Professional Documents
Culture Documents
2011 CCH. All Rights Reserved. 4025 W. Peterson Ave. Chicago, IL 60646-6085 1 800 248 3248 www.CCHGroup.com
Who had the opportunity to commit fraudulent activity? How and when was the fraud committed? What was taken (how much money was lost)? Where were the assets moved (how were the assets converted to the benefit of the perpetrator)? Why was the activity intentional, rather than accidental, or the result of mistake or misunderstanding?
Forensic and Investigative Accounting 2
Chapter 18
Accounting Anomalies
Accounting anomalies often signal the presence of fraud. Examples of accounting anomalies include: Irregularities in source documents (e.g., missing documents, excessive voids or credits, common names or addresses of customers, increases in past due receivables, increased reconciling of items, etc.). Faulty journal entries. Inaccuracies in ledgers.
Chapter 18
Chapter 18
Chapter 18
Chapter 18
14
Who could have committed a fraud? How could the fraud have been committed? Evidence of intent (which can be shown by repeated instances of taking). Economic impact (difference in reported and actual revenue, plus (if negative) underpaid sales tax (to the state) and arena rent (to the stadium owner) must be included as total loss due to theft. Evidence of conversion tracing funds to dummy (usually bank) account of employee suspect under a different, or possibly assumed, name.
Forensic and Investigative Accounting 15
Chapter 18
Chapter 18
16