Have you ever desired to become a fraud prevention champion? In this half-day course, we will peer into real-life governmental fraud cases and see how they occurred. You will leave the class with practical fraud prevention steps for any national, state or local government. The course location is the Capital Hilton Hotel in Washington DC.

Date:August 9, 2017
Time:8:00-11:35 a.m.
Event:Charles Hall Speaking at AICPA Governmental Accounting and Auditing Update Conference
Topic:How to Become a Super Fraud-Prevention Champion
Sponsor: AICPA
Public:Public
Registration:Click here to register.

The Balance Sheet Audit Approach: Slaying a Sacred Cow

Why the risk based audit approach is better

Sacred cows make great steaks. Richard Nicolosi.

Risk-based audit standards have existed for years, but I still see a resistance to risk assessment procedures. Why? A reliance on the traditional balance sheet audit approach. I think many auditors prefer to test a bank reconciliation (ticking off each cleared transaction) to interviewing the company’s CFO. They enjoy the certainty of vouching payables (yep, the invoice agrees with the payable detail) and disdain the difficulty of walking a transaction through the accounting system. Regardless, many CPA firms struggle to slay the sacred cow of balance sheet audits.

What is a Balance Sheet Audit?

So what is a balance sheet audit approach?

It’s the examination of period-end balance sheet totals (the results of accounting processes) rather than the accounting processes themselves. For example, the auditor might confirm receivables and not perform a walkthrough of billing and collections. The balance sheet audit approach lacks any significant focus on the income statement.

While it is true that nailing down (or “beating up”) the balance sheet provides helpful audit evidence, there are some downsides.

The Downside of Balance Sheet Audits

So what are the weaknesses of a balance sheet audit approach?

First, the balance sheet approach does not address the income statement. Consequently, income statement line items may be misclassified (e.g., expenses netted with revenues). If the balance sheet is correct, net income (the result of revenues and expenses) is correct. But revenues and expenses can still be misclassified. (I once saw grant revenue of $300,000 netted with related grant expenses resulting in a $0 impact to revenues and expenses.)

Secondly, and more importantly, the balance sheet audit method does not address the possibility of theft (and some forms of fraudulent reporting of revenues and expenses). Sure we can confirm cash and reconcile the balance to the general ledger. So what? If someone steals $1 million in cash receipts (or $10 million or whatever number you want to use), the balance sheet approach may not address the risk of theft.

The same is true if the CFO steals money by cutting checks to himself (or to fictitious vendors). The accounts payable balance can be reconciled to a detail, and a search for unrecorded liabilities can be performed–typical balance sheet audit steps–but these procedures don’t address theft.

Finally, audit standards require walkthroughs, fraud inquiries, planning analytics, and an understanding of the business. Without these steps, we cannot truly understand audit risks that lie hidden in accounting processes.

balance sheet audit

Picture from AdobeStock.com

The Upside of Risk-Based Audits

I still believe that auditors can save time using a risk-based audit approach.

Understanding the business and its processes requires time, but doing so can lead to a leaner audit. You can decrease some substantive procedures when you know where your risks are. We can also mitigate audit risk (because we know what the risks are).

And this is the beauty and logic of risk-based audits. We determine where the risks are, and then we perform procedures to address those risks. We cease to blindly focus on the balance sheet. 

Less time, less risk.

Sounds good to me–but slaying a sacred cow is necessary. I like my steaks medium rare. How about you?

Agree or disagree? Please let me know.

Wire Transfer Theft: How to Prevent It

How to steal $6.9 million in less than an hour

In one of the easiest thefts I’ve read about, a nonprofit administrative officer wired $6.9 million from an Ohio bank account to another account in Austria. The wire transfer originated with the fax of a letter (which took less than an hour to create). Since the officer was authorized to make wire transfers, no one at the bank questioned the transaction–until it was too late. The fraudster landed in Austria, called his wife and said, “I’m not coming home.” Interestingly, the wife called the police and turned her husband in; he later came back to the states of his own volition (after his wife gave him an earful). He went to jail. I guess, after a few boat rides down the Danube, he missed his family.

Preventing wire transfer theft

Picture from AdobeStock.com

Wire Transfer Theft is Easy

It’s easy for an accounting clerk (or other authorized company official) to wire funds and to cover their tracks with a journal entry – too easy in many cases. If a company  accountant or official has the ability to (1) wire funds by himself and (2) make journal entries without a second-person review, then the organization has left the fraud door wide open. Such a situation is not uncommon in small businesses, nonprofits and governments.

