Agenda

1. Understanding How Fraud Occurs

• Integrating The Fraud Theory Into Your Audit
• Incorporating The Fraud Audit Matrix
• Comparing Approaches: Internal Audit, Fraud Audit, And Forensic Investigation
• The Fraud Triangle: Opportunity, Pressures, And Rationalization
• Identifying Who Commits Fraud
• Fraud In Plain English
• Identifying What Actually Constitutes Fraud In Your Organization
• How Perpetrators Conceal Fraud
• The Premise Of Concealment And Concealment Strategies
• Conversion: How Perpetrators Benefit From The Fraud Scheme
• Identifying Types Of Conversion And Understanding Different Audit And
• Industry Strategies

2. Building Fraud Scenarios

• Understanding The Fraud Risk Structure
• The Inherent Fraud Schemes In Every Business System
• How To Build Fraud Scenarios For Individual Audit Programs

3. Preparing a Business Process Fraud Risk Assessment for Audit Programs

• Using The Drill-Down Approach To Identify Scheme Variations For Each Business System
• How To Link Fraud Risks For Each Business Process To Your Control Structure
• Establishing A Score For Mitigation Of Fraud Risk By Internal Controls
• How To Link The Control Fraud Scores To The Audit Response

4. Incorporating Fraud Risk Assessment into the Audit Program

• Fraud Scheme Approach
• The Fraud Opportunity Approach
• Techniques To Assess The Risk Of Fraud
• Linking Internal Controls To Fraud Risk
• Linking The Audit Response To Fraud Risks
• Individual And Aggregate Fraud Risks
• Business Risk Factors

5. Integrating Fraud Testing into Your Audit Program

• Using Red Flags To Identify Fraud
• How To Build And Analyze Red Flags For Specific Fraud Schemes
• Fraud Data Analysis: Approaches And Strategies
• How To Build The Fraud Data Profile: The Step Approach For Data Mining
• Identifying The Response To Fraud Based On The Fraud Risk Assessment: Control Vs. Fraud Approach
• Incorporating Fraud Steps Into The Audit Program
• How To Design Fraud Audit Procedures To Pierce The Concealment Strategy
• Linking The Audit Program To The Risk Assessment
• Sampling Designed To Locate Fraud
• Testing And Evaluating The Design Of Your Anti-Fraud Controls
• Identifying Suspicious Transactions Through Fraud Audit Procedures
• Protocol For Resolving A Suspicious Transaction
• Writing Fraud Audit Findings And The Legal Considerations Involved

6. Interviewing for Fraud in the Audit Process

• Using The Fraud Scenario Approach
• Understanding The Five Question Types
• Preparation For The Interview Process
• Managing The Reluctant Witness
• Connecting The Fraud Scenario To The Illegal Act

7. Internal Controls and Fraud

• How Controls Are Related To The Fraud Theory
• Fraud Control: Prevention, Detection, Deterrence, Prosecution, And Approval
• Fraud Prevention Programs And Policies
• How To Design Controls To Minimize Fraud
• Managing Fraud Costs
• Developing Fraud Awareness Programs

8. Misappropriation of Assets

• Disbursement Fraud Schemes
• Purchasing Fraud Schemes
• Fraud In Payroll And Human Resource Functions
• Contract Fraud Schemes
• Fraud In Revenue And Cash Receipts Functions
• Theft Of Inventory, Equipment, And Assets
• Travel Expense Fraud Schemes

9. Financial Statement Fraud

• Fraud In The Revenue Cycle
• Inventory Fraud Schemes
• Expenditure Fraud Schemes
• Journal Entry Fraud Schemes
• Management Fraud: Incentive, Opportunity And Rationalization

10. Professional Standards

• Sarbanes-Oxley And PCAOB
• SAS No. 99
• Institute Of Internal Auditors
• Yellow Book
• Current Surveys And Reports On Fraud

11. Fraud Investigation

• Identifying Resources To Conduct An Investigation
• Focusing On Fraud Theory And Development
• Using Private Investigators
• Types Of Interviews And The Appropriate Approach
• Understanding The Interview Methodology
• Legal Considerations When Conducting An Interview
• Appropriate Collection And Analysis Of Documentation
• Forensic Examination Of Documentation
• Individual Rights During Investigations
• Understanding The Civil Court Process
• How The Legal System Works
• Attorney Work Product
• Types Of Evidence
• Web Sites And Fraud Information

12. Interviewing: Admission-Seeking and Legal Elements

• Initial Steps To Securing The Admission
  • How To Confront The Suspect
  • Use Of Admission Seeking Questions
  • Managing The Denial Process
  • Using Physical Evidence
• Obtaining The Oral Confession
• What Are The Legal Considerations
  • Employees Obligation To Cooperate
  • Combating Legal Objections