Seventh Art’s Perspective on Ethical Conduct and Corporate Irresponsibility : Financiers and Accountants

This book discusses the possibility of corporate professionals―specifically accountants, bankers, and financiers―being influenced by the seventh art, i.e. cinema, and acting out fraudulent actions depicted in the cinematic world in the real life situations. It is widely known that real world scenarios influence cinema. Through a field study, this book evaluates if there is a reciprocal effect on events in the real world being impacted by scenarios depicted in movies. A questionnaire was designed in order to understand the perception of business ethics among above-mentioned professionals and if such a perception was formed or influenced due to observed behaviors from movies. The book concludes with an assessment of the power of visual art in affecting real world behaviors and outlines strategies for recognizing and preventing such behaviors leading to unethical conduct and corporate irresponsibility. The essential resource for fraud examiners around the globe The International Fraud Handbook provides comprehensive guidance toward effective anti-fraud measures around the world. Written by the founder and chairman of the Association of Certified Fraud Examiners (ACFE), this book gives examiners a one-stop resource packed with authoritative information on cross-border fraud investigations, examination methodology, risk management, detection, prevention, response, and more, including new statistics from the ACFE 2018 Report to the Nations on Occupational Fraud and Abuse that reveal the prevalence and real-world impact of different types of fraud. Examples and detailed descriptions of the major types of fraud demonstrate the various manifestations examiners may encounter in organizations and show readers how to spot the "red flags" and develop a robust anti-fraud program. In addition, this book includes jurisdiction-specific information on the anti-fraud environment for more than 35 countries around the globe. These country-focused discussions contributed by local anti-fraud experts provide readers with the information they need when conducting cross-border engagements, including applicable legal and regulatory requirements, the types and sources of information available when investigating fraud, foundational anti-fraud frameworks, cultural considerations, and more. The rising global economy brings both tremendous opportunity and risks that are becoming increasingly difficult to manage. As a result, many jurisdictions are attempting to strengthen their anti-fraud environments — whether through stricter anti-bribery laws or more stringent risk management guidelines — but a lack of uniformity in legal rules and guidance can be challenging for organizations doing business abroad. This book helps examiners mitigate fraud in their own organizations, while taking the necessary steps to prevent potential legal exposure. Understand the different types of fraud, their common elements, and their impacts across an organization Conduct a thorough risk assessment and implement effective response and control activities Learn the ACFE's standard investigation methodology for domestic and cross-border fraud investigations Explore fraud trends and region-specific information for countries on every continent As levels of risk increase and the risks themselves become more complex, the International Fraud Handbook gives examiners a robust resource for more effective prevention and detection. Delve into the mind of a fraudster to beat them at their own game Corporate Fraud Handbook details the many forms of fraud to help you identify red flags and prevent fraud before it occurs. Written by the founder and chairman of the Association of Certified Fraud Examiners (ACFE), this book provides indispensable guidance for auditors, examiners, managers, and criminal investigators: from asset misappropriation, to corruption, to financial statement fraud, the most common schemes are dissected to show you where to look and what to look for. This new fifth edition includes the all-new statistics from the ACFE 2016 Report to the Nations on Occupational Fraud and Abuse , providing a current look at the impact of and trends in fraud. Real-world case studies submitted to the ACFE by actual fraud examiners show how different scenarios play out in practice, to help you build an effective anti-fraud program within your own organization. This systematic examination into the mind of a fraudster is backed by practical guidance for before, during, and after fraud has been committed; you'll learn how to stop various schemes in their tracks, where to find evidence, and how to quantify financial losses after the fact. Fraud continues to be a serious problem