As you think about wire transfers, consider that they can be originated with a fax, a phone call, a personal visit to the bank, or a computer. Determine how your bank handles wire transfers and craft your internal controls based on those dynamics.

Wire Transfer Internal Controls

Organizations should do the following to mitigate wire transfer fraud:

  1. Require the bank to limit daily wire transfer amounts (e.g., $25,000 per day for each employee)
  2. Require two persons to consummate all wire transfers to external parties (the most important control in my opinion)
  3. If the wire transfer request is by phone or by fax, require the bank to call your organization back before the wire transfer is consummated
  4. The bank should require the use of unique passwords to access wire-transfer software; consider using a bank that provides bank token keys (small hand-held devices that generate unique identification numbers; these numbers are keyed into the bank software as a part of the transfer request)
  5. Restrict the bank accounts from which a wire transfer can be made (the organization may want to limit external wire transfers to just one bank account)
  6. Restrict certain bank accounts so that wire transfers can only be made to other bank accounts of the organization (e.g., transfer from operating bank account to payroll bank account)
  7. Have someone peruse the daily bank account activity (using online access); at a minimum, reconcile bank statements in a timely fashion (large organizations should consider reconciling bank accounts more frequently than once a month; some reconcile daily)
  8. Require sufficient documentation for all wire transfer journal entries; require a second-person review of these journal entries
  9. Consider using a dedicated computer for all wire transfers; do not use this computer for any other purpose (malware is often picked up by computers as they visit Internet websites)
  10. Use all bank-provided wire transfer controls
  11. Any transactions over a certain high dollar amount (e.g., $50,000) must have the approval of the business owner/CEO

Use Fraud Prevention Controls Offered by Banks

Not using controls offered by banks may make your organization liable should funds be stolen by hackers. One company sued its bank when hackers took $440,000 from its bank account with a wire transfer; the judge ruled against the company because it had opted out of control procedures offered by the bank. Also make sure your company uses appropriate firewall and antivirus protection.

Closing Words

If one person can make external wire transfers and journal entries to record those transactions, you have the makings of wire fraud–soon you may see that employee on Facebook, riding down the old Danube.

Video from Gary Zeune

You can see a news video about the nonprofit fraud mentioned above at Gary Zeune’s website: The Pros and The Cons. (If you have not heard Gary speak about fraud, you should do so. He does a great job.)

The AICPA Consulting Standards: Another Arrow in Your Quiver

Many CPAs don't know that these standards exist, but they can be quite helpful

I find that many CPAs aren’t aware of the AICPA Consulting Standards. So, here’s a post about them.

Are you ever asked to perform an atypical engagement (e.g., creating a schedule of water losses for a city)–and then you wonder “what professional standards should I follow?”

Audit standards? No, you’re not opining on anything.

Maybe the compilation and review standards? No, a schedule is not a financial statement.

How about agreed upon procedures? Well, no again–AUPs normally include tests and conclusions.

We need another arrow in our quiver!

AICPA Consulting Standards

Picture from AdobeStock.com

Most CPAs are familiar with compilation and review standards (Statement on Standards for Accounting and Review Services – SSARS) and audit standards (Statement on Auditing Standards – SAS) and even attestation standards (Statement on Standards for Attestation Engagements – SSAEs – commonly used for agreed upon procedures), but many are not familiar with the consulting standards (Statement on Standards for Consulting Services – SSCS).

Why?

I’m not really sure. But I seldom see consulting standard CPE classes. Yet many services are subject to this guidance.

AICPA Consulting Standards Primer

You might call the AICPA Consulting Standards the CPA’s swiss army knife.

AICPA Consulting Standards

What services fall under the consulting standards?

The consulting standards specifically address six areas:

  1. Consultations – e.g., reviewing a business plan
  2. Advisory services – e.g., assistance with strategic planning
  3. Implementation services – e.g., assistance with a merger
  4. Transaction services – e.g., litigation services
  5. Staff and other support services – e.g., controllership services
  6. Product services – e.g., providing packaged training services

CPAs often provide consulting services such as the following:

  • Consultations with regard to complex transactions
  • Fraud investigation services
  • Internal control services
  • Bankruptcy services
  • Divorce settlement services
  • Controllership services
  • Business plan preparation
  • Cash management
  • Software selection
  • Business disposition planning

When can I use the consulting standards?

