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| Case Studies | |
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| Preface | |
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| What Is Fraud? | |
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| Fraud: A Definition | |
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| Why Fraud Happens | |
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| Who Is Responsible for Fraud Detection? | |
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| What Is a Fraud Awareness Program? | |
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| Screening Job Applicants | |
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| What Is a Corporate Fraud Policy? | |
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| Notes | |
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| Fraud Prevention and Detection | |
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| Detecting Fraud | |
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| Determining the Exposure to Fraud | |
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| Assessing the Risk that Fraud Is Occurring (or Will Occur) | |
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| External Symptoms | |
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| Identifying Areas of High Risk for Fraud | |
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| Looking at the Exposures from the Fraudster's Perspective | |
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| Approach 1: Control Weaknesses | |
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| Who Could Benefit from the Identified Control Weaknesses? | |
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| What Can They Influence, Control, or Affect? | |
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| Can They Act Alone or Is Collusion Required? | |
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| Approach 2: Key Fields | |
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| Which Data Fields Can Be Manipulated and by Whom? | |
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| Additional Fraud Risk Considerations | |
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| Understanding the Symptoms of Fraud | |
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| Being Alert to the Symptoms of Fraud | |
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| Building Programs to Look for Symptoms | |
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| Investigating and Reporting Instances of Fraud | |
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| Implementing Controls for Fraud Prevention | |
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| Notes | |
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| Why Use Data Analysis to Detect Fraud? | |
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| Increased Reliance on Computers | |
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| Developing CAATTs Capabilities | |
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| Integrated Analysis and Value-Added Audit | |
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| Recognizing Opportunities for CATTs | |
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| Developing a Fraud Investigation Plan | |
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| Notes | |
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| Solving the Data Problem | |
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| Setting Audit Objectives | |
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| Defining the Information Requirements | |
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| Accessing Data | |
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| Data Paths | |
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| Data File Attributes and Structures | |
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| Assessing Data Integrity | |
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| Overview of the Application System | |
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| Overview of the Data | |
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| Notes | |
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| Understanding the Data | |
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| Computer Analysis | |
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| Analysis Techniques | |
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| Filter/Display Criteria | |
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| Expressions/Equations | |
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| Gaps | |
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| Statistical Analysis | |
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| Duplicates | |
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| Sort/Index | |
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| Summarization | |
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| Stratification | |
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| Cross Tabulation/Pivot Tables | |
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| Aging | |
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| Join/Relate | |
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| Trend Analysis | |
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| Regression Analysis | |
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| Parallel Simulation | |
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| Benford's Law | |
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| Digital Analysis | |
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| Confirmation Letters | |
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| Sampling | |
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| Combining Techniques | |
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| Assessing the Completeness of the Data | |
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| Filter or Display Criteria | |
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| Expression/Equation | |
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| Gaps | |
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| Statistical Analysis | |
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| Duplicates | |
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| Sorting and Indexing | |
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| Notes | |
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| Overview of the Data | |
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| Summarization | |
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| Stratification | |
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| Cross Tabulation/Pivot Tables | |
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| Working with the Data | |
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| Aging | |
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| Join/Relation | |
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| Analyzing Trends in the Data | |
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| Trend Analysis | |
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| Regression Analysis | |
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| Parallel Simulation | |
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| Notes | |
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| Known Symptoms of Fraud | |
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| Known and Unknown Symptoms | |
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| Fraud in the Payroll Area | |
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| Ghost Employees | |
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| Terminated Employees | |
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| Overpayment | |
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| Fraud in the Purchasing Area | |
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| Employee Activities | |
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| Vendor Action and Employee Inaction | |
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| Collusion between Vendor and Employee | |
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| Symptoms of Purchasing Fraud | |
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| Kickbacks | |
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| Fixed Bidding | |
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| Goods Not Received | |
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| Duplicate Invoices | |
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| Inflated Prices | |
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| Inferior Quality | |
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| Excess Quantities | |
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| Unknown Symptoms of Fraud (Using Digital Analysis) | |
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| Data Profiling | |
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| Statistical Analysis | |
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| Stratification | |
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| Frequently Used Values | |
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| Even Amounts and Rounding | |
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| Least/Most Used Categories | |
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| Ratio/Variance Analysis | |
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| Maximum/Minimum | |
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| Maximum/Second Highest | |
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| Current/Previous | |
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| One Business Area/Another | |
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| Benford's Law | |
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| Notes | |
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| Automating the Detection Process | |
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| Fraud Applications or Templates | |
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| Fraud Application Development | |
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| Verifying the Results | |
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| Confirmation Letters | |
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| Sampling | |
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| Judgmental or Directed Sampling | |
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| Statistical Sampling | |
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| Quality Assurance | |
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| Quality Assurance Methodology | |
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| Preventive Controls | |
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| Detective Controls | |
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| Corrective Controls | |
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| Ensuring Reliability | |
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| Data Analysis and Prosecuting Fraud | |
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| Notes | |
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| Fraud Investigation Plans | |
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| Insurance Policies-Too Good to Be True | |
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| Paid by the Numbers | |
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| Application of CAATTs by Functional Area | |
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| Accounts Receivable Tests | |
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| Accounts Payable Tests | |
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| General Ledger Tests | |
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| Materials Management and Inventory Control Tests | |
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| Salary and Payroll Tests | |
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| Purchase Order Management Tests | |
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| Conflict-of-Interest Tests | |
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| Kickback Tests | |
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| Bid-Rigging Tests | |
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| Policy and Administration Tests | |
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| Vendor Management Tests | |
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| Retail Loss Prevention Tests | |
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| Sales Analysis Tests | |
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| Work in Progress Tests | |
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| Cash Disbursement Tests | |
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| Customer Service Management Tests | |
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| Loan Tests | |
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| Deposit Tests | |
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| Real Estate Loans | |
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| Credit Card Management | |
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| Life Insurance Tests | |
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| Travel Claims | |
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| ACL Installation Process | |
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| Epilogue | |
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| References | |
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| Index | |