for businesses and government agencies, and can manifest in myriad ways. This book walks you through detection, prevention, and aftermath to help you shore up your defenses and effectively manage fraud risk. Understand the most common fraud schemes and identify red flags Learn from illustrative case studies submitted by anti-fraud professionals Ensure compliance with Sarbanes-Oxley and other regulations Develop and implement effective anti-fraud measures at multiple levels Fraud can be committed by anyone at any level—employees, managers, owners, and executives—and no organization is immune. Anti-fraud regulations are continually evolving, but the magnitude of fraud's impact has yet to be fully realized. Corporate Fraud Handbook provides exceptional coverage of schemes and effective defense to help you keep your organization secure. Anti-Fraud Policy -- Whistle-Blower Policy -- Risk Management, Internal Controls, and Fraud -- Fraud and Risk Management -- Fraud and Internal Controls -- Responsibilities for the Anti-Fraud Program -- Board of Directors -- Audit Committee -- Executive and Senior Management -- Middle Management -- Internal Auditors -- Risk and Control Personnel -- Staff Members -- Fraud Control Activities -- Personnel-Focused Controls -- Process- and Policy-Focused Controls -- Examples of Scheme-Specific Control Activities -- Fraud Response -- Disciplining the Perpetrator(s) -- Identifying and Remedying the Underlying Issues -- Communicating about the Fraud -- Notes -- Chapter 5 Fraud Investigation -- Methodology -- Creating a Fraud Response Plan -- Assessing the Need for an Investigation -- Preparing for the Investigation -- Establishing Predication -- Developing a Plan -- Assembling the Investigation Team -- Further Defining the Goal or Purpose of the Investigation -- Notifying Relevant Parties -- Developing a Fraud Theory -- Determining the Scope of the Investigation -- Finalize the Case Plan -- Applying the Fraud Examination Methodology -- Collecting and Analyzing Evidence -- Interviewing Witnesses and Suspects -- Reporting the Case -- Working with Law Enforcement -- Working with Foreign Governments -- Issues in Conducting Cross-Border Fraud Investigations -- Cost -- Language Differences -- Cultural Differences -- Differing Laws -- High-Risk Regions -- Lack of Access to Information -- Logistical Issues with Cross-Border Investigations -- Notes -- Chapter 6 Interviewing Witnesses and Suspects -- Planning and Preparing for an Interview -- Understanding the Interview's Role in the Investigation -- Understanding the Interviewee -- Legal Considerations -- Offenses and Points to Prove or Disprove -- Practical Arrangements -- Types of Interviews -- Interviews by Subject Anti-Fraud Programs -- Considerations in Fraud Investigations -- Chapter 9 Eastern Europe and Western/Central Asia -- Regional Fraud Trends -- Bulgaria -- Contributor -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Czech Republic -- Contributor -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Poland -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Slovenia -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Chapter 10 Latin America and the Caribbean -- Regional Fraud Trends -- Brazil -- Contributor -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Chile -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Mexico -- Contributor -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Peru -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Chapter 11 Middle East and North Africa -- Regional Fraud Trends -- Cyprus -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Egypt -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Jordan -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations Other Legal Actions That Could Arise during Private Investigations -- Data Privacy -- Notes -- Chapter 3 Fraud Risk Assessment -- What Is Fraud Risk? -- Factors That Influence Fraud Risk -- Types of Fraud Risks -- What Is a Fraud Risk Assessment? -- Benefits of a Fraud Risk Assessment -- Who Is Responsible for the Fraud Risk Assessment? -- Designating the Best Sponsor -- Who Should Conduct the Fraud Risk Assessment? -- Preparing for the Fraud Risk Assessment -- Identify the Information to Be Gathered -- Determine the Best Techniques to Use in Conducting the Fraud Risk Assessment -- Obtain the Sponsor's Agreement on the Work to Be Performed -- Educate Employees and Openly Promote the Process -- Conducting the Fraud Risk Assessment -- Identify Potential Inherent Fraud Risks and Schemes -- Assess the Likelihood of Occurrence of the Identified, Inherent Fraud Risks -- Assess the Impact of the Inherent Fraud Risks to the Organization -- Evaluate Which Parties Are Most Likely to Commit Fraud -- Identify and Map Existing Internal