NCJ Number
146174
Date Published
1992
Length
230 pages
Annotation
This comprehensive discussion of fraud auditing focuses on how to deter potential fraud perpetrators and what to do when indicators of fraud are found.
Abstract
There are no standards to guide the fraud auditor, as there are for the independent accountant. Until there are such standards, there will be continued reluctance in the accounting profession to conduct fraud-specific audits. A separate fraud auditing service, performed by generally accepted principles and standards as proposed in this book, would encourage insurers to examine more objectively the risk they assume as liability insurance carriers for independent accountants who offer those services. Meanwhile, management accountants and internal auditors are the most likely candidates to engage in fraud auditing. There are two types of fraud addressed in this book. First, fraudulent financial reporting, referred to as "Treadway fraud," prompts the greatest investor and lender attention. Specific acts of transaction fraud not affecting financial reporting, however, are more common and more expensive than fraudulent financial reporting. Chapters explain fraud disclosure, investigative techniques, fundamentals of the rules of evidence, and internal controls that deter fraud. Case studies provide practical illustrations of the mechanics of fraud and the many forms of fraud. A glossary, 35-item bibliography, and a subject index