Arresting every fraudster and punishing him are very expensive and require a lot of unavailable human and financial resources. The damaging effects of fraud would not be reversed, nor would lost assets or reputations be restored when fraud is discovered. It is economically more feasible to prevent fraud than to detect and correct it. Thus, having internal controls that are proactive rather than reactive is no longer a good business practice; it is mandatory.c
"Martin Biegelman and Joel Bartow bring to this impressive work a combined 50 years of public- and private-sector experience in detecting, investigating, and preventing fraud and white-collar fraud." Questia
There is a new reality out there–a new normal. What was once certain–that you would be able to retire comfortably; that you would pay for your kids’ education; that your home would appreciate in value–is no longer a sure thing. So much has changed on the financial landscape that it’s hard
On the heels of the Enron trial, there are many lessons to be learned from the barrage of fraud hammering corporate America -- including how to spot signs of future impropriety. In a gripping and intriguing read, BUSINESS FAIRY TALES uses real-world scandals to illustrate the top twenty most common methods
In 2007, when the world was staring into the teeth of the biggest economic catastrophe in three generations, very few economists had any idea there was any trouble lurking on the horizon. Three years into the mess, economists now offer remedies that strike most people as frankly ridiculous. We are told
2008 and 2009 will be remembered for bear markets, a global credit crunch and some of the largest investment scams ever. But these scams are nothing new; from Charles Ponzi to Bernard Madoff to Sir R. Allen Stanford, they've been repeated throughout history, and there will certainly be more to come
Merchants and fraud investigators should use software that detects unusual pattern of transactions for possible fraudulent activities.
Common ways that fraudsters obtain good numbers are to bribe hotel desk clerks, call center agents, and gas station attendants
Electronic funds transfers are good because they reduce the number of persons with access to negotiable documents.
To prevent check interception schemes, checks should be mailed directly to the third party as soon as they are prepared. Employees and contractors should not be allowed to collect checks in person.
There are several tools that can be used to evaluate the risk of each type of fraud such as the Quad Method and the Chessboard Method.
COSO is the Committee of Sponsoring Organizations, a voluntary, private sector organization dedicated to improving the quality of financial reporting through business ethics, effective internal controls and corporate governance.
Statement on Auditing Standards requires an auditor to plan and perform an audit in order to determine whether the financial statements are free of material misstatement.