Controls to the Relevant Inherent Fraud Risks -- Evaluate Whether the Identified Controls Are Operating Effectively and Efficiently -- Identify, Evaluate, and Respond to Residual Fraud Risks -- Reporting the Results of the Fraud Risk Assessment -- Report Objective, Not Subjective, Results -- Keep It Simple -- Focus on What Really Matters -- Identify Actions That Are Clear and Measurable -- Making an Impact with the Fraud Risk Assessment -- Begin a Dialogue across the Company -- Look for Fraud in High-Risk Areas -- Hold Responsible Parties Accountable for Progress -- Keep the Assessment Alive and Relevant -- Modify or Create the Code of Conduct, Ethics Policy, and Anti-Fraud Policy -- Monitor Key Controls -- Note -- Chapter 4 Preventing and Detecting Fraud -- Governance and Oversight -- Creating an Anti-Fraud Culture Interviews by Purpose -- Interviewing Strategies -- Types of Questions -- Interview Methodologies -- Recognizing Signs of Deception -- Verbal Signs of Deception -- Nonverbal Signs of Deception -- Additional Interview Steps -- Sensitive Issues and Questions -- Obtaining Confessions -- Follow-up Interviews -- Part II -- Chapter 7 Asia-Pacific Region -- Regional Fraud Trends -- Australia -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- China -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Japa n -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Malaysia -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- New Zealand -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Philippines -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Singapore -- Contributor -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- South Korea -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Taiwan -- Contributors -- Sources of Information -- Legal and Regulatory Environment -- Anti-Fraud Programs -- Considerations in Fraud Investigations -- Chapter 8 Canada -- Regional Fraud Trends -- Canada -- Contributor -- Sources of Information -- Legal and Regulatory Environment Cover -- Title Page -- Copyright -- Contents -- Preface -- About the ACFE -- Chapter 1: Introduction -- Defining Occupational Fraud and Abuse -- Research in Occupational Fraud and Abuse -- 2016 Report to the Nations on Occupational Fraud and Abuse -- Notes -- Part I: Asset Misappropriations -- Chapter 2: Introduction to Asset Misappropriations -- Overview -- Definition of Assets -- How Asset Misappropriations Affect Books of Account -- Notes -- Chapter 3: Skimming -- Overview -- Skimming Data from the ACFE 2015 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 -- Chapter 4: Cash Larceny -- Overview -- Cash Larceny Data from the ACFE 2015 Global Fraud Survey -- Incoming Cash -- Cash Larceny from the Deposit -- Miscellaneous Larceny Schemes -- Detection -- Prevention -- Note -- Chapter 5: Check Tampering -- Overview -- Check Tampering Data from the ACFE 2015 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 -- Notes -- Chapter 6: Register Disbursement Schemes -- Overview -- Register Disbursement Data from the ACFE 2015 Global Fraud Survey -- False Refunds -- False Voids -- Concealing Register Disbursements -- Detection -- Prevention -- Note -- Chapter 7: Billing Schemes -- Overview -- Billing Scheme Data from the ACFE 2015 Global Fraud Survey -- Shell Company Schemes -- Non-Accomplice Vendor Schemes -- Personal Purchases with Company Funds -- Detection -- Prevention -- Note -- Chapter 8: Payroll and Expense Reimbursement Schemes -- Overview Intro -- International Fraud Handbook -- Contents -- Preface -- Acknowledgments -- About the ACFE -- Part I -- Chapter 1 Introduction -- What Is Fraud? -- Components of Fraud -- What Factors Lead to Fraud? -- The Fraud Triangle -- Control Weaknesses -- The Impact of Fraud -- All Organizations Are Susceptible to Fraud -- The High Cost of Occupational Fraud -- The Indirect Costs -- Types of Fraud Affecting Organizations -- Occupational Fraud -- External Fraud -- Notes -- Chapter 2 Legal Issues Pertaining to Fraud -- Types of Legal Systems -- Religious and Secular Systems -- Common Law and Civil Law Systems -- Definition of Evidence -- Three Basic Forms of Evidence -- Direct versus Circumstantial Evidence -- Admissibility of Evidence -- Relevant -- Authentic -- Admissibility of Testimonial Evidence -- Examples of Common Evidentiary Rules in Adversarial Proceedings -- The Rule against Character Evidence -- The Rule against Opinion Testimony -- The Rule against Hearsay -- Chain of Custody -- Privileges and Protections -- Legal Professional Privileges -- Legal Work Privileges -- Self-Evaluation Privilege -- Marital Privilege -- Parent-Child Privilege -- Law Enforcement Privilege to Withhold the Identity of an Informant -- Accountant-Client Privilege -- Other Privileges -- Judicial Treatment