1st Edition
Fraud Investigation Reports in Practice Convenience and Corporate Crime
Investigation reports are written by fraud examiners after completion of internal reviews in client organizations when there was suspicion of financial wrongdoing. Fraud examiners are expected to answer questions regarding what happened, when it happened, how it happened, and why. This book presents a number of case studies of investigation reports by fraud examiners, offering a framework for studying the report as well as insights into convenience of fraud.
The case studies, including KPMG and PwC, focus on two important subjects. First, convenience themes are identified for each case. Themes derive from the theory of convenience, where fraud is a result of financial motives, organizational opportunities, and personal willingness for deviant behaviors. Second, review maturity is identified for each case. Review maturity derives from a stages-of-growth model, where the investigation is assigned a level of maturity based on explicit criteria. The book provides useful insights towards approaching fraud examinations to enable better understanding of the rational explanations for corporate fraud. The book is framed from the perspective of private policing, which contextualizes how investigation reports are examined.
This book is a valuable resource for scholars and upper-level students researching and studying auditing and investigation work in the corporate and public sectors. Business and management as well as criminal justice scholars and students will learn from the case studies how to frame a white-collar crime incident by application of convenience theory and how to evaluate a completed internal investigation by fraud examiners.
Introduction
1. Convenient Organizational Opportunity
High Social Status in Privileged Positions
Legitimate Access to Crime Resources
Disorganized Institutional Deterioration
Lack of Oversight and Guardianship
Criminal Market Structures
Interactions between Crime Enablers
2. Born Free by Ernst & Young
Reactions from the Accused
Offender Convenience Themes
Fraud Investigation Outcome
Investigation Report Maturity
Examination Consequences
Examiners Review Examiners
Norwegian Foundation Authority
Lacking Directorate Response
3. Danske Bank by Plesner
The Previous Bank Scandal
Offender Convenience Themes
Fraud Investigation Outcome
Investigation Report Maturity
4. Equinor Energy by PwC
United States Onshore Oil
Offender Convenience Themes
Fraud Investigation Outcome
Investigation Report Maturity
5. Hurtigruten Cruises by Wiersholm
National Symbol Hurtigruten
Offender Convenience Themes
Fraud Investigation Outcome
Investigation Report Maturity
6. Norfund Foreign Aid by PwC
Business Email Compromise
Executive Email Impersonation
Offender Convenience Themes
Fraud Investigation Outcome
Investigation Report Maturity
7. Obos Housing Facilities by KPMG
Cooperative Member Revolt
Motive Convenience Themes
Opportunity Convenience Themes
Willingness Convenience Themes
Investigation Report Outcome
Investigation Maturity Assessment
8. Samherji Fishing by Wikborg Rein
Al Jazeera News Investigation
Kveikur News Investigation
Samherji Fishing Press Release
DNB Bank Corrupt Transactions
Whistleblower Johannes Stefansson
Wikborg Rein Fraud Investigation
White-Collar Crime Convenience
Al Jazeera Investigation Evaluation
9. Wirecard Banking by KPMG
Motive Convenience Themes 205
Opportunity Convenience Themes
Willingness Convenience Themes
Investigation Report Outcome
Investigation Maturity Assessment
10. Stanland Autobiography
White-Collar Support Member
Offender Convenience Themes
How He Reinvented Himself
White-Collar Support Group
Conclusion
Bibliography
Index
Biography
Petter Gottschalk is Professor in the Department of Leadership and Organizational Behavior at BI Norwegian Business School. After two decades in executive positions in business, he joined academics to publish extensively on knowledge management, fraud investigation, white-collar crime, and convenience theory.
