Mark J. Nigrini - Forensic Analytics, 2nd Edition

The Wiley Corporate F&A series provides information, tools, and insights to corporate professionals responsible for issues affecting the profitability of their company, from accounting and finance to internal controls and performance management.

Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Asia, and Australia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers professional and personal knowledge and understanding.

Forensic Analytics

Methods and Techniques for Forensic Accounting Investigations

SECOND EDITION

MARK J. NIGRINI, B.COM. (HONS), MBA, PHD

Copyright 2020 John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 7622974, outside the United States at (317) 5723993 or fax (317) 5724002.

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-in-Publication Data

Names: Nigrini, Mark J. (Mark John)

Title: Forensic analytics : methods and techniques for forensic accounting investigations / Mark J. Nigrini, B.Com. (Hons), MBA, Ph.D.

Description: Second Edition. | Hoboken : Wiley, 2020. | Series: Wiley corporate f&a | Revised edition of the author's Forensic analytics, c2011. | Includes bibliographical references and index.

Identifiers: LCCN 2019056749 (print) | LCCN 2019056750 (ebook) | ISBN 9781119585763 (hardback) | ISBN 9781119585879 (adobe pdf) | ISBN 9781119585909 (epub)

Subjects: LCSH: Forensic accounting. | Fraud. | Misleading financial statements.

Classification: LCC HV6768 .N54 2020 (print) | LCC HV6768 (ebook) | DDC 363.25/963dc22

LC record available at https://lccn.loc.gov/2019056749

LC ebook record available at https://lccn.loc.gov/2019056750

Cover Design: Wiley

Cover Image: HAKINMHAN/Getty Images

To my friends and colleagues in the Department of Accounting, West Virginia University, Morgantown, West Virginia.

Thanks especially to my late-night and weekend-working friends in the west wing of the building, Nick Apostolou, Ednilson Bernardes, and Virginia Kleist, for their support and encouragement over the past seven years.