Book Review: Fraud Casebook: Lessons from the Bad Side of Business
“Fraud Casebook: Lessons from the Bad Side of Business” compiles real cases of occupational frauds — offenses that occur in the workplace—which are prevalent in organizations around the world. Each case is authored by real fraud investigators who are the members of ACFE (Association of Certified Fraud Examiners). Through the handpicking and editing of Joseph T. Well, the compiled cases are relevant and easy to read.
The book contains 62 stories of real cases and are categorized into three parts; Asset Misappropriation, Corruption Schemes, and Financial Statement Fraud Schemes.
One of the stories presented in this book is titled Country Club Fraud-What a Steal!And is authored by John Boekweg. This chapter describes how the laid back culture of a country club, which lacks formal internal controls, such as a lack of duty segregation, messy book records, and no access limit to cash boxes has led to a total theft loss of US$ 55,000.
Every case is analyzed in four areas, which are: why the fraud was committed, how the fraud was launched, the lessons learned and the recommended preventive action. The lessons learned provides sound advice on what went wrong. While the recommended preventive actions provide what best practices of internal controls should be implemented to prevent the same from occurring elsewhere.
As occupational fraud is a serious issue that puts an organization’s financial state and reputation at risks, it is important that organizations should be aware of these issues. The four areas discussed throughout this book is worth a read for fraud examiners, investigators, and entrepreneurs.