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.
resources involved, impact on data integrity and assets affected. With this addition, the reporting of fraud would follow the normal procedures as discussed in Chapter 6. Follow-up Part of the follow-up to any incident investigation involving fraud will involve ongoing follow-up monitoring to identify future occurrences of similar fraudulent attempts. This may require the introduction of additional monitoring controls within the user area or the computer systems themselves or a combination of
insurance fraud. Controls around Health Care Fraud In order to avoid the possibility of deliberate or accidental breaches of the laws protecting health care programs, the implementation of an effective compliance plan can not only prevent intentional fraud but can demonstrate an intention of complying with the law in the event of an unintentional breach. The Office of the Inspector General issued guidelines for such a plan to include: Conducting of internal monitoring and auditing
inclusion of short-term rewards, such as sizable annual bonuses or short-term stock options, as substantial parts of the compensation package. This situation can lead to the adoption of business practices detrimental to the survival prospects of the organization. Adoption of inappropriate (and sometimes illegal) accounting practices. In WorldCom, this involved transferring specific current costs into capital accounts, thus fraudulently concealing operating expenses and enabling the company to
may have been involved, how the fraud was executed, the duration of the fraud, where the assets are now, and how they can be recovered. It is highly unlikely that any interview will result in explicit admission of guilt, particularly from experienced fraudsters. Because they know that consistent outright denial of any knowledge of any intentional fraud is the hardest to disprove, their most likely response is repeated flat denials. Lies, Lies, Lies At all stages of interviewing, the person
government databases Third-party (chargeable) databases Universal Commercial Code (UCC) department judgments (enacted by individual states) Social networks Information may be gained both on individuals and at an aggregate level. Information available on individuals, although publicly available, may still involve a breach of privacy if not properly secured by the investigator and may thus be inadmissible in court. Nevertheless, information gathering remains a powerful tool in gathering basic