Overview:
Organizations of all kinds and sizes are increasingly threatened by fraud. Embezzlement, kickbacks, check fraud, financial statement fraud and vendor billing schemes are just a few of the countless economic crimes committed by employees and outsiders.
This seminar will provide auditors, controllers, compliance managers, accountants and other financial professionals with a strong foundation of practical knowledge about how common frauds are committed using a combination of lecture, exercises and group breakout sessions
Why should you attend:
- Common and Uncommon Internal and External Fraud Schemes Threatening Organizations Today
- Who Commits Internal and External (and collusive) Fraud
- Why Employees Commit Fraud
- How to Detect The Red Flags of Common Schemes
- Essential fraud detection tools and techniques
- Software Tools For Auditing For Fraud
- Best Practices For Developing And Implementing Anti-Fraud Controls
Who will benefit:
- Accountants
- Auditors (internal AND external)
- Commpliance Managers
- Financial Professionals
- Controllers
- Treasurers
- Accounts Payable Managers
- General Counsel/Corporate Attorneys
Agenda:
Day One
| INTRODUCTION: The Fraud Problem |
- Statistical overview of the fraud problem
- External versus Internal Fraud-short overview of differences
- Who commits fraud -- (ACFE data on women versus men, age groups, etc)
- Why employees commit fraud (The Fraud Triangle)
- Lessons from fraudsters: (Examples of real-life frauds that can and do affect organizations across industries)
|
PART 1: Common Types of External and Internal Fraud Today
Lesson 1: External Fraud |
- Vendor fraud (Case studies that show ways vendor/billing/sham corporation fraud can be committed)
- ACH fraud - latest external cyber-schemes
- Cyber-crime (hacking/information theft, system sabotage, viruses, etc)
- Social engineering to commit fraud (Phishing, spear-phishing, smishing, pretexting)
- Bid-pooling
|
| Lesson 2: Internal Fraud |
- Embezzlement (General definition; Koss Corp. embezzlement case)
- T&E; fraud/Misuse of company credit cards/P-cards
- Collusion w/ domestic or international vendors (kickbacks, bribery)
- Collusion: Bid-rigging
- Theft/falsification of confidential information (Example: Heartland breach or other case)
- Identity fraud (Graphic description of ways internal ID theft/fraud is committed; pretexting, using co-worker's credentials to commit fraud; theft of customer ID)
- Theft of assets (laptops, physical equipment, software piracy)
- Payroll Fraud (Manipulating payroll systems; ghost employees
- Procure-to-Pay fraud (Procurement - Receiving-Accounts Payable Cycle)
- Financial reporting fraud (Case study: TBA, depending on latest developments)
- Internal risk of cyber/information theft and crime
|
| PART 2: Common Types of External and Internal Fraud TodayExternal Fraud: |
- Vendor fraud (Case studies that show new ways vendor fraud can be committed)
- Check fraud (illustrations of forged/altered checks)
- The growing threat of cyber-crime in Africa (hacking/information theft, system sabotage, viruses, etc)
- Social engineering (Phishing, pretexting, smishing, spear phishing)
|
Q&A; and Interactive Discussion
Note: Each category of fraud will be illustrated by real-life recent fraud scenarios/case studies affecting NFP's |
| Internal Fraud: |
- Embezzlement (General definition; 2-3 case studies involving NFP's)
- Cash theft (Skimming, lapping)
- T&E; fraud/Misuse of company credit card or P-card
- Collusion w/ domestic or international vendors (kickbacks, bribery)
- Identity fraud (Graphic description of ways internal ID theft/fraud is committed pretexting, using co-worker's credentials to commit fraud, theft of customer ID)
- Theft/falsification of confidential information (donor personal information, WVI employee data, etc)
- Theft of assets (laptops, physical equipment, software piracy)
- Payroll Fraud (Manipulating payroll systems; ghost employees)
- Procure-to-Pay fraud (Procurement - Receiving-Accounts Payable Cycle)
- Financial reporting fraud (Case study TBD)
- Counterfeiting and piracy (Case TBD)
- Internet/cyber-fraud (Case TBD)
|
| Q&A; and Interactive Discussion |
Day Two
| PART 3: Conducting a Fraud Risk Assessment and Recognizing the Red Flags of Internal Fraud |
| Fraud Risk Mitigation Cycle - Implementing a Company-Wide System for Detecting, Preventing and Investigating Fraud |
| Lesson 2: Fraud Detection |
- SAS 99 and Current IIA Practice Guides re: Fraud responsibility
- AICPA and GAO "Yellow Book" audit standards/requirements for detecting fraud
- How frauds are most often detected (General ways: ACFE Chart)
- Additional general detection methods
- Whistleblower hotlines: How to set them up and manage them (detailed discussion of do's and don'ts). Detailed instruction on best practices and mistakes to avoid
- Monitor Employee Email, other activities
- Surprise Internal Audit
- Regular internal audits, incorporating fraud audit testing
- Ratio analysis
- Manual review of all vendors (to ensure absence of sham vendors)
- Data Mining/Analytics (is both detective and investigative. I/A can use D-M to screen for red flags) Basic steps and techniques and how to gather required data.
