Accounting research techniques of fraud and money laundering

Abstract

The fraud and money laundering are defined and characterized as illegal activities—increasingly common—to which accounting professionals and auditors are confronting. Consequently, distinct accounting research techniques are provided throughout the text (Analyze, Compare and Examine), as well as a list of indicators that make up warning signs for professionals in different scopes, such as: Accounting Records, Supporting Documentation, Internal Control System, Sales Cycles and Receivables, Purchasing Cycle and Accounts Payable, Inventories, Personnel administration and Treasury. The text also makes an emphasis in the importance of Income Statement, as a countable element collecting the items that are usually affected when a fraud or money laundering are carry out. Finally, a practical case is developed applying the techniques and indicators above, in order to make clear the way a business can be used to hide money laundering crime.