skip navigation

PUBLICATIONS

Register for Latest Research

Stay Informed
Register with NCJRS to receive NCJRS's biweekly e-newsletter JUSTINFO and additional periodic emails from NCJRS and the NCJRS federal sponsors that highlight the latest research published or sponsored by the Office of Justice Programs.

NCJRS Abstract

The document referenced below is part of the NCJRS Virtual Library collection. To conduct further searches of the collection, visit the Virtual Library. See the Obtain Documents page for direction on how to access resources online, via mail, through interlibrary loans, or in a local library.

 

NCJ Number: 68762 Find in a Library
Title: CASH-FLOW ANALYSIS - A TECHNIQUE FOR DETECTING CASH GENERATION
Journal: GAO REVIEW  Volume:15  Issue:2  Dated:(SPRING 1980)  Pages:44-49
Author(s): F M DOYAL
Date Published: 1980
Page Count: 6
Sponsoring Agency: National Institute of Justice/
Rockville, MD 20849
Sale Source: National Institute of Justice/
NCJRS paper reproduction
Box 6000, Dept F
Rockville, MD 20849
United States of America
Document: PDF
Language: English
Country: United States of America
Annotation: THIS ARTICLE DISCUSSES EFFECTIVENESS OF CASH-FLOW ANALYSIS IN DISCOVERING CASH GENERATION SCHEMES, OFTEN A FIRST STEP IN WHITE-COLLAR CRIME. A DETAILED EXAMPLE IS GIVEN.
Abstract: CASH-FLOW ANALYSIS EXAMINES FINANCIAL TRANSACTIONS WHICH INVOLVE DEBITS OR CREDITS TO CASH ACCOUNTS. THIS ANALYSIS CAN DETECT BRIBERY, EXTORTION, OR KICKBACK SCHEMES. MOST COMPANIES DO NOT KEEP LARGE CASH RESERVES ON HAND AND SCHEMES DISGUISED AS LEGITMATE TRANSACTIONS MUST BE DEVISED TO GET THE MONEY FOR ANY CRIMES. TO DETECT SOME CORRUPT ACT, ALL BANK STATEMENT, DEPOSIT SLIPS, AND CANCELLED CHECKS FOR A PREDETERMINED PERIOD ARE EXAMINED WITH AN EYE TOWARD UNUSUAL TRANSACTIONS (SUCH AS CHECKS MADE OUT TO CASH OR NONPAYROLL CHECKS ENDORSED BY HAND). ONCE THESE TRANSACTIONS ARE FLAGGED, THE AUDITOR MUST TRACE THE ENTRIES THROUGH THE MANY RECORDS USUALLY KEPT BY LARGE ORGANIZATIONS. KEEPERS OF THESE RECORDS OR JOURNALS SHOULD BE INTERVIEWED. AFTER THIS TRACKING, ANY TRANSACTIONS NOT SUPPORTED BY COMPANY BOOKS WILL BE APPARENT. SOME INDICATIONS OF FRAUDULENT ACTS ARE A SECOND OR SUPPLEMENTARY SET OF BOOKS, CONCEALED ASSETS, MISSING RECORDS, FALSE INVOICES OR BILLS, ETC. THE FINAL PHASE OF THE ANALYSIS IS IN-DEPTH INTERVIEWS WITH PARTIES INVOLVED IN THE UNUSUAL TRANSACTIONS. THE INTERVIEWER MUST PREPARE IN ADVANCE FOR THIS CONFRONTATION INTERVIEW. A DETAILED CASE STUDY IS PRESENTED WHICH FOLLOWS THE CASH-FLOW ANALYSIS PROCESS FROM BEGINNING TO END. (KHM)
Index Term(s): Accountability; Accounting methods; Audits; Check fraud; Crimes against businesses; Records management; White collar crime
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=68762

*A link to the full-text document is provided whenever possible. For documents not available online, a link to the publisher's website is provided. Tell us how you use the NCJRS Library and Abstracts Database - send us your feedback.