Even small businesses that have been victims of employee fraud are failing to put proper systems in place to prevent future occurrences, according to a Sage Software survey conducted by M/A/R/C Research. The findings suggest proper use of accounting software may be a valuable weapon in a company’s fraud-prevention arsenal.
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Forensic services
Smart Stops On the Web
FRAUD / FORENSIC ACCOUNTING HAVE FRAUD FEARS?http://fvs.aicpa.org/Resources/Antifraud+Forensic+AccountingSearch no further than the AICPA’s offering of antifraud and forensic accounting resources. Click “Tools and Aids” to download Managing the Business Risk of Fraud: A Practical Guide, which outlines principles for establishing effective fraud risk management. The paper was released jointly by the
Financial Reporting
The guidance applies to the calculation of earnings per share under FASB Statement no. 128, Earnings per Share, for share-based payment awards with rights to dividends or dividend equivalents. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities, according
Fraud
The FBI said its 1,204 pending mortgage fraud cases resulted in 321 indictments, 206 convictions, $595.9 million in restitution orders, and $21.8 million in recoveries in 2007. The Bureau’s Financial Crimes Report to the Public, Fiscal Year 2007 said 80% of all reported mortgage fraud losses involved collusion or collaboration
Fraud
The Financial Crimes Enforcement Network (FinCEN) released guidance intended to help financial institutions file more precise suspicious activity reports (SARs) as the agency sets it sights on foreign corruption and related money laundering. Fin-CEN says a more effective use of SARs will help law enforcement better detect and analyze trends
Fraud
The growing prevalence of mortgage loan fraud is being met by greater success on the part of the financial community at intercepting the fraud before loans are funded. A Financial Crimes Enforcement Network (FinCEN) report said the number of suspicious activity reports (SARs) relating to mortgage fraud increased 42%
Glass-Eating Fraud Scheme Shattered
THE WORLD’S DUMBEST FRAUDSTERS Ronald Evano may not have liked the taste, but his and his wife Mary’s glass-eating insurance fraud scheme netted them over $200,000. Evano pleaded guilty in federal court to 20 counts of conspiracy, mail and wire fraud, identity theft, making false statements and Social
Fraud
n Suspicious Activity Reports (SARs) related to mortgage loan fraud jumped 35% in the first six months of 2007 compared with the first six months of 2006, according to a report by the Financial Crimes Enforcement Network. Mortgage loan fraud is now the third most common type of suspicious activity
Fraud
The FBI says the subprime mortgage crisis is feeding a booming business for fraudsters. The Bureau’s Subprime Mortgage Industry Fraud Initiative is investigating 14 corporations involved in subprime lending—including mortgage lenders and investment banks that bundle loans into securities sold to investors. At the end of January, the FBI said
Audit Purchases to Check Revenue
I just took your test, “What Is Your Fraud IQ?,” (Dec. 07, page 56). I received a score of 90%. However, I do want to take issue with the wording in one of the questions. In 10(a), you described “Cost of Goods Sold” as an account. Technically, that’s not
Electronic Hooky
Supervisors beware—an Oklahoma company has taken fake excuses to a new level. The Excused Absence Network produces software templates to create legitimate-looking excuse notes that appear to come from local doctors and hospitals, available for purchase for about $25. Other forms offered include a phony jury summons and funeral notices.
Nonprofits Adopt Governing Policies
Since the implementation of Sarbanes-Oxley, board governance policies at not-for-profit organizations have dramatically changed, especially when it comes to whistleblower and conflict-of-interest policies. Of the 89% of organizations that have a conflict-of-interest policy in place, more than nine out of 10 require board members to sign the policy and more
Deepening Insolvency: An Emerging Threat?
EXECUTIVE SUMMARY Deepening insolvency is a relatively new and developing legal theory. Courts have disagreed about whether deepening insolvency is a stand-alone tort claim or simply a basis for seeking damages related to fraud, professional malpractice or another claim. If an auditor is alleged to have “missed” an
Vendor Management Tips
Selecting the right vendors and properly managing vendor relationships can help protect your company from damages and long-term losses. As more work is outsourced to specialized vendors, companies face greater exposure to fraud, security breaches and the possibility of financial losses. When companies outsource, they are still responsible
Auditing
For news from the AICPA and state societies, visit www.cpa2biz.com, which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. The findings were based on inspections conducted between 2004 and 2006. The PCAOB released a report on the deficiencies to help
Privilege Claims Under Fire
Despite some legal setbacks, the IRS has signaled it will continue to press for a strict reading of the work product privilege that protects taxpayer documents from discovery. With Action on Decision 2007-004, the IRS said it will not acquiesce in the Sixth Circuit’s holding in U.S. v. Roxworthy that
Your Check Is in the Mail
Sabrina Walker of Minneapolis must have been one happy camper—at least for a while. It seems that in March the state of Minnesota inadvertently cut a $2.5 million check to her instead of the Hennepin County Medical Center, the intended recipient. Walker’s only other dealing with the state’s accounting system
Financial Services Bear Brunt of Losses
“The risk of fraud is part of doing business. It can even be considered a consequence.” According to a joint survey of 892 senior executives by Kroll, a risk consulting company, and the Economist Intelligence Unit, the statement above by Andres Antonius, president of Kroll’s consulting group, rings especially true
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