Table of Contents

Part I: Fraud and Forensic Accounting Overview.

1 FRAUD IN SOCIETY.

WHAT IS FRAUD?

TYPES OF FRAUD.

WHAT THE NUMBERS TELL US ABOUT FRAUD.

THE SOCIAL CONSEQUENCES OF ECONOMIC CRIME.

SUGGESTED READINGS.

2 UNDERSTANDING THE BASICS OF FINANCIAL ACCOUNTING.

INTRODUCTION.

THE FIVE ACCOUNTING CYCLES.

JOURNALS.

TYING THE THREAD.

SUGGESTED READINGS.

3 THE ENTITIES.

PROPRIETORSHIPS.

PARTNERSHIPS.

CORPORATIONS.

BUSINESS ENTERPRISES IN THE GLOBAL ENVIRONMENT.

SUGGESTED READINGS.

4 FUNDAMENTAL PRINCIPLES OF ANALYSIS.

GOOD ANALYSIS = DUE DILIGENCE?

WHY DO IT?

OTHER FACTORS TO CONSIDER.

ANALYSIS FOR THE NON-EXPERT.

TO THE FUTURE.

SUGGESTED READINGS.

5 THE ROLE OF THE ACCOUNTING PROFESSIONAL.

THE IMPORTANCE OF ACCOUNTING PROFESSIONALS IN THE INVESTIGATION.

THE AUDIT PROCESS.

INTERNAL CONTROLS.

Part II Financial Crime Investigation.

6 BUSINESS AS A VICTIM.

INTRODUCTION.

EMPLOYEE THEFTS.

PAYROLL FRAUD.

FRAUDULENT BILLING SCHEMES.

FRAUD COMMITTED BY OUTSIDERS.

MANAGEMENT THEFTS.

CORPORATE THEFTS.

IDENTITY THEFT.

SUGGESTED READINGS.

7 BUSINESS VILLAINS.

INTRODUCTION.

ORGANIZED CRIME AND BUSINESS.

MONEY LAUNDERING.

CONCLUSION.

SUGGESTED READINGS.

8 THE INVESTIGATIVE PROCESS.

INTRODUCTION.

CASE INITIATION.

CASE EVALUATION.

GOAL SETTING AND PLANNING.

INVESTIGATION.

CONCLUSION.

SUGGESTED READINGS.

9 INTERVIEWING FINANCIALLY SOPHISTICATED WITNESSES.

INTRODUCTION.

THE INTERVIEW.

INTERVIEWING FINANCIALLY SOPHISTICATED WITNESSES.

CONCLUSION.

SUGGESTED READINGS.

10 PROVING CASES THROUGH DOCUMENTARY EVIDENCE.

INTRODUCTION.

DOCUMENT COLLECTION.

DOCUMENT ORGANIZATION.

THE PROCESS OF PROOF.

THE LOGIC OF ARGUMENT.

PROOF THROUGH INFERENCE.

CONCLUSION.

SUGGESTED READINGS.

11 ANALYSIS TOOLS FOR INVESTIGATORS.

INTRODUCTION.

WHY USE ANALYSIS TOOLS AT ALL?

ASSOCIATIONAL ANALYSIS.

TEMPORAL ANALYSIS.

CONCLUSION.

SUGGESTED READINGS.

12 INFERENTIAL ANALYSIS.

INTRODUCTION.

HOW INFERENTIAL ANALYSIS HELPS.

WHAT IS AN INFERENCE NETWORK?

INVESTIGATIVE INFERENCE ANALYSIS.

THE KEY LIST.

CONSTRUCTING AN INVESTIGATIVE INFERENCE CHART.

PLOTTING THE CHART.

SOME TIPS FOR CHARTING SUCCESS.

APPLYING THE CHART TO THE INVESTIGATIVE PROCESS.

CONCLUSION.

SUGGESTED READINGS.

13 DOCUMENTING AND PRESENTING THE CASE.

INTRODUCTION.

CREATING A SYSTEM.

THE CASEBOOK SYSTEM.

REPORT WRITING.

TESTIFYING AS A FINANCIAL EXPERT.

CONCLUSION.

SUGGESTED READINGS.

Index.