Usually when the information will not be provided to a third party.

When performing work under the consulting standards, you are not attesting (providing comfort) on the work performed. Usually, you need to follow the SASs, SSARS, or SSAEs if you are attesting (providing comfort to an outside party).

Characteristics of a Consulting Engagement

  • Generally nonrecurring
  • Requires a CPA with specialized knowledge and skills
  • More interaction with client
  • Generally performed for the client (usually, no third party sees the information)

Consulting Work Paper Requirements

Consulting work paper requirements are minimal. Nevertheless, documentation is always wise.

The understanding with the client can be oral or in writing (I recommend the latter).

The consulting standards do not require the CPA to prepare work papers, but you should do so anyway – the work papers are the link between your work and your report. Also the general standards of the profession, contained in the AICPA Code of Professional Conduct, apply to all services performed by members. The general standards state:

Sufficient Relevant Data. Obtain sufficient relevant data to afford a reasonable basis for conclusions or recommendations in relation to any professional services performed.

Consulting Reports

The report content and format are up to you and your client.

No Opinion or Accountant’s Report

For consulting engagements, the CPA does not issue an opinion or any other attestation report (e.g., accountant’s report on agreed-upon procedures ).

Subject to Peer Review?

Are products created using the Consulting Standards subject to peer review? No.

Where Can I Find the AICPA Consulting Standards?

You can see the consulting standards here.

Photos above are courtesy of iStockphoto.com.

The Little Book of Local Government Fraud Prevention

Whether your government is small or large, this book provides guidance in reducing theft

Do you desire to fight fraud in governments? Or maybe you are just curious about how fraudsters get away with their wily schemes. See my book The Little Book of Local Government Fraud Prevention. You can purchase it on Amazon as a paperback. Also, the ebook is available as a Kindle download.

Local Government Fraud Prevention

Fraud occurs in local governments in a multitude of ways, yet many cities, counties, school systems, authorities, and other public entities are ill-prepared to prevent or detect its occurrence. Why is this so? Some governments place too much reliance on annual audits as a cure-all, but clean audit opinions don’t mean that fraud is not occurring. And some governments fail to understand how vulnerable they are–until it’s too late.

Why is local government fraud so common? Many small governments don’t have a sufficient number of employees to segregate accounting duties. It is also these smaller governments that place too much trust in their accounting personnel. This combination of a lack of segregation of duties and too much trust in key employees often leads to significant losses from theft.

The Little Book of Local Government Fraud Prevention provides several real-life stories of fraud. The stories will inform you about how local government employees steal. Then I provide you with prevention techniques to assist you in mitigating fraud risks. In one story, for example, the book shows how a single municipal employee stole over $53 million dollars, all from a city of just 16,000 citizens.

If you audit governments, you will find this book helpful in pinpointing common areas where governmental fraud occurs. The book also includes fraud audit checklists and fraud detection procedures. Whether you are an internal or external auditor, you will find fresh ideas for prevention and detection.

The Little Book of Local Government Fraud Prevention will assist you if you are a:

1. Local government accounting employee
2. Local government elected official
3. Local government auditor
4. Local government attorney
5. Certified Public Accountant
6. Certified Fraud Examiner

Even if you don’t work with governments, you’ll find this book useful. I provide fraud prevention steps for transaction cycles such as billing and collections, payables and expenses, payroll, and capital assets.

Together we can bring down the risk of fraud and corruption in our local governments. Come join the team. We’ll all be better for it.

If you don’t desire to spend money on the book, here’s a free list of controls.

The What and Why of Auditing: The Auditor’s Responsibility for Fraud

What is an auditor's responsibility for fraud in a financial statement audit?

What is an auditor’s responsibility for fraud in a financial statement audit? Today, I’ll answer that question. Let’s take a look at the following:

  • Auditor’s responsibility for fraud
  • Turning a blind eye to fraud
  • Signs of auditor disregard for fraud
  • Incentives for fraud
  • Discovering fraud opportunities
  • Inquiries required by audit standards
  • The accounting story and big bad wolves
  • Documenting control weaknesses
  • Brainstorming and planning your response to fraud risk 
Auditor's Responsibility for Fraud

Picture is from AdobeStock.com

Auditor’s Responsibility for Fraud

I still hear auditors say, “We are not responsible for fraud.” But are we not? We know that the detection of material misstatements—whether caused by error or fraud—is the heart and soul of an audit. So writing off our responsibility for fraud is not an option. But auditors often turn a blind eye to it.