of Privileges from Foreign Jurisdictions -- Individual Rights during Examinations -- Employees' Duties and Rights -- Employees' Duty to Cooperate -- Duty to Preserve Information Relevant to Litigation -- Employees' Contractual Rights -- Whistle-Blower Protections -- Employees' Privacy Rights in the Workplace -- Individuals' Rights and Obligations under Criminal Law -- The Law Relating to Government Search and Seizure -- Search Warrants -- Investigations in Private Actions -- Defamation -- Privacy Laws "Investigating white-collar crime is like any other investigation concerned with past events. However, a number of characteristics require a contingent approach to these investigations. This book describes the process of conducting private internal investigations by fraud examiners and presents a number of reports from the United States, Sweden and Norway.It evaluates a number of internal investigation reports to reflect on the practice of fraud examinations. Empirical studies provide a basis to reflect theoretically on practice improvements for fraud examiners. Rather than presenting normative recommendations based on ideal or stereotype situations so often found in existing books, this book develops guidelines based on empirical study of current practice. Internal investigations should uncover the truth about misconduct or crime without damaging the reputation of innocent employees. Typical elements of an inquiry include collection and examination of written and recorded evidence, interviews with suspects and witnesses, data in computer systems, and network forensics. Internal inquiries may take many forms, depending upon the nature of the conduct at issue and the scope of the investigation. There should be recognition at the outset of any investigation that certain materials prepared during the course of the investigation may eventually be subject to disclosure to law enforcement authorities or other third parties. The entire investigation should be conducted with an eye towards preparing a final report.As evidenced in this book, private fraud examiners take on complicated roles in private internal investigations and often fail in their struggle to reconstruct the past in objective ways characterized by integrity and accountability."--Provided by publisher Investigating white-collar crime is like any other investigation concerned with past events. However, a number of characteristics require a contingent approach to these investigations. This book describes the process of conducting private internal investigations by fraud examiners and presents a number of reports from the United States, Sweden and Norway. It evaluates a number of internal investigation reports to reflect on the practice of fraud examinations. Empirical studies provide a basis to reflect theoretically on practice improvements for fraud examiners. Rather than presenting normative recommendations based on ideal or stereotype situations so often found in existing books, this book develops guidelines based on empirical study of current practice. Internal investigations should uncover the truth about misconduct or crime without damaging the reputation of innocent employees. Typical elements of an inquiry include collection and examination of written and recorded evidence, interviews with suspects and witnesses, data in computer systems, and network forensics. Internal inquiries may take many forms, depending upon the nature of the conduct at issue and the scope of the investigation. There should be recognition at the outset of any investigation that certain materials prepared during the course of the investigation may eventually be subject to disclosure to law enforcement authorities or other third parties. The entire investigation should be conducted with an eye towards preparing a final report. As evidenced in this book, private fraud examiners take on complicated roles in private internal investigations and often fail in their struggle to reconstruct the past in objective ways characterized by integrity and accountability Through analysis of data held by the National Crime Agency on organised crime groups, and in-depth analysis of qualitative interviews with convicted fraudsters and enforcement professionals, this detailed study fills a significant gap in the contemporary literature on organised crime groups involved in fraud. Throughout the chapters, the perspective of convicted offenders and those involved in its policing are juxtaposed to show the ease of committing fraud from the perspective of offenders on the one hand, and the investigative challenges experienced by law enforcement officers on the other. May and Bhardwa's insights shed light on offender motivations, routes into fraud and organised crime, and the nature and shape of organised crime groups and their operations. Alongside the offender perspective the law enforcement interviews provide a unique interpretation of the procedural and legislative weaknesses that appear to allow this type of offender to make considerable financial gain. The key recommendations based on empirical findings will greatly benefit those interested in understanding the links between fraud and organised crime in the UK and those seeking to improve enforcement efforts. .