Corporate Fraud And Internal Control + Software Demo: A Framework For Prevention

Essential guidance for companies to examine and improve their fraud programs

Corporate governance legislation has become increasingly concerned with the ongoing resilience of organizations and, particularly, with their ability to resist corporate fraud from the lowest levels to the upper echelons of executive management. It has become unacceptable for those responsible for corporate governance to claim, "I didn't know." Corporate Fraud and Internal Control focuses on the appropriateness of the design of the system of internal controls in fraud risk mitigation, as well as the mechanisms to ensure effective implementation and monitoring on an ongoing basis.

• Applicable for a wide variety of environments, including governmental, financial, manufacturing and e-business sectors
• Includes case studies from the United States, Europe, and Africa
• Follows the standards laid down by the Association of Certified Fraud Examiners, the internationally recognized body governing this activity
• Accompanying interrogation software demo (software demo is not included as part of this book's e-book file, but is available for download after purchase)

Written by a fraud prevention leader, Corporate Fraud and Internal Control addresses the concerns of both management and audit in ensuring a demonstrable level of activity to ensure sustainability of the organization and minimization of the impacts of fraud, upon early detection.

RICHARD E. CASCARINO, CRMA, CFE, CIA, CISM, MBA, is a principal of Richard Cascarino & Associates. He has over thirty years' experience in audit training and consultancy and is a regular speaker at Institute of Internal Auditors (IIA) and Information Systems Audit and Control Association (ISACA) events throughout the United States, Africa, Europe, and the Middle East on fraud prevention, risk management, corporate governance, IT security, and internal auditing. He is a past president of the Institute of Internal Auditors (South Africa) and was the founding Regional Director of the Southern African Region of the Institute of Internal Auditors Inc. Cascarino is also a member of the Board of Regents for Higher Education at the Association of Certified Fraud Examiners.

Preface
Chapter 1 Nature of Fraud
Fraud and Irregularities: Definitions and Concepts
Cost of Fraud
Notes
Chapter 2 Elements of the Crimes of Theft and Fraud
Document Fraud
Corroborating documents
Procurement Fraud
Bribery and Corruption
Industrial Espionage
Check Fraud and Money Laundering
Notes
Chapter 3 Frauds Against the Individual
Online Auction Fraud
Consumer Frauds
Telephone Frauds
Charity Frauds
Misrepresentation of material facts
Concealment of Material Facts
Advance fees (4-1-9) frauds
“Middleman” Frauds
Bait and switch
Larceny
Extortion
Counterfeit Goods and Intellectual Property
Affinity Frauds
Pyramid Schemes
Ponzi Schemes
Career Opportunities
Cash Recovery Frauds
Chapter 4 Frauds Against the Organization
Bankruptcy Fraud
Check Fraud
Obtaining Fraudulent Loans
Unsolicited Orders
Embezzlement
Bribery
Corruption
Conflicts of Interest
Breach of Fiduciary Duty
Theft of trade secrets
False claims
False Conveyancing
Tunnelling
Conspiracy
Lapping
Kiting
Fraudulent Affiliations
Counterfeit Money
Benefit Frauds
Insurance Fraud
Payment Card Frauds
Pension Frauds
Insider Trading
Tax Fraud
Insider Trading and Market Abuse
Click Fraud
Counterfeit Goods and Intellectual Property
Procurement fraud
Notes
Chapter 5 Fighting Corruption
Bribery in Contracts
Red Flags at Enron and WorldCom
Nepotism and Favoritism
Abuse of Authority
Developing an Overall Anti-Corruption Culture
Notes
Chapter 6 Role of Ethics in Fighting Fraud
How Moral Decisions Are Made
Nature and Role of Ethics
Managing ethical risk
Reporting of Fraud
Notes
Chapter 7 Controlling Fraud
Corporate Governance and Fraud Prevention
Audit Committee’s Role in Fighting Fraud
Internal Control and the Prevention of Fraud
Fighting Shrinkage
Internal Audit Role
Notes
Chapter 8 Fraud Risk Management
Establishing the Corporate Fraud Risk Profile
Roles of the Internal, External, and Forensic Auditor
Whistleblowing in Detecting Fraud
Note
Chapter 9 Investigating Fraud
Red flags and Indicators of Fraud
Corporate Fraud Indicators
Conducting an Investigation
Tools and Techniques
Use of the Polygraph
Documenting the Investigative Process
Evidence Analysis
Investigative Errors
After the Event
Establishing an Investigations Function
Tracing and Recovering Assets
Notes
Chapter 10 Computer Fraud and Countermeasures
Mainframe Architectures
Mainframe Communications
Control of servers
WAN Communications
WorkStation security
Mobile Computing and the Internet
Cloud Computing
Computer and Information Fraud
Monitoring Tools
Preventing eCommerce fraud
eCommerce control opportunities
e-Payments
Internal Control Best Practices
Newer Fraud Schemes
Protecting the Digital Assets
Foiling the Hackers
Investigating Computer Fraud
Detection of Incidents
Initial Response
Making forensic backups
Investigation
Network monitoring
Computer Law
Note
Chapter 11 Legal Issues Surrounding Fraud
Impact of a Constitution
Fraud and the Laws of Evidence
Asset Recovery
Labor Legislation and Fraud
Note
Chapter 12 Industry-Related Fraud Opportunities
Banking Fraud
Money Laundering
Health Care Fraud
Insurance Fraud
Tax Fraud
Social Security Fraud
Fraud After Death
Construction Fraud
Notes
Appendix A Audit Committee Charter
Appendix B Corporate Fraud Policy
Appendix C Whistleblowing Policy
Appendix D Fraud Prevention Checklist
Appendix E Fraud Risk Questionnaire Sample
Appendix F Fraud Risk Analysis
Appendix G Fraud CAATs
Glossary
About the Author
About the Web Site
Index