Turning a Blind Eye to Fraud

Why do auditors not perceive fraud risks? 

Here are a few reasons:

  • We don’t understand fraud, so we avoid it
  • We don’t know how to look for control weaknesses
  • We believe that auditing the balance sheet is enough

Think of these reasons as an attitudea poor one—regarding fraud. This disposition manifests itself—in the audit file—with signs of disregard for fraud.

Signs of Auditor Disregard for Fraud

A disregard for fraud appears in the following ways:

  • Asking just one or two questions about fraud
  • Limiting our inquiries to as few people as possible (maybe even just one)
  • Discounting the potential effects of fraud (even after known theft occurs)
  • Performance of walkthroughs do not occur 
  • We don’t conduct brainstorming sessions and window-dress related documentation
  • Our files reflect no responses to brainstorming and risk assessment procedures
  • Our files contain vague responses to the brainstorming and risk assessment (e.g., “no means for fraud to occur; see standard audit program” or “company employees are ethical; extended procedures are not needed”)
  • The audit program doesn’t change though new control weaknesses are noted

In effect, auditors—at least some—dismiss the possibility of fraud, relying on a balance sheet approach.

So how can we understand fraud risks and respond to them? First, let’s look at fraud incentives.

Incentives for Fraud

The reasons for theft vary by each organization, depending on the dynamics of the business and people who work there. Fraudsters can enrich themselves indirectly (by cooking the books) or directly (by stealing).

Fraud comes in two flavors:

  1. Cooking the books (intentionally altering numbers)
  2. Theft

Cooking the Books

Start your fraud risk assessment process by asking, “Are there any incentives to manipulate the financial statement numbers.” For example, does the company provide bonuses or promote employees based on profit or other metrics? If yes, an employee can indirectly steal by playing with the numbers. Think about it. The chief financial officer can inflate profits with just one journal entry—not hard to do. While false financial statements is a threat, the more common fraud is theft.

Theft

If employees don’t receive compensation for reaching certain financial targets, they may enrich themselves directly through theft. But employees can only steal if the opportunity is present. And where does opportunity come from? Weak internal controls. So, it’s imperative that auditors understand the accounting system and—more importantly—related controls. 

Discovering Fraud Opportunities

My go-to procedure in gaining an understanding of the accounting system and controls is walkthroughs.  Since accounting systems are varied, and there are no “forms” (practice aids) that capture all processes, walkthroughs can be challenging. So, we may have to “roll up our sleeves,” and “get in the trenches”—but the level of the challenge depends on the complexity of the business.

For most small businesses, performing a walkthrough is not that hard. Pick a transaction cycle; start at the beginning and follow the transaction to the end. Ask questions and note who does what. Inspect the related documents. As you do, ask yourself two questions:

  1. What can go wrong?
  2. Will existing control weakness allow material misstatements?

In more complex companies, break the transaction cycle into pieces. You know the old question, “How do you eat an elephant?” And the answer, “One bite at a time.” So, the process for understanding a smaller company works for a larger one. You just have to break it down—and allow more time.

Discovering fraud opportunities requires the use of risk assessment procedures such as observations of controls, inspections of documents and inquiries. Of the three, the more commonly used is inquiries.

Inquiries Required by Audit Standards

Audit Standards (AU-C 240) state that we should inquire of management regarding:

  • Management’s assessment of the risk that the financial statements may be materially misstated due to fraud, including the nature, extent, and frequency of such assessments
  • Management’s process for identifying, responding to, and monitoring the risks of fraud in the entity, including any specific risks of fraud that management has identified or that have been brought to its attention, or classes of transactions, account balances, or disclosures for which a risk of fraud is likely to exist
  • Management’s communication, if any, to those charged with governance regarding its processes for identifying and responding to the risks of fraud in the entity
  • Management’s communication, if any, to employees regarding its views on business practices and ethical behavior
  • The auditor should make inquiries of management, and others within the entity as appropriate, to determine whether they have knowledge of any actual, suspected, or alleged fraud affecting the entity
  • For those entities that have an internal audit function, the auditor should make inquiries of appropriate individuals within the internal audit function to obtain their views about the risks of fraud; determine whether they have knowledge of any actual, suspected, or alleged fraud affecting the entity; whether they have performed any procedures to identify or detect fraud during the year; and whether management has satisfactorily responded to any findings resulting from these procedures

Notice that AU-C 240 requires the auditor to ask management about its procedures for identifying and responding to the risk of fraud. If management has no method of detecting fraud, might this be an indicator of a control weakness? Yes. What are the roles of management and auditors regarding fraud?

