ForensicAccounting v
andFraud
v
Investigation 3rd Edition
v
Howard Silverstone
v v Michael Sheetz
v v
Stephen Pedneault
v Frank Rudewicz
v
CPE Edition v
Distributed by The CPE Store
v v v v
www.cpestore.com
1-800-910-2755
v
,Forensic Accounting and Fr
v v v
aud Investigation
v
CPE Edition v
Stephen Pedneaultv v
Frank Rudewicz Mi
v v
chael Sheetz Howar
v v
d Silverstone
v
,Copyrightv©v2012vbyvJohnvWileyv&vSons,vInc.vAllvrightsvreserved.
Novpartvofvthisvpublicationvmayvbevreproduced,vstoredvinvavretrievalvsystem,vorvtransmittedvinvanyvformvorvbyvanyvmea
ns,velectronic,vmechanical,vphotocopying,vrecording,vscanning,vorvotherwise,vexceptvasvpermittedvundervSectionv107vo
rv108vofvthev1976vUnitedvStatesvCopyrightvAct,vwithoutvthevpriorvwrittenvpermissionvofvthevPublisher.
CPEvEditionvpublishedvbyvThevCPEvStore,vInc.,vwww.cpestore.com,v1-800-910-
2755.vReprintedvwithvpermissionvfromvJohnvWileyv&vSons,vInc.v ThevCoursevInformation,vLearningvObjectives,vRevi
ewvQuestionsvandvReviewvAnswersvarevthevsolevpropertyvofvThevCPEvStorevandvdovnotvappearvinvthevoriginalveditionv
ofvthevtextvpublishedvbyvJohnvWileyv&vSons,vInc.vAbove-
mentionedvitemsvarevCopyrightv©v2012vbyvThevCPEvStore,vInc.vAllvrightsvreserved.
LimitvofvLiability/DisclaimervofvWarranty:vWhilevthevpublishervandvauthorvhavevusedvtheirvbestveffortsvinvpreparingvt
hisvbook,vtheyvmakevnovrepresentationsvorvwarrantiesvwithvrespectvtovthevaccuracyvorvcompletenessvofvthevcontentsvofvt
hisvbookvandvspecificallyvdisclaimvanyvimpliedvwarrantiesvofvmerchantabilityvorvfitnessvforvavparticularvpurpose.vNovw
arrantyvmayvbevcreatedvorvextendedvbyvsalesvrepresentativesvorvwrittenvsalesvmaterials.vThevadvicevandvstrategiesvcont
ainedvhereinvmayvnotvbevsuitablevforvyourvsituation.vYouvshouldvconsultvwithvavprofessionalvwherevappropriate.vNeith
ervthevpublishervnorvauthorvshallvbevliablevforvanyvlossvofvprofitvorvanyvothervcommercialvdamages,vincludingvbutvnotvli
mitedvtovspecial,vincidental,vconsequential,vorvothervdamages.
PrintedvinvthevUnitedvStatesvofvAmerica
, Course Information
v
CoursevTitle:vForensicvAccountingvandvFraudvInvestigation
LearningvObjectives:
• Recognizevthevdefinitionvofvforensicvaccounting
• Pinpointvthevtermvthatvbecamevcommonplacevaftervfinancialvstatementvfraudvschemesvoccurredvinvth
evearlyvpartvofvthisvcentury
• Identifyvwhatvbankruptcyvfraudvis
• Determinevwhatvdamagesvarevavkeyvcomponentvof
• Recognizevthevdefinitionvofvoccupationalvfraud
• Determinevthevnumbervofvaccountingvcyclesvwhichvarevcommonvwithinvanyvbusiness
• Recognizevwhatvwhitevcollarvfraudvinvolves
• Pinpointvthevaccountingvcyclevwherevkickbacksvtovcustomersvmayvtakevplace
• AscertainvwhenvthevSarbanes-OxleyvActvwasvpassed
• Determinevwhenvavforensicvinvestigationvmayvbevundertaken
• Identifyvthevtwovprimaryvbasesvofvaccounting
• Discernv whichv financialv statementv conveysv thev financialv positionv ofv av businessv atv onev pointv invt
ime
