Fraud Preventing, Investigation, and Revelation

Course Outline

DAY 1

Developing a Fraud Prevention Process

• Fraud Mitigation

  • How to evaluate fraud risk mitigation?

  • Why controls may not protect you?

  • Putting Yourself in the Mind of the Fraudster
  • Examination of Typical Controls in Place to Mitigate the Risks
  • Risk Exposures
  • Identifying the Vulnerable Areas

• Procurement Fraud

  • Tendering and Bidding

  • Common Indicators

  • Supplier and Outsourcing Fraud
  • Procurement and Inventory Fraud Risks
  • A Procurement Fraud Checklist will be Provided

• Fraud Indicators

  • The Top 30 Fraud Indicators

  • How to spot the danger signals?

  • Fraud Indicators – Fraud Advisory Panel Paper
  • Developing a Toolkit for Identifying Possible Fraud
  • An Auditor’s Fraud Toolkit will be Provided

• Implementing a Best Practice Fraud Prevention Process

  • CIMA Fraud Risk Management Guidance

  • Introducing Effective Anti-fraud Policies

  • Creating a Fraud Consciousness Loop
  • Development of a Fraud Awareness Training Program
  • Communicating Standards of Expected Behavior /Ethics
  • The Need for Strong and Consistent Action When Fraud is Suspected
  • Electronic Data and Asset Protection
  • Fraud Response Plans Paper
  • Anti-Money Laundering – issues and requirements
  • Money Laundering Paper in the Pack
  • The Relationship between Fraud, Risk, and Control
  • The Roles, Responsibilities, and Liabilities of Auditors, Management, Specialists, and Others

DAY 2

Fraud Risks

• Background

  • Fraud Explained: Definitions
  • Fraud Statistics
  • Why is fraud such a serious issue?
  • ACFE Fraud Survey Results
  • The Cost of Fraud
  • Who commits fraud?
  • Profile of a Fraudster
  • Trends and Statistics regarding Detected Fraud
  • Why fraud is probably being perpetrated now in your organization?

• Evaluating the Fraud Risks

  • E & Y 13th Global Fraud Risk Survey Results

  • Fraud Risk Management Process

  • Managing the Business Risk of Fraud (IIA, CPA, CFE Paper )
  • 6 Principles (from the paper )
  • The fraud Risk Management Program should be in Place
  • Fraud Risk Exposure should be Assessed
  • Prevention Techniques to Avoid Potential Fraud Risk Events
  • Detection Techniques should be Established
  • A Reporting Process should be in Place
  • A Coordinated Approach to Investigation and Corrective Action
  • Building a Picture of the Major Fraud Risks
  • Supplier and Outsourcing Fraud
  • Fraud Risk Matrix
  • Fraud Scenarios
  • Fraud Risk Register Example
  • Fraud Risk Questionnaire
  • Generic Risk Factors
  • Specific Risk
  • Design of Controls to Prevent Fraud
  • Physical and Logical Access
  • Job Descriptions
  • Accounting Reconciliations
  • Supervision  

• The IT Fraud Risks

  • Computer Fraud Paper

  • Computer Fraud Prevention

  • E-Commerce – The key fraud risks and steps to take to mitigate them
  • Internet and Intranet – The fraud risks
  • Preventing Internet Fraud Paper
  • IT Security – How to evaluate effectiveness and influence change?
  • Adoption and Enforcement of Information Security Standards
  • Segregation of Duties - The Dangers and the Practical Solutions
  • How to detect IT fraud?

• Identity Fraud

  • Identity Fraud – The Fastest Growing Fraud Risk

  • Identity Fraud – Fraud Advisory Panel Paper

  • Identity Fraud Examples
  • How to protect your business?

• The Risk of Corruption

  • Crime Causes

  • Corruption Indicators

  • Fraud Red Flags
  • The Issues to Look For
  • Bid Rigging – The issues to look for

DAY 3

The Link between Fraud Prevention and Detection

• Aiming for a Cost-effective Balance between Prevention and Detection

  • Use of Management Check-lists

  • The Need to be Able to Think like a Fraudster – To be able to prevent it

  • Company Policy on Consequences of Committing Fraud
  • Facilitation of Whistle Blowing
  • Whistle Blowing Policy
  • Pros and Cons of External Hot-lines
  • Use of Specialists to Aid Detection and Investigation
  • Preparing and Implementing Fraud Contingency Plans
  • How to ensure fraud investigation is always given top priority?
  • Use of Successful Fraud Investigation as a Moral Deterrent
  • Managing the External Coverage of Proven Fraud

• The Assurance Role regarding Fraud

  • ECIIA Paper

  • Prevention and Investigation

  • Should Detection be an IA role?
  • The IIA States currently Detection is not an IA role
  • What should IA do to aid detection?

• Use of Computer Assisted Audit Techniques (CAATs)

  • ACL as a Fraud Investigation Tool

  • ACL Fraud ebook

  • Examples of How to use CAATs in Fraud Investigation will be Shared
  • Benford’s Law
  • Benford’s and CAAT’s Paper

DAY 4

Fraud Investigation

• Managing the Investigation

  • The Need for thorough Planning

  • Determining the Objectives of the Investigation

  • Who should be involved? – What skills do you need?
  • How do keep the investigation low-profile?
  • Conducting Fraud Investigations Guidance
  • Research – What information can lawfully be obtained?
  • What information is available and can be used?
  • Forensic Evidence and How to obtain it
  • Collating Information and Maintaining the Chain of Evidence
  • Knowing When to Suspend or Dismiss Employees
  • Fraud Investigation Report Template will be Provided

• Interviewing Suspects and Witnesses

  • Setting the Scene – choice of venue, etc.

  • Do you know your legal authority for conducting interviews?

  • Can you use deception in interviews?
  • How do you avoid breaching the employees’ rights under the law?
  • 47 Tips for Fraud Interviews
  • Planning the Interview – do’s and don’ts
  • Fraud Interview – The 10 Steps
  • How do keep in control?
  • How to tell if someone is lying?

• Communicating the Results

  • When and how to inform top management?

  • When to inform regulators / the police / etc.?

  • Managing External Coverage
  • Dealing with the Media / Stakeholders
  • The Use of Successful Fraud Investigation as a Moral Deterrent
  • Rebuilding Damaged Relationship

DAY 5

Fraud Detection and Legal Issues

• Data Mining as a Fraud Detection Tool

  • Fraud Detection Basics Paper

  • Fraud Profiling – How to target the right systems?

  •  Fraud Prevention and Detection in the Automated World
  • Data Mining Paper
  • Risk Scoring
  • Fraud Risk Prioritization
  • How to get the information you need?
  • The Use of Internal Databases
  • Demonstration of External Databases
  • Data Validation
  • Automated Fraud Detection
  • How to put the techniques into use in your organization?
  • Audit Software – The tools available
  • Practical Uses of Data Mining and the Results Achievable

• The Legal Aspects                                                      

  • The Need to Stay within the Law

  • Legal Implications

  • When to bring the lawyers in?
  • How to protect your work from disclosure? – legal privilege
  • How to ensure that evidence is admissible?
  • Search and Seizure Orders
  • Civil vs. Criminal Action
  • Bribery Act and the Implications for GCC Businesses
  • Gifts and Hospitality Guidance
  • How to recover stolen assets? – Making sure the criminal does not profit
  • How to handle disciplinary proceedings?
  • Employer's and Employee's Rights

• What to do when you suspect fraud?                                                                                                                       

  • How to react when fraud is suspected?

  • How to decide who needs to be told?