Fraud Risk in Governmental and Not-for-Profit Organizations

This book uses a combination of explanations and examples to help you understand the frauds most common in governments and nonprofits, as well as what prevention and detection procedures are most effective in responding to these fraud risks. It also discusses how auditors might address their responsibilities with respect to fraud in a financial statement audit of governmental and not-for-profit organizations.

Chapter 1 Introduction
Overview
Introduction
General Warning Signs of Fraud
Ways to Prevent, Detect, or Deter Fraud
Summary
Practice Questions

Chapter 2 The Governmental and Not-for-Profit Environments
Unique Characteristics of the Governmental Environment
Governmental Organizations
Unique Characteristics of the Not-for-Profit Environment
Governmental Financial Reporting Objectives and Users
Not-for-Profit Financial Reporting Objectives and Users
Summary
Practice Questions

Chapter 3 The Auditor’s Consideration of Fraud in a Financial Statement Audit
Auditor Responsibilities and Marketplace Expectations
Fraud Risk Factors in Governmental and Not-for-Profit Entities
Fraud and the Auditor: An Overview
The Auditor’s Responsibilities Related to Fraud
Application of AU-C Section 240 to Audits of Governmental and Not-for-Profit Entities
Summary
Practice Questions

Chapter 4 Where Fraud Occurs in Governmental and Not-for-Profit Organizations
Where Fraud Occurs
Where Fraud Occurs in Governmental Organizations
Where Fraud Occurs in Not-for-Profit Entities
Fraud Risks in Governmental and Not-for-Profit Entities
Management Override
Planning Considerations in Audits of Governmental and Not-for-Profit Entities
Summary
Practice Questions

Chapter 5 Fraud Schemes Found in Governmental and Not-for-Profit Organizations
Fraudulent Financial Reporting Schemes
Fraudulent Financial Reporting Revenue Recognition
Fraudulent Financial Reporting Functional and Fund Classifications
Misappropriation of Assets Overview
Misappropriation of Assets Common Fraud Schemes
Misappropriation of Assets Common Fraud Schemes Procurement and Contracting
Misappropriation of Assets Common Fraud Schemes Cash Receipts and Fraudulent
Disbursements
Misappropriation of Assets Common Fraud Schemes Personnel Costs
Misappropriation of Assets Common Fraud Schemes Property, Plant, and Equipment
Misappropriation of Assets Common Fraud Schemes Diversion of Program Benefits and Assets
Summary
Practice Questions

Glossary
Index
Solutions
Chapter 1 Solutions
Chapter 2 Solutions
Chapter 3 Solutions
Chapter 4 Solutions
Chapter 5 Solutions