Today’s TopicsFraud PreventionFraud DetectionFraud InvestigationInvestigation ProcessLegal ActionFORENSIC ACCOUNTING - BA124 – Fall 2011 Slide 3-1Today’s TopicsFighting FraudFraud preventionEarly detectionFraud investigationsLegal interventionFORENSIC ACCOUNTING - BA124 – Fall 2011 Slide 3-2Fraud PreventionCulture of honesty and integrityManage by exampleHire the right peopleCommunicate expectationsPositive work environmentProper handling of fraudEnterprise risk managementIdentify risks-likelihood and impactImplementing controlsWidespread monitoringEffective audit functionFORENSIC ACCOUNTING - BA124 – Fall 2011 Slide 3-3Fraud DetectionBy chanceBy intent-new trendFORENSIC ACCOUNTING - BA124 – Fall 2011 Slide 3-4Fraud InvestigationPredication: circumstances that lead to past, present or future fraudUsing the evidence squareTestimonial evidenceDocumentary evidencePhysical evidencePersonal observationUsing a variation of the fraud triangleInvestigation of theftInvestigation of concealmentInvestigation of conversionDirect inquiryFORENSIC ACCOUNTING - BA124 – Fall 2011 Slide 3-5Investigation ProcessEstablish truthUse experienced investigatorsGuard hypothesesPrudent communicationIndependent corroboration of informationAvoidance of questionable techniquesFair and objective reportingFORENSIC ACCOUNTING - BA124 – Fall 2011 Slide 3-6Legal ActionNoneMore than 50%CivilGood for non employeesCriminalRestitution and jail timeHarder to convictHigher degree of
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