Forensic Accounting and Fraud Investigation for Non-Experts / Edition 3

by Howard Silverstone

Overview

Forensic Accounting and Fraud Investigation for Non-Experts is a dependable, up-to-date resource for detecting, preventing, and successfully prosecuting financial fraud. The authors address all phases of forensic accounting, complete with actual examples demonstrating applications in the real world. In one conveniently organized volume, non-experts get access to all the critical accounting principles and investigative techniques that help protect any organization from fraud, including insightful advice on where an organization is most susceptible to fraud and how to implement effective investigation processes when fraud is suspected.

Product Details

ISBN-13:	2900470879596
Publication date:	04/03/2012
Pages:	336
Product dimensions:	6.50(w) x 1.50(h) x 9.50(d)

About the Author

HOWARD SILVERSTONE, CPA, FCA, CFE, is Director at Forensic Resolutions, Inc.

MICHAEL SHEETZ, JD, is an adjunct professor of business law, ethics, and international law for several universities, and a former appellate law clerk for the Fourth District Court of Appeals.

STEPHEN PEDNEAULT, CPA/CFF, CFE, is a Principal of Forensic Accounting Services, LLC, where he specializes in forensic accounting, employee fraud, and litigation support matters. He is an adjunct professor at the University of Connecticut; is the author of Fraud 101: Techniques and Strategies for Understanding Fraud, Third Edition; contributed to Fraud Casebook: Lessons from the Bad Side of Business; and has written articles for state and national publications.

Frank E. Rudewicz, JD, CPP, CAMS, has more than thirty years’ experience conducting domestic and international investigations for fraud, ethics, and other employment-related conduct. Mr. Rudewicz has been involved in numerous high-profile and sensitive engagements regarding fraud, organized crime, compliance, and security assessments. He has appeared on Dateline NBC, Forensic Files, and various other media outlets for his investigative work. A recognized expert on security and investigations, Mr. Rudewicz lectures and teaches frequently on these topics. He often provides expert testimony and conducts independent inquiries for a variety of employee misconduct issues.

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Table of Contents

	Introduction	1
Part 1	Fraud and Forensic Accounting Overview	3
1	Fraud in Society	5
	What Is Fraud?	5
	Types of Fraud	8
	What the Numbers Tell Us about Fraud	14
	The Social Consequences of Economic Crime	32
	Notes	38
	Suggested Readings	40
2	Understanding the Basics of Financial Accounting	43
	Introduction	43
	The Father of Accounting	43
	The Five Accounting Cycles	45
	Journals	53
	Tying the Thread	55
	Note	56
	Suggested Readings	56
3	The Entities	57
	Introduction	57
	Proprietorships	57
	Partnerships	58
	Corporations	60
	Notes	62
	Suggested Readings	62
4	Fundamental Principles of Analysis	63
	Good Analysis = Due Diligence?	63
	Why Do It?	64
	Analysis for the Non-Expert	66
	Analysis through a Case Study	71
	To the Future	74
	Note	75
	Suggested Readings	75
5	The Role of the Accounting Professional	77
	The Importance of Accounting Professionals in the Investigation	77
	The Audit Process	80
	Internal Controls	82
	Notes	84
	Suggested Reading	85
Part 2	Financial Crime Investigation	87
6	Business as a Victim	89
	Introduction	89
	Employee Thefts	89
	Payroll Fraud	91
	Fraudulent Billing Schemes	93
	Fraud Committed by Outsiders	95
	Management Thefts	95
	Corporate Thefts	98
	Notes	99
	Suggested Readings	100
7	Business as a Vehicle	101
	Introduction	101
	Organized Crime and Business	101
	The Lifecycle Model of Traditional Organized Crime	102
	The Shared Profit Motive	104
	Money Laundering	104
	Cyber-Laundering	112
	Summary	115
	Notes	116
	Suggested Readings	117
8	Case Generation	119
	Introduction	119
	The Investigative Process--The Investigation Life Cycle	120
	Summary	131
	Notes	131
	Suggested Readings	132
9	Interviewing Financially Sophisticated Witnesses	133
	Introduction	133
	The Interview Process	135
	Bringing Closure to the Interview	146
	Interviews in Financial Crime	147
	Summary	150
	Notes	150
	Suggested Readings	152
10	Analytical Techniques for Financial Crime Investigation	155
	Introduction	155
	Getting Organized	156
	The Process of Proof	157
	The Logic of Argument	158
	The Inferential Nature of Proof	162
	Summary	176
	Notes	176
	Suggested Readings	177
11	Inference Network Analysis	181
	Introduction	181
	Linking Inferences	182
	The Investigative Inference Model	190
	Summary	195
	Notes	197
	Suggested Readings	197
12	Implementing the Investigative Inference Model	201
	Introduction	201
	The Key List	201
	Plotting the Chart	206
	Some Tips for Plotting Success	211
	Applying the Chart to the Investigative Process	213
	Summary	214
	Notes	215
	Suggested Readings	216
13	Documenting the Investigation	217
	Introduction	217
	The Casebook System	218
	Components of the System	221
	Closing the Book on the Casebook System	230
	Notes	231
14	Testifying in Financial Crime Cases	233
	Introduction	233
	The Role of the Professional Witness	234
	Communicating Your Knowledge	237
	The Role of the Financial Crime Expert in Litigation	244
	Summary	252
	Notes	252
	Suggested Readings	254
Appendix A	Key List	255
Appendix B	Federal Rules of Evidence	259
	Glossary	277
	Index	285