-- Provided by publisher Through analysis of data held by the National Crime Agency on organised crime groups, and in-depth analysis of qualitative interviews with convicted fraudsters and enforcement professionals, this detailed study fills a significant gap in the contemporary literature on organised crime groups involved in fraud. Throughout the chapters, the perspective of convicted offenders and those involved in its policing are juxtaposed to show the ease of committing fraud from the perspective of offenders on the one hand, and the investigative challenges experienced by law enforcement officers on the other. May and Bhardwa?s insights shed light on offender motivations, routes into fraud and organised crime, and the nature and shape of organised crime groups and their operations. Alongside the offender perspective the law enforcement interviews provide a unique interpretation of the procedural and legislative weaknesses that appear to allow this type of offender to make considerable financial gain. The key recommendations based on empirical findings will greatly benefit those interested in understanding the links between fraud and organised crime in the UK and those seeking to improve enforcement efforts.#xE000 This book considers ethical issues arising in professional and business settings and the role of individuals making decisions and coping with moral dilemmas. Readers can benefit from engagement in filmic narratives, as a simulated environment for developing a stance towards ethical challenges. The book starts by elaborating on critical thinking and on normative ethical theories, subsequently presenting the structure and cinematic elements of narrative film. These two avenues are tools for evaluating films and for discussions on various ethical problems in contemporary business, including: the corporate and banking financial machinations (greed, fraud, social responsibility); workplace ethical challenges (harassment, violence, inequity, inequality); professional and business ethical challenges (corruption, whistleblowing, outsourcing, downsizing, competition, and innovation); environmental and social issues; international business and human rights; and personal responsibility and identity challenges due to career pressures, loss of privacy and cyber harassment, and job structure changes in light of changing technology. This book considers ethical issues arising in professional and business settings and the role of individuals making decisions and coping with moral dilemmas. It starts by elaborating on critical thinking and on normative ethical theories, subsequently presenting the structure and cinematic elements of narrative film. These two avenues are tools for evaluating films and for discussions on various ethical problems in contemporary business, including: the corporate and banking financial machinations (greed, fraud, social responsibility); workplace ethical challenges (harassment, violence, inequity, inequality); professional and business ethical challenges (corruption, whistleblowing, outsourcing and downsizing); and personal responsibility and identity challenges due to career pressures, loss of privacy and cyber harassment, and job structure changes in light of changing technology. Readers can benefit from engagement in filmic narratives, as a simulated environment for developing a stance towards ethical challenges. Introduction -- Part I: Asset Misappropriations. Introduction To Asset Misappropriations -- Skimming -- Cash Larceny -- Check Tampering -- Register Reimbursement Schemes -- Billing Schemes -- Payroll And Expense Reimbursement Schemes -- Inventory And Other Noncash Assets -- Part Ii: Corruption. Bribery -- Conflicts Of Interest -- Part Iii: Financial Statement Fraud. Accounting Principles And Fraud -- Financial Statement Fraud Schemes -- Occupational Fraud And Abuse: The Big Picture. Joseph T. Wells. Includes Bibliographical References (pages 391-398) And Index. "Corporate Fraud Handbook provides an insider's look into the most prevalent fraud schemes used by employees, owners, managers, and executives. Each scheme is illustrated with real-life case studies submitted to the Association of Certified Fraud Examiners (ACFE) by certified fraud examiners who aided in the case resolutions."--BOOK JACKET.