Expert Fraud Investigation

Preface
Acknowledgments

1. Finding Fraud
- Signs of Fraud
- Looking for Suspects
- Evaluating Fraud Tips
- Should You Investigate?
- Confronting Suspects
- Skills of a Fraud Investigator
- Differences between Audits and Investigations
- Conducting a Fraud Investigation
- Notes

2. Beginning the Investigation
- Assessing the Engagement
- Making Recommendations
- Budgeting and Cost Control
- Fees
- Billing Practices
- Engagement Letters

3. Managing the Case
- Assembling the Team: Where to Start
- Assembling the Team: Company Insiders
- Assembling the Team: Key Participants
- Assembling the Team: Outside Consultants
- Importance of Credentials
- Management and Supervision of Staff
- Work Programs and Checklists
- Document Management
- Preserving Evidence
- File Maintenance
- Investigative Software
- Professional Standards
- When to Stop Investigating

4. Searching for Fraud
- Analytical Review
- Key Financial Ratios
- Write-offs, Adjustments, and Miscellaneous
- Manual Disbursements
- What about Financial Statement Audits?
- Looking for Fraud in Little Things

5. Sources of Information
- Who Acquires Information
- Internal Records
- Private Records
- Public Records
- The Internet and Search Engines

6. Investigative Techniques
- Corporate Background Checks
- Individual Background Checks
- Searching for Friends, Family, and Associates
- Surveillance
- Digital Data Analysis
- Computer Forensics
- Interviewing Witnesses and Suspects
- Confirmation with Customers and Vendors
- Creativity and the Fraud Investigator

7. Investigation of Asset Misappropriation Schemes
- Cash Receipts Schemes
- Disbursement Schemes
- Noncash Schemes

8. Investigation of Financial Statement Fraud
- Revenue Overstatement
- Channel Stuffing
- Round-Tripping
- Asset Overstatement
- Liability and Expense Understatement
- Reserve Manipulation
- Misrepresentation or Omission of Information
- Improper Recording of Mergers and Acquisitions
- Off-Balance-Sheet Items
- Accounting Involves Judgment and Estimates
- Earnings Management
- Note

9. Investigation of Corruption Schemes
- Bribes
- Kickbacks
- Extortion and Conflict of Interest
- Related-Party Transactions
- Money Laundering
- Foreign Corrupt Practices Act (FCPA)
- Prevention and Detection
- Note

10. Investigation of External Fraud Schemes
- Corporate Espionage
- Investment Schemes
- Pyramid or Ponzi Schemes
- Securities Fraud
- Hidden Income or Assets
- Insurance Fraud
- Bankruptcy Fraud
- Note

11. Reporting and Litigation
- Stick to the Facts
- Keep it Simple
- Background Information
- Investigation Procedures
- Opinions
- Attachments
- Draft Reports
- Unfavorable Opinions
- Follow-up to the Fraud Investigator's Work
- Being an Expert Witness
- Preparing for Testimony
- Deposition Testimony
- Trial Testimony
- Note

12. Other Issues
- Moving Forward as a Company
- Preventing Future Frauds
- Marketing a Fraud Investigation Practice
- Competing with Other Firms
- Conducting a Global Investigation
- Professional Liability Issues
- Reducing Fraud with Investigations
- Note

Appendix
Index