An intelligence insider gives inside information about the content of the Halligen programme ('The McCanns and the Conman')

j.rob wrote:McCanns and the Con Man



McCons and the Can Men?!

• Carol Zhang
  
  
• ¨ Fraud is a crime that is seldom observed.¨ John J . Hall (1996)¨ “Fraud symptoms—the specific, observable signs that fraud might be present—may he of the actual fraud or of the cover-up attempt.”(p.85)
  
  
• 1. Accounting anomalies 2. Internal control weaknesses 3. Analytical anomalies 4. Unusual behavior 5. Extravagant lifestyle 6. Tips and complaints
  
  
• Common anomaly frauds involve:¨ Irregularities in source documents¨ Faulty journal entries¨ Inaccuracies in ledgers
  
  
• ¨ Irregularities in source documents¨ Normal¨ Fraud
  
  
• ¨ Faulty journal entries
  
  
• ¨ Inaccuracies in ledgers
  
  
• Internal control fraud symptoms include :¨ Lack of segregation of duties¨ Lack of physical safeguards¨ Lack of independent checks¨ Lack of proper authorization¨ Lack of proper documents and records¨ Overriding of existing controls (most common)¨ Inadequate accounting system
  
  
• ¨ CFO and treasure stolen more than $6 millions in less than 5 years.¨ False tractions frequently but in small amount
  
  
• Relatives of CFO-A Relatives of CFO-A Relatives of treasure-A Relatives of Treasure-B CFO Company A treasure Company B Company DCompany C Billing Payment Authorization Symptoms ?
  
  
• ¨ Three simple procedures to prevent small business fraud 1. Owners should open and reconcile bank statements 2. Pay everything by check so there is a record 3. Owners should sign every check themselves
  
  
• Ernst and Young has not been negligent in performing the audit
  
  
• ? Year end 2004/G corporation Book: more than $40M Bank: around $400 Bank officer Lent to other Stock Market FM conspire PWC Send confirmation
  
  
• ¨ Sarbanes-Oxley Act of 2002¨ imposes potentially serious penalties on firm executives with fines of up to $5 million and/or imprisonment up to 20 years¨ At the same time, this legislation requires that these firms tighten their internal controls over financial reporting.
  
  
• ¨ Strange financial statement relationships¨ Cash shortages or overages¨ Excessive late charges¨ Unreasonable expenses or reimbursements¨ Excessive turnover of executives¨ Physical abnormalities
  
  
• ¨ How to calculate the stone pour into river?¨ Sufficient paper documents
  
  
• RM not enough Shipping in bad weather Ships were not enough Fraud
  
  
• ¨ Case in 2013¨ Expense padding by Kevin Richard Halligen¨ Former CEO of a security consulting and crisis management firm-RDI¨ 2.1 millions with 1.7 millions buying a house for herself
  
  
• Elements of fraud Theft act Concealment Conversion Company employees are in the best position to detect fraud
  
  
• ¨ Symptoms rather than evidence¨ People hesitant to come forward:¡ Not Sure about the fact¡ Fear reprisal for being a whistle-blower¡ Intimidated by the perpetrator¡ May regard squealing is wrong¡ Not easy within organization
  
  
• ¨ Law protect Whistle-Blowers and Promote Fraud Detections¨ Whistleblower Representation of SEC
  
  
• ¨ Barra, R. A. (2010). The impact of internal controls and penalties on fraud. Journal of information Systems, 24(1), 1-21.¨ Ge. C.(2005). Audit as a leader. China: Jixie Industry.¨ Former CEO of London based company pleads guilty to federal charge in 2.1 million fraud scheme, (2013). Press releases of FBI Retrieved from [You must be registered and logged in to see this link.]¨ Whistleblower Representation of SEC Retrieved from [You must be registered and logged in to see this link.] DE733F¨ Hall, J. J. (1996). How To Spot Fraud: Many managers consider some level of" shrinkage" as normal. Journal of Accountancy, 182, 85-85.¨ Hongtao.Hou (2007). The analysis of legal responsibility of CPA: G-Waigaoqiao Corporation VS PWC .Journal of Accounting and Finance ,2010(4),49-59