NCJ Number
84308
Date Published
1981
Length
12 pages
Annotation
Methods for investigating corporate crime, and the knowledge and experience required of the investigator are delineated.
Abstract
An investigation of corporate crime should include (1) a review of business record information; (2) research of the industry to increase familiarity with its prescribed and common practices; (3) review of specific organizational charts to identify actual or potential problem areas; (4) interview of chief executive and complaining witnesses; (5) examination of reported or suspected crime problems; (6) a feasibility study of the crime problem; and (7) examination of principals to assess their psychological, economic, and political advantages and disadvantages. Documents should also be collected from regulatory agencies, and management procedures should be reviewed. Security policies and procedures for tracing funds should be reviewed through records of deposits, personal checks, corporation records, or stock transactions. Finally, specific crimes should be identified. The investigator should be familiar with the specifics of an operation, such as accounting procedures, banking practices, computer programming, contract terminology, and research and development in the field. Investigative accountants are specially trained to determine the purchasing and inventory control practices as well as the financial status of the corporation. Management policies can do much to counter internal fraud by developing appropriate auditing procedures, developing employee feedback, cooperating with union officials, evaluating structural design, reviewing receiving and shipping procedures, and evaluating personnel histories.