Law Enforcement Section II: Sharing Findings, Conclusions, and Evidence with Law Enforcement Exercises Chapter Summary/Key Takeaways Notes Chapter 14: Presenting Evidence at Trial Section I: The Judicial Process Generally Facts and Data Considered by the Witness Exhibits Used to Summarize Facts or Data Section II: Fact Witness Testimony Section III: Expert Witness Testimony Section IV: Rules of Civil Procedure Generally Section V: The Chess Game Exercises Chapter Summary/Key Takeaways Notes Index