Detecting, Preventing
and Reporting Internal and External Fraud
Location: San Francisco, CA
Dates: MAR 12th – 13th, 2015
Speaker: Peter Goldmann, BFSI
Peter Goldmann, has 25 years of experience as a business
journalist and trainer, having launched, edited and published numerous business
trade periodicals covering small business, international trade, management
strategy, banking and personal finance. He is a Certified Fraud Examiner (CFE)
and a member of the Editorial Advisory Committee of the Association of
Certified Fraud Examiners (ACFE) as well as an active member of the Institute
of Internal Auditors, the High-Tech Crime Investigation Association and the
IOFM Controller Certification Advisory Board. He is a regular columnist for the
ACFE’s newsletter, The Fraud Examiner and is a frequent contributor to other
leading industry publications on anti-fraud topics. He has appeared on Fox
Business News, The Wall Street Journal This Morning, The New York Times and
Internal Auditor magazine. Peter Goldmann is president of White-Collar Crime 101
LLC, the publisher of White-Collar Crime Fighter, a widely read monthly
newsletter for internal auditors, controllers, corporate counsel, financial
operations managers and fraud investigators. Peter is the author of Fraud in
the Markets: Why it happens and How to fight it, published by John Wiley &
Sons, as well as four other anti-fraud books. Peter also developed FraudAware,
the leading fraud awareness training program. A user-friendly learning tool,
FraudAware uses workshop, Webinar and E-Learning formats to educate employees
and managers at all levels in how to detect, prevent and report incidents of
fraud or suspicious conduct.
Course Description:
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 crimes committed by employees and outsiders.
Reasons to attend:
This 2 day seminar will provide auditors and other financial professionals with
a strong foundation of practical knowledge about how the common frauds are
committed. The program will then move on to the specifics of...
- Who commits 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
Target Audience:
- Internal auditors
- External auditors
- Accountants
- Bookkeepers
- Loss prevention managers
- Controllers/Treasurers
- Compliance officers
- Security managers
- Fraud examiners
- Accounts payable managers
- Procurement managers
AGENDA:
Day 1:
THE FRAUD PROBLEM
Introduction
- 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)
Common Types of External and
Internal Fraud Today
External Fraud:
- Vendor fraud (Case
studies that show ways vendor fraud can be committed)
- Check fraud
(illustrations of forged/altered checks)
- ACH fraud – latest external
cyber-schemes
- Cyber-crime
(hacking/information theft, system sabotage, viruses, etc)
- Customer
fraud
- Social engineering to commit
fraud (Phishing, spear-phishing, smishing, pretexting)
Internal Fraud:
- Embezzlement (General
definition; Koss Corp. embezzlement case)
- Cash theft (Skimming,
lapping)
- T&E fraud/Misuse of
company credit cards/P-cards
- Collusion w/ domestic or
international vendors (kickbacks, bribery)
- 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)
- Intro to Internet/cyber-fraud
(Case Study: TBA)
Q&A and Interactive Discussion
RED FLAGS OF FRAUD
Conducting a Fraud Risk Assessment and Recognizing the Red Flags of Internal
Fraud
The Fraud Risk Mitigation Cycle—
Implementing a organization-wide system for detecting, preventing and
investigating fraud
- Steps to conducting a
successful fraud risk assessment (FRA)
- Embezzlement red flags
(Behavioral changes, accounting anomalies)
- Cash theft red flags
(anomalies in daily reconciliations, check-for-cash indicators, etc)
- T&E fraud red flags
(Unusually high expense claims; photocopies of receipts, 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 anomolies)
- Financial reporting
fraud (Unusually high revenues, odd patterns in receivables, etc)
- Counterfeiting and
piracy (Graphic samples of red flags)
- Internet/cyber-fraud
Q&A and Interactive
Discussion
|
Day 2
FRAUD DETECTION AND INVESTIGATION
Fraud Detection
Red Flags are the Key to Fraud Detection and Prevention. Once you know what
red flags to look for you can implement effective detection, investigative
and forensic accounting techniques.
Introduction: How Frauds Are Most Often Detected (General ways: ACFE
Chart)
Additional General Detection Methods:
1. 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
2. Surprise Internal Audit 3. Regular internal audits, incorporating fraud audit testing 4. Ratio analysis 5. Physical inspection of inventory 6. Manual review of all vendors (to ensure absence of sham vendors) 7. Manual review/assessment of payroll sample data (to ensure absence
of ghosts)
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.
Examples of Detective Measures at Work
- Accounts Payable Fraud
Auditing (List of AP fraud-audit/detection measures)
- Payroll Fraud Auditing (List
of payroll fraud-audit/detection measures)
Basic Fraud Investigation
Techniques 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 1. Securing crime
scene
2. Interviewing/interrogating suspects 3. Documenting findings
Q&A and Interactive Discussion
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.
Q&A and Interactive Discussion
CONCLUSION
|
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Enroll for This Program today please click hear
Thank
you & Regards,
Kevin
Roberts,
Training
Manager,
kevin.roberts@complianzworld.com
Call
us at this Toll Free number: +1-866-978-0800
http://www.complianzworld.com