Details

Preventing Fraud in Nonprofit Organizations

1. Aufl.

von: Edward J. McMillan
61,99 €
Verlag:	Wiley
Format:	PDF
Veröffentl.:	18.07.2006
ISBN/EAN:	9780471931768
Sprache:	englisch
Anzahl Seiten:	256

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Beschreibungen

Titelbeschreibung

IS YOUR NONPROFIT VULNERABLE TO FRAUD? Fraud or embezzlement discovered within a major corporation ultimately leads to front-page scandals and a few raised eyebrows. But the mere suggestion or evidence of fraud within a nonprofit can cause irreversible damage to its reputation, its support base, and, eventually, its very existence. Preventing Fraud in Nonprofit Organizations is the proactive manual your organization needs to detect fraud and prevent it from affecting your organization's bottom line and name. Brimming with details of hundreds of actual fraud and embezzlement schemes, it provides specific, practical advice on strengthening the areas in which your nonprofit may be most vulnerable. This hands-on guide shows nonprofit accountants, CFOs, financial consultants, board members, and managers how to: * Know the four consistent areas of high risk * Thoroughly evaluate their organization's system of internal controls * Assemble a fraud examination team * Document a fraud action plan * Expose weaknesses that could lead to fraud * Take corrective action to reduce the possibility of victimization Fraud deterrence is not exclusive to large corporations. Recommended reading for nonprofit professionals, Preventing Fraud in Nonprofit Organizations will motivate executives to take a fresh and intensive look at their organization's practices and act to protect from financial dishonesty.

Inhaltsverzeichnis

About the Author ix Acknowledgments xi Preface xiii Disclaimer xv About the Companion Website xvii Section 1 Not-For-Profit Organizations: Four Consistent Areas of High Risk Embezzlement: Who Does It and When 1 Not-For-Profit Specific Issues 1 Summary 4 The Perpetrators: Who They Are, Why They Do It, and How They Are Caught 4 The Embezzler’s “Window of Opportunity” 9 Section 2 Statement of Auditing Standard No. 99 “Consideration of Fraud in a Financial Statement Audit” 13 Statement of Auditing Standard No. 99 “Consideration of Fraud in a Financial Statement Audit” 13 Section 3 Essential Internal Control and Administrative Procedures to Avoid Embezzlement 23 The Background Check 23 Conditions of Employment Agreement 28 Conflicts of Interest 34 Nepotism 37 Whistleblowers 39 Noncompete Agreements 41 Confidentiality of Information 43 Bonding Issues 45 Signers on Bank Accounts 46 Two-Signature Checks 46 Lockbox 48 Positive Pay 49 Deposit Security and Restrictive Endorsements 50 Check Stock 52 Cash Transactions 53 Cash Register Issues 54 Insurance Committees 54 Computer File Backups 55 Check and Wire Transfer Signatures 56 Inventory Issues 58 Company Credit Cards 58 Lines of Credit 59 Bad Debt Policy 61 Internal Audits 63 Stop Payment Orders 64 Voiding Checks 66 Numbered Check Request Forms 68 Expense Accounts 70 CPA Management Letters 71 Random Disbursement Checks 73 CHECK 21 74 Section 4 Clever Examples of Embezzlement 77 Payroll Tax Deposits 77 Check Switching 82 Ghosts on the Payroll and Ghost Vendors 88 The Danger of Acronyms 94 Bank Account Reconciliations 95 Wire Transfers 96 Postage Issues 98 Kiting 100 Manual Checks (Handwritten and Typed) 101 Auditing Receipts 104 Section 5 Steps to Take If You Have Been Victimized by Fraud 105 Documenting a Fraud Action Plan 105 Fraud Examinations and Assembling the Fraud Team 109 The Basics of Forensic Accounting 113 Section 6 Internal Control Analysis, Documentation, and Recommendations for Improvement 121 Internal Control Analysis, Documentation, and Recommendations for Improvement 121 Fraud Glossary 197 Index 217

Autorenportrait

Edward J. McMillan, CPA, CAE, is an experienced fraud examiner and teaches fraud prevention courses to organizations such as the American Institute of CPAs, the Maryland Association of CPAs, other state societies of CPAs, the U.S. Chamber of Commerce, and the American Bar Association, among others. Ed also speaks regularly on the subject of fraud prevention at business conventions of all types and can be reached at (410)893-2308 or contacted via email at emcmillan@sprintmail.com.

Back cover copy

IS YOUR NONPROFIT VULNERABLE TO FRAUD? Fraud or embezzlement discovered within a major corporation ultimately leads to front-page scandals and a few raised eyebrows. But the mere suggestion or evidence of fraud within a nonprofit can cause irreversible damage to its reputation, its support base, and, eventually, its very existence. Preventing Fraud in Nonprofit Organizations is the proactive manual your organization needs to detect fraud and prevent it from affecting your organization's bottom line and name. Brimming with details of hundreds of actual fraud and embezzlement schemes, it provides specific, practical advice on strengthening the areas in which your nonprofit may be most vulnerable. This hands-on guide shows nonprofit accountants, CFOs, financial consultants, board members, and managers how to: <ul> <li>Know the four consistent areas of high risk</li> <li>Thoroughly evaluate their organization's system of internal controls</li> <li>Assemble a fraud examination team</li> <li>Document a fraud action plan</li> <li>Expose weaknesses that could lead to fraud</li> <li>Take corrective action to reduce the possibility of victimization</li> </ul> Fraud deterrence is not exclusive to large corporations. Recommended reading for nonprofit professionals, Preventing Fraud in Nonprofit Organizations will motivate executives to take a fresh and intensive look at their organization's practices and act to protect from financial dishonesty.