• Identifyvthevthreevmainvtypesvofventities
• Discernvwhichvtypevofventityvisvmostveasilyvstartedvandvadministered
• Recognizevthevtermvwhichvrefersvtoventitiesv whosevlegalvauthorityvallowsvthemvtovexistvinvavhostv co
untry
• Pinpointvthevfactorvwhichvisvkeyvtovavfinancialvcrimevscheme
• Recognizevthevthreevmainvmeasuresvofvfinancialvanalysis
• Ascertainvthevstandardvmeasurevofvanventity’svfinancialvhealth
• Recognizevwhatvmakesvavgoodvfinancialvinvestigator
• Discernvhowvresponsibilitiesvarevdefinedvwithinvavcompany
• Pinpointvthevmostvcommonvtargetsvofvfraud
• Recognizevhowvbusinessesvcanvbevvictimsvofvfraud
• Pinpointvthevaccountvthatvallvaccountingvcyclesvpassvthrough
• Identifyvonevofvthevfastestvgrowingvcrimes
• RecognizevwhatvthevTammanyvSocietyvwas
• Identifyvthevcriminalvorganizationvthatvisvresponsiblevforvnearlyv$500vmillionvpervyearvinvcrime
• Recognizev thev processv byv whichv criminalv enterprisesv convertv dirtyv moneyv intov legitimate-
v appearingvincome
• Identifyvthevthreevstagesvofvmoneyvlaundering
• Recognizevthevtwovgeneralvcategoriesvforvinvestigationvofvfinancialvcrimes
• Identifyvthevbasisvforvmostvfraudvinvestigations
• Pinpointvthevcharacteristicsvthatvhelpvpredictvhowvsuccessfulvanvinvestigationvwillvbe
• Identifyvthevtwovtypesvofvsolvabilityvfactors
• Recognizevthevpartsvofvanvinvestigativevplan
• Determinevwhatvtermvisvusedvforvavconversationvwithvavpurpose
• Identifyvhowvinterviewsvarevtraditionallyvcategorized
• Recognizevonevofvthevmostvpromisingvadvancesvinvthevinterviewvarea
• Discernvthevtwovcategoriesvofvevidence
• Recognizevthevtermvwhichvmeansvthatvallvevidencevsubmittedvtovprovevavclaimvmustvbevthevoriginal
• Identifyvthevkeyvtovanyvdocumentvorganizationvsystem
andFraud
v
Investigation 3rd Edition
v
Howard Silverstone
v v Michael Sheetz
v v
Stephen Pedneault
v Frank Rudewicz
v
CPE Edition v
Distributed by The CPE Store
v v v v
www.cpestore.com
1-800-910-2755
v
,Forensic Accounting and Fr
v v v
aud Investigation
v
CPE Edition v
Stephen Pedneaultv v
Frank Rudewicz Mi
v v
chael Sheetz Howar
v v
d Silverstone
v
,Copyrightv©v2012vbyvJohnvWileyv&vSons,vInc.vAllvrightsvreserved.
Novpartvofvthisvpublicationvmayvbevreproduced,vstoredvinvavretrievalvsystem,vorvtransmittedvinvanyvformvorvbyvanyvmea
ns,velectronic,vmechanical,vphotocopying,vrecording,vscanning,vorvotherwise,vexceptvasvpermittedvundervSectionv107vo
rv108vofvthev1976vUnitedvStatesvCopyrightvAct,vwithoutvthevpriorvwrittenvpermissionvofvthevPublisher.
CPEvEditionvpublishedvbyvThevCPEvStore,vInc.,vwww.cpestore.com,v1-800-910-
2755.vReprintedvwithvpermissionvfromvJohnvWileyv&vSons,vInc.v ThevCoursevInformation,vLearningvObjectives,vRevi
ewvQuestionsvandvReviewvAnswersvarevthevsolevpropertyvofvThevCPEvStorevandvdovnotvappearvinvthevoriginalveditionv
ofvthevtextvpublishedvbyvJohnvWileyv&vSons,vInc.vAbove-
mentionedvitemsvarevCopyrightv©v2012vbyvThevCPEvStore,vInc.vAllvrightsvreserved.