  • Management develops control systems to lessen the risk of fraud. 
  • Auditors review the accounting system to see if fraud-prevention procedures are designed and operating appropriately.

So, the company creates the accounting system, and the auditor gains an understanding of the same. As auditors gain an understanding of the accounting system and controls, we are putting together the pieces of a story.

The Accounting Story and Big Bad Wolves

Think of the accounting system as a story. Our job is to understand the narrative of that story. As we (attempt to) describe the accounting system, we may find missing pieces. When we do, we’ll go back and ask more questions to make the story complete.

The purpose of writing the storyline is to identify any “big, bad wolves.”

Auditor's Responsibility for Fraud

Picture is from AdobeStock.com

The threats in our childhood stories were easy to recognize—the wolves were hard to miss. Not so in the walkthroughs. It is only in connecting the dots—the workflow and controls—that the wolves materialize. So, how long is the story? That depends on the size of the organization.

Scale your documentation. If the transaction cycle is simple, the documentation should be simple. If the cycle is complex, provide more details. By focusing on control weaknesses that allow material misstatements, you’ll avoid unneeded—and distracting—details.

Documenting Control Weaknesses

I summarize the internal control strengths and weaknesses within the description of the system and controls and highlight the wording “Control weakness.” For example:

Control weakness: The accounts payable clerk (Judy Jones) can add new vendors and can print checks with digital signatures. If effect, she can create a new vendor and have a check sent to that provider without anyone else’s involvement.

Highlighting weaknesses makes them more prominent. Then I can use the identified fraud opportunities to brainstorm about how theft might occur and to develop my responses to the threats.

Brainstorming and Planning Your Responses 

Now, you are ready to brainstorm about how fraud might occur and to plan your audit responses.

The risk assessment procedures—discussed above and in my prior postprovide the fodder for the brainstorming session. 

Armed with knowledge about the company, the industry, fraud incentives, and the control weaknesses, we are ready to be creative. 

In what why are we to be creative? We think like a thief. By thinking like a fraudster, we unearth ways that stealing might occur. And why? So we can audit those possibilities. And this is the reason for the fraud risk assessment procedures in the first place.

What we discover in the risk assessment stage informs the audit plan—in other words, it has bearing upon the audit programs.

The Auditor’s Responsibility for Fraud

In conclusion, I started this post saying I’d answer the question, “What is an auditor’s responsibility for fraud?” Hopefully, you now have a better understanding of the fraud-related procedures we are to perform. But to understand the purpose of these procedures, look at the language in a standard audit opinion:

The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion.

The purpose of fraud risk assessments is not to opine on internal control systems or to discover every fraud. It is to assist the auditor in determining where material misstatements—due to fraud—might occur.

The What and Why of Auditing: A Blog Series About Basics

Have you been following my series of posts: The What and Why of Auditing? If not, you may want to review the prior posts:

Also subscribe (below) to my blog to receive future installments in this series (we have several more coming). This series is a great way for seasoned auditors to refresh their overall audit knowledge and for new auditors to gain a better understanding of the audit process. 

Ten Most Popular CPA Scribo Blog Posts for 2016

10 most shared posts during 2016

Well, 2016 is in the books for CPA Scribo.

Here are the top ten 2016 posts (starting with number 10 and moving to number 1)–based on your social shares.

CPA Scribo

Picture from AdobeStock.com

Top 10 CPA Scribo Posts

 

10. Assessing Audit Control Risk at High (and Saving Time)

9. Getting More Done with My Favorite Accountant’s Device

8. How Honest People Steal

7. A List of Online Resources for CPAs

6. How to Add Value to Audits

5. How to Steal by Double Paying a Vendor

4. 25 Ways Fraud Happens

3. How $16 Million was Stolen from a Bakery

2. Seven Deadly Audit Sins

and drum roll…..

1.  Why Should Auditors Perform Audit Walkthroughs

Your Ideas for 2017

If you have an accounting or auditing idea that you’d like for me to address in 2017, please let me know–post a comment. Thanks.

