Internal Control/Anti-Fraud Program Design for the Small Business E-Book

Steve Dawson

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Wiley Corporate F&A
• Sprache: Englisch

Seitenzahl: 218

Veröffentlichungsjahr: 2015

Beschreibung

A how-to guide to small business anti-fraud protection and internal control Internal Control/Anti-Fraud Program Design for the Small Business is a practical guide to protection for businesses NOT subject to the Sarbanes-Oxley Act. Written by an expert with three decades of forensic investigation experience, this book is geared specifically toward private, non-public small businesses and their unique needs in the realm of fraud protection. Covering all elements of an internal control structure applicable to the small business community, this guide provides a step-by-step roadmap for designing and implementing an effective, efficient internal control structure/anti-fraud program tailored to your business's particular needs. Case studies are used throughout to illustrate internal control weaknesses and the fraud that can result, and follow-up analysis describes the controls that would have reduced the probability of fraud had they been in place. You'll learn how to analyze your company's internal control issues, and implement a robust system for fraud prevention. Guidance toward Sarbanes-Oxley compliance is readily available, but there is little information available for the many businesses not subject to the act --until now. This book is the step-by-step guide for instituting an internal control program tailored to your small business. * Understand the five elements of internal control * Avoid gaps in protection with relevant controls * Design the ultimate anti-fraud program * Implement internal control tailored to your needs The majority of small business owners simply do not know the elements of or implementation process involved in internal control, and Sarbanes-Oxley guidelines don't necessarily scale down. Internal Control/Anti-Fraud Program Design for the Small Business helps you design and install the internal control/anti-fraud protection your business needs.

Leseprobe

The Wiley Corporate F&A series provides information, tools, and insights to corporate professionals responsible for issues affecting the profitability of their company, from accounting and finance to internal controls and performance management.

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Internal Control/Anti-Fraud Program Design for the Small Business

A Guide for Companies NOT Subject to the Sarbanes-Oxley Act

STEVE DAWSON

Cover image: © Sergey Nivens/Shutterstock Cover design: Wiley

Copyright © 2015 by Steve Dawson. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Dawson, Steve, 1962–    Internal control/anti-fraud program for the small private business : a guide for companies not subject to the Sarbanes-Oxley Act / Steve Dawson.       pages cm. — (Wiley corporate F&A series)    Includes index.    ISBN 978-1-119-06507-4 (hardback); ISBN 978-1-119-08372-6 (ePDF); ISBN 978-1-119-08371-9 (ePub); ISBN 978-1-119-08373-3 (obook)    1. Fraud—United States—Prevention. 2. Small business—United States—Auditing. I. Title.    HV6691.D39 2015    658.4′73—dc23

2014049431

To my wonderful wife, Ebeth, the matriarch of our incredible family and the strongest person I have ever known. Without your constant support, this work would have never become a reality.

Contents

Preface: Maybe It’s Time We Get Back to the Basics

ANTI-FRAUD PROGRAM DESIGN FOR THE SMALL BUSINESS

SMALL BUSINESS DEFINED

THE ANTI-FRAUD PROGRAM STRUCTURE

NOTES

Acknowledgments

PART ONE THE ANTI-FRAUD ENVIRONMENT: THE BLUEPRINTS, THE FOUNDATION, THE GROUND FLOOR

Chapter 1 The Architect’s Blueprint

THE ELEMENTS OF ANTI-FRAUD PROGRAM DESIGN

ANTI-FRAUD ENVIRONMENT

FRAUD RISK ASSESSMENT

CONTROL ACTIVITIES

INFORMATION: PROGRAM DOCUMENTATION

COMMUNICATION: THE COMPANY FRAUD TRAINING PROGRAM

MONITORING AND ROUTINE MAINTENANCE

Chapter 2 Foundational Policies

FOUNDATIONAL POLICIES

THE FRAUD POLICY: THE ESSENTIAL ELEMENTS OF AN EFFECTIVE FRAUD POLICY

CASE PRESENTATION

Chapter 3 Foundational Policies

THE ESSENTIAL ELEMENTS OF AN EFFECTIVE FRAUD REPORTING POLICY

Chapter 4 Foundational Policies

CASE: “NO QUESTIONS ASKED”

CASE: “IT WILL NEVER BE MISSED”

CASE: LARRY THE CHIEF FINANCIAL OFFICER

THE ELEMENTS OF AN EFFECTIVE EXPENSE REIMBURSEMENT POLICY

APPENDIX 4A: EXPENSE REPORT FORM

APPENDIX 4B: SUPPLEMENTAL BUSINESS MEAL AND ENTERTAINMENT CHARGES FORM

Chapter 5 The Ground Floor

GROUND RULES FOR FRAUD RISK ASSESSMENT

AN EXAMPLE OF RISK ASSESSMENT

PROCEDURAL STEPS FOR PERFORMING A FRAUD RISK ASSESSMENT

CASH IN BANK

CASE: THE TRAIL IS GONE

CASE: FRIENDS IN LOW PLACES

ASSET MISAPPROPRIATION

CORRUPTION

FINANCIAL STATEMENT FRAUD

PART TWO ANTI-FRAUD CONTROL ACTIVITIES: RAISING THE WALLS

Chapter 6 Control Activities

CRITICAL PRINCIPLES OF CONTROL ACTIVITY DESIGN

FOUNDATIONAL CONTROL ACTIVITIES

CASE: THE MAIL DROP IN LAS VEGAS

APPENDIX 6A: CONFLICT OF INTEREST FORM

APPENDIX 6B: NEW VENDOR ESTABLISHMENT FORM

Chapter 7 Control Activities

BUT I ONLY HAVE TWO EMPLOYEES