I am honored to announce that my book Detecting Fraud in Organizations: Techniques, Tools and Resources was reviewed in the June 2013 issue of The CPA Journal. You can see the review here.
Author: Joe Petrucelli
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Professor Petrucelli oversees: “An Honor’s Thesis Paper”
The photo to the right shows Daniel O’Shaughnessy and Professor Petrucelli at the Undergraduate Research Conference.
Professor Joseph Petrucelli recently oversaw the preparation and finalization of an Honors thesis paper for one of his fraud students, Daniel O’Shaughnessy.
The thesis paper Does the Committee of Sponsoring Organizations (COSO) Framework Prevent Fraud? maintains the idea that the COSO framework is not keeping up with the modern fraudster. The paper goes on to compare the major financial frauds that have occurred in history, including Tulip Mania (considered to be the first recorded speculative or economic bubble, 1637) and the Bernie Madoff Ponzi Scheme (considered to be the largest financial fraud in US history, 2008), to allow one to better understand the fraudster’s thinking and to better safeguard the business processes. Daniel O’Shaughnessy correctly identifies changes that need to made in organizations to allow for employees to “accept the COSO framework of internal controls as their own mission and help promote the proper awareness throughout the organization.”
Daniel’s thoughts on writing an Honors thesis paper:
As an aspiring CPA, this journey has given me both knowledge and exposure to the many areas of the accounting profession. Exploring the effectiveness of the COSO framework has given me an in depth perspective of the issues today’s organizations face within the ever-changing work environment. This journey has required my complete dedication and a determination to produce the best final work product. Under the guidance of Joseph Petrucelli, one of New Jersey’s most respected accounting professionals and author of Detecting Fraud in Organizations: Tools, Techniques and Resources, I have excelled to new levels of personal development and have benefited tremendously every step of the way. Buckle up as you prepare to embark on the journey of the COSO framework and begin to step inside the mind of the modern day fraudster.
Daniel’s thesis paper can be read here.
If you would like send comments directly to Daniel, you can send your comments to danosean1@yahoo.com.
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One-Minute Fraud Mysteries
In Detecting Fraud in Organizations (Wiley Corporate F&A) Joseph Petrucelli presents his One-Minute Fraud Mysteries. These mysteries describe hypothetical situations that you can analyze for fraud. Here we present Xtranormal video versions of the One-Minute Fraud Mysteries. Watch the intro video and then check out the mysteries. Analyze the situation presented and determine if and where there is a risk for fraud present.
Click the links below to download and watch the videos!
Intro Video
Trust Us, Inc.
Check back soon. More to come!
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Why the 800 lb Friendly Gorilla
So why did I choose the 800 Pound Friendly Gorilla as my book’s fraud fighting mascot? I have come across a lot of interesting information since I began doing research for my book. I spent a lot of time looking up various animals and found the gorilla to be the best fit. Gorillas are a perfect choice because they project an imposing presence yet possess a friendly and caring side. Let’s take a look at some more facts about the gorilla.
Gorillas have been around since the 5th century B.C. I thought it would be interesting to let you know that the largest gorilla ever recorded weighed 638 pounds. Needless to say, gorillas can be intimidating. But, whether 638 pounds or 800 pounds the gorilla is not a symbol of force. My 800 pound friendly gorilla is imposing but does not use force in place of calm, rational, and proactive communication.
Gorillas live in groups of three to thirty. A group consists of different gorillas of varying age and gender. Most organizational processes operate in teams and are made up of different generations of people. Organizational cultures are unique and diverse. Gorillas act as a community and their leader, the adult male (silverback) gorilla, sets the tone. Gorillas act like people and are often perceived as a force to be reckoned with yet they protect their young and have many human qualities. Some researchers believe gorillas have spiritual feelings or religious sentiments. Interestingly enough gorillas learn how to behave from their mothers and other gorillas. It is so important that the proper ethical tone be displayed by the silverback that leads the others in the group. This is no different than with a board of directors, a CEO or other leaders in an organization who need to set an ethical tone for their organization
So what does a gorilla’s routine consist of? They wake up between 6am-8am. Then they eat between 8am-10am. Then from 10am-2pm they eat, play, relax, and sleep. Then from 2pm-5pm they travel 300-6,000 feet searching and exploring for food and exercise. Then from 5pm-6pm they build a nest so they can sleep. Gorillas need schedules and structure just like people. Do the people in your organization have structure and direction?
Gorillas walk on all fours with the soles of their feet flat on the ground and the knuckles of their hands curled and planted on the ground. This to me makes then seem well grounded. Organizations need to maintain well-grounded and ethical people. Sometimes you have to crawl before you can walk to develop the correct ethical tone necessary to detect, deter and prevent fraud.
The reason I love 800 Pound Gorillas is that they create the necessary prospection to avoid the necessity to actually use force. When the male silverback adult gorilla stands up and starts beating its chest it is trying to intimidate its enemy so they do not have to fight. People need to understand the consequences of their actions. The best way to do this is by creating the proper oversight that let’s employees know how to behave ethically. The Gorilla is smart to avoid conflict and scare off the enemy using communication rather than force. No one wins when the only option is force. Another interesting thing is when gorillas are in distress they have behaviors that include diarrhea and strong body odor. Sound human yet?
My research revealed that gorillas have favorite foods. Some of their favorite foods are bamboo, thistles and wild celery, along with over 200 different types of leaves, tubers, flowers, fruit, fungi, and certain types of insects. Gorillas do not to have to drink water since all the moisture they need comes from all the foliage they consume through food. I thought this was interesting since we are so dependent on water. The gorilla has the ability to adapt around a resource. Organizations are continually being asked to do more with less, and like gorillas need to be good at adapting.
As stated in my book, the 800 Pound Friendly Gorilla loves to communicate and develop an ethical organization by knowing the people in the process with access to the value. The 800 Pound Friendly Gorilla makes sure that responsibilities are only assigned to people in the organization that are trustworthy.