Author: Dr Joseph Wells
ISBN No: 978-1-119-35198-6
Review date: 28/11/2023
No of pages: 432
Publisher: Wiley
Publisher URL:
http://eu.wiley.com/WileyCDA/WileyTitle/productCd-1119351987.html
Year of publication: 22/06/2017
Brief:
price
£70
There’s a call here as in other fields of criminology for a link of ‘the theorist with the practitioner’; and former FBI man Dr Joseph T Wells has done that, as the sheer fact of his book has reached five editions, after the first in 2004 and fourth in 2013.
A variety of petty crimes and other counterproductive behavior that have become common, and are even silently condoned, in the workplace. Good workers (so-called) can turn bad. As the latest, fifth edition of a ‘Corporate Fraud Handbook‘ soon shows, there’s more to a fraud than the theft; human psychology, morals, are involved, such as personal integrity, and the gaining and betrayal of trust.
Wells is as at home among the theories for how and why some people do fraud and not others – the ‘fraud triangle’ of need, opportunity and rationalising the wrong away – as he is among the reality of cases, which practitioners may want to turn to most. Wells also is frank enough to admit when he did workplace fraud; when working through college, as a sales person in a clothing store. As he sets out, he stole to ‘get even’ like other staff, after the employer humiliated him. Although Wells does not say so outright, some of the stealing made no sense – he and others even stole a large display case. Wells does well to show that fraud, abuse of trust, need not be purely for someone to better themselves – whether materially or in terms of status, as perceived by the wrong-doer. Where the employees feel an (unspoken) bond between them and the employer is broken – or never existed, there can lie the basis of fraud. Wells does air this: “Much has been written recently concerning the downsizing, outsourcing, and increased employee turnover in business. If the employee of the future is largely a contract worker, much of the incentive of loyalty toward organizations could be lost. Such a trend seems to be underway, but its real fraud impact has not been determined.”
The lack of study of fraud, or ‘occupational offences’ – why some do it and not others, when and where they do it, why a fraudster steals a large or small amount, or even simply how much of the crime there is around (which may be impossible to put a figure on, Wells admits) – has bedevilled fraud prevention and detection, because as with any crime, if you can’t measure it, you can hardly justify devoting resources to it, compared with everything else. “Considering its enormous impact, relatively little research has been done on the subject of occupational fraud and abuse,” as Wells writes; and in his ‘Corporate Fraud Handbook’, Dr Joseph T Wells goes a long way to rectifying that, in a well-written, learned work, that’s reeking with experience and understanding.
The book covers plenty of ground, including the founding of the ACFE and its CFE qualification, that arose out of a need that Wells and others saw for a ‘hybrid profession’ to counter sophisticated frauds that police were not equipped to; with skills in accounting, but also investigation; ‘someone as comfortable interviewing a suspect as reading a balance sheet’. Not the least of Wells’ messages is that fraud can come in any part of any business, from inventory to marketing, anywhere that has a budget. While everyone can do fraud – young and old, long-standing or new staff, men and women – a particular risk is in small businesses, it seems, where one employee does all the accounting, writes cheques, and reconciles the accounts (which takes us back to trust; and yet, as Wells points out, nor can commerce in general go on without trust).
How does a fraud come to light? Sometimes by internal audit or management review, or even by accident; but most often by a tip-off. What works against fraud? Not necessarily lots of security and control measures, Wells suggests; that may even be counter-productive. For one thing, you may usefully look to the underlying causes, such as the grudges of employees. Again, Wells hints at how fraud is bound up with business and organisations in general, another reason why the book deserves an audience among more than security and counter-fraud specialists.
About the author: Dr Joseph T Wells is the founder of the US-based Association of Certified Fraud Examiners (ACFE).
To read more from thr ACFE, visit http://www.acfe.com/resource-library.aspx#Articles-Reports.
