Audit

The smoke detector

Howard Wilkinson smelled smoke when he was a trader for the Estonian branch of Danske Bank. The fire he discovered is a $230 billion debacle — possibly the largest-ever money-laundering scheme. Wilkinson’s investigative skills could help accelerate European reforms.

Anti-money laundering for registered broker-dealers

The fact that the SEC continues to pursue AML violations, and in one instance sought a $23 million penalty, emphasizes that broker-dealers have a continuing incentive to comply with AML obligations.

Don't take this fraud for granted

The U.S. federal government disburses billions in grants annually to worthy recipients. These awards aim to make life better by promoting research and development, finding new disease treatments plus improving education, infrastructure, housing and much more. Of course, big money attracts fraudsters. Here we examine three main types of schemes and how fraud examiners can prevent and deter grant fraud. We also dissect the government’s latest anti-fraud guidance.

Create your luck to fight fraud

Fraud examiners often stumble upon unsought information. Here’s how to train yourself to find that info so you can detect other potential frauds, obtain evidence, recover fraud-related losses, identify and correct deficiencies, and more.

What is Benford’s Law (Nano Self-Study)

Identifying potential fraud within large data sets can be challenging. In this course, you will learn how to identify anomalies and potential fraud in large data sets using the theory behind Benford’s Law.

How to Prevent Accounting Fraud Using the Pareto Principle

Charging anti-fraud costs to investigated business units might backfire

Consider keeping investigative charges within corporate security and other anti-fraud functions. You might then increase reporting of fraud and other crimes.

Ripple effects of fraud

We often focus on a fraud’s perpetrator, the conditions that allowed the fraud, plus the victim business and its owners. In this case, the authors cover the bases but also discuss the forgotten aspect: how the fraud affects so many more who live in the concentric circles around the fraudster.

Trust us ... we wouldn't lie to you

An accounting firm took on a new client from the advice of a good friend, but it didn’t conduct proper due diligence. Big mistake. During an inventory, the client’s CEO repeatedly lied to the author — a fraud examiner — and the external auditors he worked with. Here’s how to avoid fraudulent clients and keep your sanity.

A practical take on fortifying anti-fraud training

In my November/December 2017 column I wrote that academia should expand traditional forensic accounting programs so our future professionals can respond well to contemporary fraud issues. Many universities do include additional training on identifying and understanding fraudulent activities and are hiring more instructors with practical experience.