One weak link can break even the strongest chains – Achilees Heels

One weak link can break even the strongest chains – Achilees Heels The concept of this particular case study relates to what we called achilees heels. This relates to the very small control deficiency in any system which sometimes is dismissed as a very immaterial deficiency and not much care…

Counterfeit Notes

There was another very interesting case of a very good Samaritan , a person who was very good, friendly and a person always willing to be helpful but sometimes these are the too good to be true symptoms. There was one bank where a person who a very pleasant personality,…

Achilles’ Heel Fraud

A small loose control in even the most sophisticated system can allow fraud Just as the legendary Achilles was killed because of a very small weakness of a vulnerable heel, an organisation can be seriously damaged by even a small control deficiency in an otherwise robust and well designed system. The…

The bifocal vision 

Sometimes seemingly small details or trivia can reveal astonishing facts useful in any problem-solving process In the problem solving process, sometimes even a superhuman effort may not yield a meaningful result, while a very small clue can provide the solution and the key to the problem. Therefore a bifocal or…

The disaster frauds

The ‘disaster’ frauds 

Employees can exploit disaster or crisis situations. Human nature is frail and easily susceptible to temptation. Therefore, corporate management must be vigilant especially in situations of disaster and crisis, because these offer ideal hunting grounds for perpetrators of fraud. It is very simple to take advantage of collapse in controls…

When nothing else works !

Fraud detection can be made easier by using some common sense methods Certain theories make use of a principle called “reduction ad absurdum”. According to this principle, conclusions can sometimes be derived indirectly, by proving that all other conclusions are absurd and not possible. In such theories, the derived solution…

Birbal Trap

The wisdom and strategy applied by the legendary Birbal can be effective in fraud detection even today The legendary Birbal could guess what a thief had in mind and plan a situation so as to trap him. One of the most useful Birbal anecdotes is the one in which he had to…

Fraud through manipulation 

If top executives lack accounting expertise, deception is even easier   Lack of accounting knowledge and too much dependence are thriving grounds for fraud. Generally, most CEOs or top level executives rely upon the financial information presented to them by their treasurers. Apart from verification by auditors, which is usually much later,…

The diagnostic power of trends

Patterns of both financial and non-financial data can reveal a wealth of information, and even unearth phantoms. Every accountant or auditor applies trend analysis to reassure himself as to the reliability and dependability of the financial data he is concerned with. Trends are patterns in data viewed over a span…

Combating manipulations

The ‘Relative Size Factor’ can unearth various frauds Accounting manipulations stemming from intelligent planning can be easily camouflaged in vast data populations, and, even if noticed, can be explained as errors. Such manipulations are more often than not revealed by accident. However, there are certain tools which facilitate detection of…