LimitvofvLiability/DisclaimervofvWarranty:vWhilevthevpublishervandvauthorvhavevusedvtheirvbestveffortsvinvpreparingvt
hisvbook,vtheyvmakevnovrepresentationsvorvwarrantiesvwithvrespectvtovthevaccuracyvorvcompletenessvofvthevcontentsvofvt
hisvbookvandvspecificallyvdisclaimvanyvimpliedvwarrantiesvofvmerchantabilityvorvfitnessvforvavparticularvpurpose.vNovw
arrantyvmayvbevcreatedvorvextendedvbyvsalesvrepresentativesvorvwrittenvsalesvmaterials.vThevadvicevandvstrategiesvcont
ainedvhereinvmayvnotvbevsuitablevforvyourvsituation.vYouvshouldvconsultvwithvavprofessionalvwherevappropriate.vNeith
ervthevpublishervnorvauthorvshallvbevliablevforvanyvlossvofvprofitvorvanyvothervcommercialvdamages,vincludingvbutvnotvli
mitedvtovspecial,vincidental,vconsequential,vorvothervdamages.
PrintedvinvthevUnitedvStatesvofvAmerica
, Course Information
v
CoursevTitle:vForensicvAccountingvandvFraudvInvestigation
LearningvObjectives:
• Recognizevthevdefinitionvofvforensicvaccounting
• Pinpointvthevtermvthatvbecamevcommonplacevaftervfinancialvstatementvfraudvschemesvoccurredvinvth
evearlyvpartvofvthisvcentury
• Identifyvwhatvbankruptcyvfraudvis
• Determinevwhatvdamagesvarevavkeyvcomponentvof
• Recognizevthevdefinitionvofvoccupationalvfraud
• Determinevthevnumbervofvaccountingvcyclesvwhichvarevcommonvwithinvanyvbusiness
• Recognizevwhatvwhitevcollarvfraudvinvolves
• Pinpointvthevaccountingvcyclevwherevkickbacksvtovcustomersvmayvtakevplace
• AscertainvwhenvthevSarbanes-OxleyvActvwasvpassed
• Determinevwhenvavforensicvinvestigationvmayvbevundertaken
• Identifyvthevtwovprimaryvbasesvofvaccounting
• Discernv whichv financialv statementv conveysv thev financialv positionv ofv av businessv atv onev pointv invt
ime
• Identifyvthevthreevmainvtypesvofventities
• Discernvwhichvtypevofventityvisvmostveasilyvstartedvandvadministered
• Recognizevthevtermvwhichvrefersvtoventitiesv whosevlegalvauthorityvallowsvthemvtovexistvinvavhostv co
untry
• Pinpointvthevfactorvwhichvisvkeyvtovavfinancialvcrimevscheme
• Recognizevthevthreevmainvmeasuresvofvfinancialvanalysis
• Ascertainvthevstandardvmeasurevofvanventity’svfinancialvhealth
• Recognizevwhatvmakesvavgoodvfinancialvinvestigator
• Discernvhowvresponsibilitiesvarevdefinedvwithinvavcompany
• Pinpointvthevmostvcommonvtargetsvofvfraud
• Recognizevhowvbusinessesvcanvbevvictimsvofvfraud
• Pinpointvthevaccountvthatvallvaccountingvcyclesvpassvthrough
• Identifyvonevofvthevfastestvgrowingvcrimes
• RecognizevwhatvthevTammanyvSocietyvwas
• Identifyvthevcriminalvorganizationvthatvisvresponsiblevforvnearlyv$500vmillionvpervyearvinvcrime
• Recognizev thev processv byv whichv criminalv enterprisesv convertv dirtyv moneyv intov legitimate-
v appearingvincome
• Identifyvthevthreevstagesvofvmoneyvlaundering
• Recognizevthevtwovgeneralvcategoriesvforvinvestigationvofvfinancialvcrimes
• Identifyvthevbasisvforvmostvfraudvinvestigations
• Pinpointvthevcharacteristicsvthatvhelpvpredictvhowvsuccessfulvanvinvestigationvwillvbe
• Identifyvthevtwovtypesvofvsolvabilityvfactors
• Recognizevthevpartsvofvanvinvestigativevplan
• Determinevwhatvtermvisvusedvforvavconversationvwithvavpurpose
• Identifyvhowvinterviewsvarevtraditionallyvcategorized
• Recognizevonevofvthevmostvpromisingvadvancesvinvthevinterviewvarea
• Discernvthevtwovcategoriesvofvevidence
• Recognizevthevtermvwhichvmeansvthatvallvevidencevsubmittedvtovprovevavclaimvmustvbevthevoriginal
• Identifyvthevkeyvtovanyvdocumentvorganizationvsystem