Have You Checked Out “The Pros and The Cons” Web Site?

Gary Zeune offers interesting perspectives on white collar crime

If you’ve never seen The Pros and The Cons website, you should. My friend, Gary Zeune, provides fraud prevention information from the perspective of white collar prevention specialists–and from the dark side (those who steal).

The Pros and The Cons

Picture is from AdobeStock.com

Understanding how fraudsters think and act may be your greatest asset in stopping theft.

Gary provides fraud prevention articles, books, and videos on his website. He has a wealth of knowledge and a strong network of Pros and Cons working with him. If you haven’t heard Gary speak, seek out the opportunity to do so. You can contact Gary at gzfraud@TheProsAndTheCons.com. He and Dennis Dycus (who also works with Gary) are two of my favorite white collar crime speakers.

Gary provides online CPE classes, so if you need some interesting fraud prevention classes here at year-end, check his website out here.

Key Highlights from the 2016 Fraud Survey: Association of Certified Fraud Examiners

The Association of Certified Fraud Examiners conducts a biennial fraud survey titled Report to the Nations on Occupational Fraud and Abuse.

Fraud Survey

Picture from AdobeStock.com

Key Fraud Survey Statistics

Here are some statistics from the 2016 report:

  • The most common detection method is tips — 39% of fraud was detected by tips
  • The median loss per fraud case is $150,000
  • 41% of fraud cases are not referred to law enforcement (mainly due to fear of bad publicity)
  • The typical organization loses 5% of its revenue to fraud
  • Large organizations are more apt to use antifraud programs than small ones
  • Banking, governments and manufacturing suffer the largest losses (and in that order)
  • The average fraud exists 18 months before detection
  • Fraud schemes lasting more than 5 years caused a median loss of $850,000
  • 82% of the entities in the survey underwent audits
  • 95% of the time the fraudster took efforts to conceal the theft
  • Fraud losses increase with the number of people involved in the theft
  • Most fraudsters are first-time offenders (with only 5% having been previously convicted of theft)
  • The typical fraudster is:
    • Male (69%),
    • Middle-aged (30 to 50 years of age),
    • Educated (60% had college degrees), and
    • Works with the organization for a number of years
  • 19% of the frauds involved owners or executives resulting in median losses of $703,000
  • Only 8% of the frauds were committed by an employee with less than one year of employment
  • Billing schemes such as fictitious vendors continue to cause significant losses
  • 23% of the fraud cases were for more than $1 million dollars

See the complete ACFE survey here.

See my fraud prevention book on Amazon here.

Are You Looking for an Easy-to-Understand Fraud Prevention Book?

Do you lie awake at night wondering if theft is occurring in your organization?

Do you lie awake at night wondering if theft is occurring in your organization? Are you looking for an easy-to-understand guide to fraud prevention?

Find simple but insightful guidance in The Little Book of Local Government Fraud Prevention.

Written by a Certified Public Accountant and a Certified Fraud Examiner with over thirty years experience, you’ll find loads of great ideas to stop fraud dead in its tracks.

Fraud Prevention Book

How This Fraud Prevention Book Empowers You

While the book focuses on local government fraud, you’ll find fraud prevention techniques for nonprofits and small businesses as well.

The books enables you to:

  • Understand what fraud is (and what it is not)
  • Implement powerful fraud prevention techniques
  • Recognize the red flags of theft
  • Understand how frauds occur at the transaction level (e.g., accounts payable fraud)

You don’t have to be a CPA to understand this book–or to use the guidance. The book is useful to laypeople and fraud prevention experts alike.

You will also find transaction-level checklists for implementing internal controls (for example, questions prompting you to evaluate your payroll process).

Be empowered to guard your organization from fraud. See the book on Amazon by clicking here.

Praise for the Book

Here are a few comments from Amazon Reviews:

Bought it this morning and read it all in one sitting. It was clear, concise and kept my attention with practical examples. I often find that some of the books I read on fraud topics are abstract and confusing. This one was just the opposite. Thanks for authoring this book Charles.

Christopher Arsenault

Charles captures key controls required not only in government entities, but all entities and illustrates what can happen in absence of those controls. If you are an auditor, accountant, manager, or board member you will find this information useful.

Donald Vieira

The book highlights several real world case studies of fraud and abuse. This book describes various levels of controls, separation of duties and the value of a Certified Fraud Examiner. Great book!

Paul