Table of Contents
Preface
About the ACFE
Chapter 1: Introduction
Defining “Occupational Fraud and Abuse”
Research in Occupational Fraud and Abuse
2016 Report to the Nation on Occupational Fraud and Abuse
PART I: ASSET MISAPPROPRIATIONS
Chapter 2: Introduction to Asset Misappropriations
Overview
Definition of “Assets”
How Asset Misappropriations Affect Books of Account
CHAPTER 3: Skimming
Skimming Data from the ACFE 2015 Global Fraud Survey
Unrecorded Sales
Understated Sales and Receivables
Theft of Checks Through The Mail
Short-Term Skimming
Converting Stolen Checks
Concealing The Fraud
Detection
Prevention
Chapter 4: Cash Larceny
Overview
Cash Larceny Data from the ACFE 2015 Global Fraud Survey
Incoming Cash
Cash Larceny from the Deposit
Miscellaneous Larceny Schemes
Detection
Prevention
Chapter 5: Check Tampering
Overview
Check Tampering Data from the ACFE 2015 Global Fraud Survey
Forged Maker Schemes
Intercepted Checks
Forged Endorsement Schemes
Altered Payee Schemes
Concealed Check Schemes
Authorized Maker Schemes
Concealment
Detection
Check Tampering Red Flags
Prevention
Electronic Payment Tampering
Chapter 6: Register Disbursement Schemes
Overview
Register Disbursement Data from the ACFE 2015 Global Fraud Survey
False Refunds
False Voids
Concealing Register Disbursements
Detection
Prevention
Chapter 7: Billing Schemes
Overview
Billing Scheme Data from the ACFE 2015 Global Fraud Survey
Shell Company Schemes
Non-Accomplice Vendor Schemes
Personal Purchases with Company Funds
Detection
Prevention
Chapter 8: Payroll and Expense Reimbursement Schemes
Overview
Payroll Scheme Data from the ACFE 2015 Global Fraud Survey
Payroll Schemes
Detection of Payroll Schemes
Prevention of Payroll Schemes
Expense Reimbursement Data from The ACFE 2015 Global Fraud Survey
Expense Reimbursement Schemes
Detection of Expense Reimbursement Schemes
Prevention of Expense Reimbursement Schemes
Chapter 9: Inventory and Other Noncash Assets
Overview: Noncash Misappropriation Data from the ACFE 2015 Global Fraud Survey
Misuse of Inventory and Other Assets
Theft of Inventory and Other Assets
Concealment
Detection
Prevention
Misappropriation of Intangible Assets
PART II: CORRUPTION
Chapter 10: Bribery
Overview
Corruption Data from the ACFE 2015 Global Fraud Survey
Bribery Schemes
Something of Value
Economic Extortion
Illegal Gratuities
Detection
Prevention
Anti-Corruption Legislation
Chapter 11: Conflicts of Interest
Overview
Purchasing Schemes
Sales Schemes
Other Schemes
Detection
Prevention
PART III: FINANCIAL STATEMENT FRAUD
Chapter 12: Accounting Principles and Fraud
Introduction
Fraud in Financial Statements
Major Generally Accepted Accounting Principles
Responsibility for Financial Statements
Users of Financial Statements
Types of Financial Statements
Sarbanes-Oxley Act
Financial Statement Fraud Data from the ACFE 2015 Global Fraud Survey
Chapter 13: Financial Statement Fraud Schemes
Overview
Defining Financial Statement Fraud
Costs of Financial Statement Fraud
Methods of Financial Statement Fraud
Detection of Financial Statement Fraud Schemes
Deterrence of Financial Statement Fraud
Chapter 14: Occupational Fraud and Abuse: The Big Picture
Defining “Abusive Conduct”
Measuring the Level of Occupational Fraud and Abuse
Understanding Fraud Deterrence
Corporate Sentencing Guidelines
Ethical Connection
Concluding Thoughts
Appendix: Sample Code of Business Ethics and Conduct
Bibliography
Index.
