Suchergebnisse

• eBook-Kapitel aus dem Buch Accounting Fraud

  The Warning Signs of Fraud

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …detected more quickly had the warning signs not been ignored. These warning signs are often being referred to as fraud risk factors, fraud risk indicators… …professional scepticism. The aim of this schedule is to act as an aid to all anti-fraud-practitioners when considering fraud risk mitigation initiatives… …. Rather, a positive answer indicates that a heightened risk of fraud may exist and further evaluation may be prudent. The schedule was compiled from… …. Knowing the most impor- tant red flags should help auditors to do a better job of assessing fraud risk. However, there are also limitations of the use… …. – Red flags may indicate other risks, not exclusively fraud. For example, weak controls increase the risk of error as well as the risk of fraud… …between red flags and fraud risk. Fraud risk indicators cannot be summed up to derive the overall result. In certain circum- stances, a few risk factors…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 24: AIG (2005)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …underestimates its risk exposure and fails to collect enough premiums). As a huge multinational company, with a history of being extremely well run, AIG had one… …Re” transactions Questions about legitimate reinsurance (which is “insurance for insurance” and is intended to spread out risk) lay at the heart of… …a foreign subsidiary of Gen Re (a Connecticut-based holding company for global risk management operations). The transactions were structured to make… …it appear that Gen Re was paying AIG to share some of its claim risk. But investigators found no evidence of risk transfer from Gen Re to AIG. In…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 26: Juergen Schneider (Germany, 1994)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …behaviour as a serious and important businessman. It also appeared that they were seduced into taking the risk by the promise of big profits. The scam ran… …rent if business was going slow. Apparently, neither the auditors employed by the banks to gauge their credit risk nor the banks themselves ever asked…
• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 42: Nikko Cordial (Japan, 2007)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …accounting practices or risk exposure and embarrassment. Among other things, Nikko Cordial failed to include in consolidated accounting the results of NPI…
• eBook-Kapitel aus dem Buch Accounting Fraud

  Chapter 4: Conclusion and Outlook

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …responsibility of companies to enhance their anti-fraud efforts. Thus, managing fraud risk has become a business imperative today. However, there are clear… …guidelines for “best practice” in fraud risk management. For a summary of basic anti-fraud strategies, see Exhibit 9 (the definitions are extracted from… …environment where the risk of fraud is minimal and opportunity is eliminated Fraud Remediation: Recovery of losses through insurance or the legal… …, all of these strategies are interrelated. Nevertheless, prevention clearly is the first line of defence in minimizing fraud risk. Strong preventive… …and hiring and promotion standards. – A comprehensive fraud risk assessment helps senior management to under- stand their fraud risks, identify gaps… …in their preventive controls, and develop a plan for eliminating these control weaknesses. The fraud risk assessment process should be performed on a… …misconduct. The regular delivery of fraud awareness trainings is vital for maintaining a quality compliance organiz- ation. – Based on the fraud risk… …cannot assure that fraud will not be committed. Nevertheless, companies can certainly take steps to mitigate the risk of fraud. There is a wide variety… …Fraud Examiners: Managing the Business Risk of Fraud: A Practical Guide, www.acfe.com/documents, November 2007 Ball, Ray: Market… …Exit Plan?), www.theconglomerate.org, January 2010 KPMG: Fraud Risk Management: Developing a Strategy for Prevention, Detection, and Response…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 31: Bankgesellschaft Berlin (Germany, 2001)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …mix of businesses made it difficult for the supervisory board of the parent institution to maintain control and insist on clear risk reporting from… …the assignment of shares in various real estate funds (the so-called “VIP funds”), with which the entire risk was removed for each investor. The… …admitted it could not complete its 2000 accounts because of the ongoing investiga- tion and deep uncertainties about the potential risk in the… …second transaction in December 2001, the severely cash-strapped state provided another EUR 21.6 billion in risk guarantees (the so- called “risk shield”)… …, management was not able to uncover the full extent of the bank’s risk exposure or to push through the necessary changes. In November 2001, the BGB board… …BGB’s risk management was insufficient and that its risk provisions had to be revised upwards. But he had sounded the alarm in vain. BGB asked him to… …learned from the BGB debacle was that politicians and bank risk management don’t mix well. The new BGB chairman, Hans-Joerg Vetter, put forward a plan…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Accounting Fraud

  Fraud Theories

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …effective risk management policies) is decisive for any fraud prevention program. Moreover, opportunity often represents the only element an organization… …stressful. There is the constant need to conceal the fraud, and there is always the risk of detection. In that context, a final common… …personality type among fraudsters is the “risk lover” (or “risk seeker”), who likes to engage in risky behaviour and has a much stronger risk appetite than a…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Accounting Fraud

  A Practice Aid for Auditors: Fraud Interviews – An Inquiry Guide

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …– As you are probably aware, CPAs today are required to assess the risk of fraud in the audit of every company, not just yours. Therefore, we need to… …and controls? What have you found as a result of the programs and controls? – What is your assessment of the risk that the financial statements may… …report to? – Has management reported to the audit committee on the process for identify- ing and responding to the risk of fraud? Has management reported… …risk of fraud may be likely to exist? – How does the audit committee exercise oversight of the management’s process for identifying and responding… …procedures has internal audit performed to detect fraud? What specific procedures has internal audit performed to address the risk of management override of…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 7: Waste Management (1997)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Andersen’s WinSMART system, a computerized risk management classification program using data input by the engagement team, classified WMI as a “high risk… …list of clients that posed a significant risk to the audit firm. After the 1995 audit, Andersen prepared a memorandum articulating its disagree- ment…
• eBook-Kapitel aus dem Buch Accounting Fraud

  Introduction

  Professor Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …risk of fraud in the current environment. 16% stated explicitly that their company management was not committed to fighting fraud. The findings… …, fraud and its associated reputation risk will continue to be a focus for businesses around the world. However, given the ongoing growth of globalization… …shows that creative accounting is one of the key fraud risk challenges in developing countries as well. The scandals have heightened the necessity to… …Fraud Prevention and Internal Control, Hoboken/New Jersey 2006, pp. XV–XVIII Ernst & Young: 9th Global Fraud Survey 2006: Fraud Risk in Emerging…

  Alle Treffer im Inhalt anzeigen