- Specific operational fraud detection A: Procure-to-Pay Auditing (List of Procurement and AP fraud-audit/detection measures)
- Specific operational fraud detection B: Payroll Fraud Auditing (List of payroll fraud-audit/detection measures)
- Digging deeper where red flags are detected: Data mining & analytics
- Reporting findings to management
|
| Lesson 3: Basic Fraud Investigation Techniques |
- Investigative "Toolbox" (each case requires investigative adjustment)
- Forensic Accounting Investigation-What it Is (Different from Internal Audit/ When to Call in Forensic Accountant/Auditor)
- Forensic accounting/auditing techniques: Data Mining and Analytics (as with detection, it is the most powerful forensic accounting investigative tool); ratio analysis
- Gathering evidence - Document retention, chain of custody, preservation, mistakes to avoid
- Securing crime scene
- Interviewing/interrogating suspects
- Documenting findings
|
| PART 4: FRAUD DETECTION AND INVESTIGATION |
| Lesson 1: The Fraud Risk Mitigation Cycle-Implementing a organization-wide system for detecting, preventing and investigating fraud |
- Conducting a Fraud Risk Assessment and Recognizing the Red Flags of Internal Fraud
- Steps to conducting a successful fraud risk assessment (FRA)
|
| Lesson 2: Red Flags of Fraud |
- Embezzlement red flags (Behavioral changes, accounting anomalies)
- Cash theft red flags (anomalies in daily reconciliations, check-for-cash indicators, etc)
- Internal billing fraud red flags (frequent switches in vendors; vendor address is a P.O. box)
- Collusion/kickback/bribery red flags (long-time vendor suddenly replaced, pricing anomalies, etc)
- Identity fraud red flags (internal) (Employees complain of ID theft problems, customer complaints)
- Theft of confidential information and intellectual property (Examples: Theft of customer credit card data and other PII; Scientific fraud/fraudulent scientific research)
- Theft of assets/industrial equipment (laptops, software piracy, confidential/proprietary information)
- Payroll fraud (terminated employees still receiving checks; payroll amounts fluctuate)
- P2P fraud red flags (Suddenly higher costs of supplies or services; low quality of delivered merchandise; inventory anomalies)
- Financial reporting fraud (Unusually high revenues, odd patterns in receivables, etc)
- Internet/cyber-fraud
|
| PART 5: IMPLEMENTING AND MONITORING ANTI-FRAUD CONTROLS |
- Internal Controls and Other Fraud Prevention Measures:
- Who Should Manage Anti Fraud Activities
- Internal Controls: Do's and Don't's
- Best Practices in Anti-Fraud Controls
- General controls: Segregation of Duties, Delegation of Authority, Background investigation
- Specific operations-level controls for each fraud category
- Controls Self Assessment (CSA)
- Continuous controls monitoring/Continuous Auditing (CCM/CA)
|
Pricing/Register:
San Diego, CA | February 5th & 6t, 2015$795.00 (Seminar for One Delegate)
Register now and save $200. (Early Bird)
Until December 31, Early Bird Price: $795.00 From January 01 to February 03, Regular Price: $995.00
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