About the Book

It is much more cost effective to prevent fraud than to punish it, and such is the focus of this comprehensive book, Corporate Fraud Handbook: Recognition, Prevention, and Detection, Fourth Edition by Joseph Wells and the Association of Certified Fraud Examiners. Like no other book on fraud, this book explains fraud schemes used by employees, owners, managers, and executives to defraud their customers and illustrates each scheme with real-life case studies submitted to the ACFE by actual fraud examiners who aided in the case resolutions. It shows the reader how to spot the "red flags" of fraud, , and how to develop and implement effective preventative measures. This new edtion contains all new statistics from the ACFE 2012 Report to the Nation as well as new cases.

About the Author

Joseph T. Wells, Austin, TX, CPA, CFE, is the founder and Chairman of the Association of Certified Fraud Examiners (ACFE). Wells writes, researches, and lectures to business and professional groups on fraud-related issues and is frequently quoted in the media. He writes a regular column for the Journal of Accountancy and was the 2002 winner of the Innovation in Accounting Education Award presented by the American Accounting Association (AAA).

Table of Contents:
1. INTRODUCTION Defining "Occupational Fraud and Abuse" Research in Occupational Fraud and Abuse 2012 Report to the Nations on Occupational Fraud and Abuse Notes PART 1 ASSET MISAPPROPRIATIONS 2. INTRODUCTION TO ASSET MISAPPROPRIATIONS Overview Definition of "Assets" How Asset Misappropriations Affect Books of Account Notes 3. SKIMMING Overview Skimming Data from ACFE 2011 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 Notes 4. CASH LARCENY Overview Cash Larceny Data from ACFE 2011 Global Fraud Survey Incoming Cash Cash Larceny from the Deposit Miscellaneous Larceny Schemes Detection Prevention 5. CHECK TAMPERING Overview Check Tampering Data from ACFE 2011 Global Fraud Survey Forged Maker Schemes Intercepted Checks Forged Endorsement Schemes Altered Payee Schemes Concealed Check Schemes Authorized Maker Schemes Concealment Detection Prevention Electronic Payment Tampering Prevention and Detection Notes 6. REGISTER DISBURSEMENT SCHEMES Overview Register Disbursement Data from ACFE 2011 Global Fraud Survey False Refunds False Voids Concealing Register Disbursements Detection Prevention 7. BILLING SCHEMES Overview Billing Scheme Data from ACFE 2011 Global Fraud Survey Cash-Generating Schemes Invoicing via Shell Companies Invoicing via Nonaccomplice Vendors Personal Purchases with Company Funds Detection Prevention 8. PAYROLL AND EXPENSE REIMBURSEMENT SCHEMES Overview Payroll Scheme Data from ACFE 2011 Global Fraud Survey Payroll Schemes Expense Reimbursement Data from ACFE 2011 Global Fraud Survey Expense Reimbursement Schemes Detection of Payroll Schemes Detection of Expense Reimbursement Schemes Prevention of Payroll Schemes Prevention of Expense Reimbursement Schemes 9. INVENTORY AND OTHER ASSETS Overview: NonCash Misappropriation Data from ACFE 2011 Global Fraud Survey Misuse of Inventory and Other Assets Theft of Inventory and Other Assets Concealment Detection Prevention Misappropriation of Intangible Assets Note PART II CORRUPTION 10. BRIBERY Overview Corruption Data from ACFE 2011 Global Fraud Survey Bribery Schemes Something of Value Economic Extortion Illegal Gratuities Detection Prevention Notes 11. CONFLICTS OF INTEREST Overview Purchasing Schemes Sales Schemes Other Schemes Detection Prevention Note PART III FRAUDULENT STATEMENTS 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 ACFE 2009 Global Fraud Survey Notes 13. FINANCIAL STATEMENT FRAUD SCHEMES Overview Defining Financial Statement Fraud Costs of Financial Statement Fraud Methods of Financial Statement Fraud Fictitious Revenues Timing Differences Concealed Liabilities and Expenses Improper Disclosures Improper Asset Valuation Detection of Fraudulent Financial Statement Schemes Deterrence of Financial Statement Fraud 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 Notes APPENDIX:SAMPLE CODE OF BUSINESS ETHICS AND CONDUCT Introduction Conflicts of Interest Company Assets Political Contributions Employee Conduct Compliance Letter and Conflict of Interest Questionnaire Bibliography Index