Financial Fraud Prevention and Detection: Governance and Effecti

ABOUT THIS BOOK
Step-by-step guidance for board members and executives on preventing and detecting accounting fraud
In the wake of highly publicized allegations of accounting irregularities and fraudulent financial reporting that are shaking up today's corporate community, Financial Fraud Prevention and Detection provides a step-by-step guide to how these crises can envelop a company and how to prevent them from happening in the first place. It is written for almost everyone involved: outside directors, audit committee members, senior executives, CFOs, CPAs, in-house lawyers, and outside law firms.

-Provides a blueprint for Fraud Prevention and Detection for corporate executives
-Presents step-by-step guidance to corporate boards and C-suite executives on managing the threat of accounting fraud
-Prepares directors and executives for the possibility of accounting irregularities
-Answers the question of how accounting fraud starts—and grows

With solid strategies for prevention of accounting fraud as well as a process to follow when fraud has been discovered, Financial Fraud Prevention and Detection vividly explores the corporate environment that causes fraud, how it spreads, the kind of crises it can create for a company, and the best ways to deal with it.


TABLE OF CONTENTS
Preface ix

Acknowledgments xi

Table of Exhibits xiii

PART I: ORIGIN

Chapter 1: The Origin of Financial Fraud 3

Chapter 2: The Path to Corruption 19

PART II: PREVENTION

Chapter 3: From Treadway to Sarbanes-Oxley 41

Chapter 4: The Sarbanes-Oxley Act 59

Chapter 5: The Audit Committee 81

Chapter 6: In the Crosshairs: The Chief Executive Of‰ cer 121

PART III: DETECTION

Chapter 7: Detection and Its Aftermath 133

Chapter 8: Investigating Financial Fraud: Objectives

and Approach 149

Chapter 9: Finding the False Numbers 161

Chapter 10: Getting a New Audit Report on the

Financial Statements 175

Chapter 11: The Securities and Exchange Commission 203

Chapter 12: Criminal Investigations 223

Chapter 13: Class Action Lawsuits 245

PART IV: THE FUTURE

Chapter 14: The Future of Financial Reporting 265

About the Author 279

Index 281


ABOUT THE AUTHOR
MICHAEL R. YOUNG is an internationally recognized expert on the causes and prevention of fraudulent financial reporting. He is the author of the Financial Reporting Handbook and Accounting Irregularities and Financial Fraud and has been recognized by Accounting Today as one of the top 100 most influential people in accounting. Young speaks throughout the country on financial reporting issues and has appeared on Fox Business, CNBC, CNN, and BNN (Canada). He lives in New York City and is a partner of Willkie Farr & Gallagher LLP where he chairs the firm's securities litigation and enforcement practice.