Data Sleuth: Using Data in Forensic Accounting Engagements and Fraud Investigations

286 Pages·2022·5.328 MB·English

by  Leah Wietholter

Data Sleuth
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Data Sleuth
Using Data in Forensic Accounting
Engagements and Fraud Investigations
LEAH WIETHOLTER
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Library of Congress Cataloging- in- Publication Data:
Names: Wietholter, Leah, author.
Title: Data sleuth : using data in forensic accounting engagements and
fraud investigations / Leah Wietholter.
Description: Hoboken, New Jersey : Wiley, [2022] | Series: Wiley corporate
f&a | Includes index.
Identifiers: LCCN 2021062798 (print) | LCCN 2021062799 (ebook) | ISBN
9781119834380 (cloth) | ISBN 9781119834403 (adobe pdf) | ISBN
9781119834397 (epub)
Subjects: LCSH: Forensic accounting. | Fraud investigation.
Classification: LCC HV8079.F7 W54 2022 (print) | LCC HV8079.F7 (ebook) |
DDC 364.16/3—dc23/eng/20220112
LC record available at https://lccn.loc.gov/2021062798
LC ebook record available at https://lccn.loc.gov/2021062799
Cover Design: Wiley
Cover Image: © DNY59/Getty Images
For Chris, Sherlock, Irene, and Watson

Contents
Foreword xi
Preface xv
Acknowledgments xix
Chapter 1: Building a Data Sleuth Team 1
The First Team 2
The Forensic Accountant 4
Technical and Strategic 4
Thorough and Efficient 5
Detail- Oriented and Effective Communication 6
Accounting Knowledge and Legal Knowledge 7
Meeting Deadlines and Developing Business 8
Forensic Accountant Problems 8
The Scalability Problem 9
The Strategy Problem 10
The Review Problem 12
The Sustainability Problem 13
Data Sleuth Solutions 14
The Scalability Solution 14
The Strategy Solution 16
The Review Solution 18
The Sustainability Solution 18
Chapter 2: The Data Sleuth Process 21
Engagement Types 21
Simultaneously Managing Client Expectations and Objectivity 25
Professional Standards 28
The Data Sleuth Process 30
vii
viii ◾ Contents
Chapter 3: The Data Sleuth Necessity 41
Forensic Accounting Engagements versus External Financial
Statement Audits 42
The Evolution of Forensic Accounting 44
The Case of the Cash Back Payroll Scheme 45
Start with the Evidence, Not the Scheme 47
The Case of the Gambling Executive Director 48
Chapter 4: Data Sleuth Considerations 53
Investigations Affect Real People 54
The Case of the Nonexistent Inventory 55
The Fraud Formula 58
Staying on Task with Purpose in Mind 59
The Investigation Decision Tree for a Data Sleuth 60
Recovery Avenues 63
The Case of the Man Cave 66
Chapter 5: Client Communication and Involvement 71
The Case of the Initial Client Meeting 72
Client Expectations 75
Data Procurement 77
Client Involvement During an Investigation 78
Ongoing Client Communication 81
Chapter 6: The Data Sleuth Case Plan 83
The Data Sleuth Process 83
The Client’s Investigation Priorities 86
Evaluate the Subject’s Access through Risk- Based Analysis 86
Data Sleuth Analysis Framework 88
From Conceptual Venn Diagram to Comparative Data Analysis 96
The Data Analysis Plan 97
Data and Information Gathering 99
Communication of the Case Plan 101
The Case of the Duplicate Payroll – Conclusion 102
Chapter 7: Risk- Based Analysis 105
The Case of the Puzzling Entries 106
Risk Focus in Audits versus Risk Focus in Investigations 118