Fraud Awareness and Compliance for Managers

The purpose of this two-day course is to familiarize managers and those who support them with the theory of fraud (both Fraudulent Financial Reporting and internal (occupational)) and the risk assessment thereof. Fraud causes catastrophic damage to the reputation and finances of an organization and it is important for managers to first understand risks associated with fraud. Additionally, it is the purpose of this course to examine corporate compliance with legal requirements, ways to prevent and detect fraud and finally create responsive corporate governance structures. Course topics will include: Corporate Scandals, Theory of Fraud, COSO and Internal Control, Sarbanes-Oxley, and Antifraud Programs.

No sessions currently available. Contact client services to get the next available date.
Financial and nonfinancial managers, board members, accountants, auditors, consultants, regulators, financial journalists, investor relations and other professionals who seek a comprehensive understanding of the nature of fraud, why fraud occurs, fraud prevention measures and fraud detection techniques.
No advance preparation required.
Students will be able to:
  • Acquire a broad overview of the nature and magnitude of economic fraud as it affects a variety of entities.
  • Develop a general understanding of the role of legislation and compliance in fraud prevention and internal control.
  • Understand risk assessment as it relates to corporate fraud.
  • Explore “best practices” in fraud prevention and detection for management.
None required, although a general understanding of general business management processes and procedures is recommended.
DISCLAIMER: The information, opinions, suggestions and ideas contained in this course are NOT intended as a substitute for competent legal advice. This course only contains content of broad general usefulness and does not provide legal or other advice which may be applicable to the participant’s own use of such content. Any use of or reliance upon this course are at the user’s own risk, and the trainer and the publisher specifically disclaim any liability resulting directly or indirectly from the use, reliance or application of any of the content.
THE NATURE OF FRAUD
  • Seriousness of the Fraud Problem
  • What is Fraud?
  • Types of Fraud (Employee Embezzlement, Vendor Fraud, Customer Fraud, Management Fraud, Investment Scams and Other Consumer Frauds)
  • Criminal and Civil Prosecution of Fraud (Criminal Law, Civil Law)
  • How to Prepare to Be a Fraud-Fighting Professional (Academic and Professional Requirements)
  • Fraud-Related Careers

WHY PEOPLE COMMIT FRAUD

  • Who Commits Fraud
  • The Fraud Triangle
  • The Element of Pressure (Financial Pressures, Vice Pressures, Work-Related Pressures, Other Pressures)
  • The Element of Opportunity (Controls That Prevent and/or Detect, Fraudulent Behavior, Summary of the Controls, That Prevent or Detect Fraud, Inability to Judge the Qualify of Performance, Failure to Discipline Fraud Perpetrators, Lack of Access to Information, Ignorance, Apathy, and Incapacity, Lack of an Audit Trail)
  • The Element of Rationalization
  • Summary of the Fraud Triangle
  • Fraud Recruitment (Power)

FIGHTING FRAUDS: AN OVERVIEW

  • Knowing Different Ways That Organizations
  • Fight Fraud
  • Fraud Prevention (Creating a Culture of Honesty, and High Ethics, Assessing and Mitigating the Risk of Fraud)
  • Fraud Detection
  • Fraud Investigation (Approaches to Fraud Investigation, Conducting a Fraud Investigation)
  • Follow-Up Legal Action

PREVENTING FRAUD
  • Just About Everyone Can be Dishonest
  • Creating a Culture of Honesty, Openness, (Honest People and Providing Fraud Awareness Training, Creating a Positive Work Environment, Implementing Employee Assistance Programs (EAP))
  • Eliminating Opportunities for Fraud to Occur (Having a Good System of Internal Controls, Discouraging Collusion Between Employees, and Others and Alerting Vendors and Contractors to Company Policies, Monitoring Employees and Having a Whistle-Blowing System, Creating an Expectation of Punishment)
  • Why Insurance Fraud Succeeds (Conducting Proactive Fraud Auditing)
  • Preventing Fraud—A Summary
  • A Comprehensive Approach to Fighting Fraud
  • Organizations & Fraud—The Current Model

FRAUD DETECTION

  • RECOGNIZING THE SYMPTOMS OF FRAUD
  • Symptoms of Fraud
  • Accounting Anomalies (Irregularities in Source Documents, Faulty Journal Entries, Inaccuracies in Ledgers)
  • Internal Control Weaknesses
  • Analytical Fraud Symptoms
  • Extravagant Lifestyles
  • Unusual Behaviors
  • Tips and Complaints (Company Employees Are in the Best, Position to Detect Fraud, Tips and Complaints Are Fraud Symptoms, New Laws Protect Whistle-Blowers and Promote Fraud Detection)

DATA-DRIVEN FRAUD DETECTION

  • Anomalies vs. Frauds (Audit Sampling and Fraud)
  • The Data Analysis Process (Understand the Business, Indemnify Possible FraudsThat Could Exist, Catalog Possible Fraud Symptoms Use Technology to GatherData About Symptoms, Analyze Results, Investigate Symptoms)
  • Data Access (Open Database Connectivity, Text Import, Hosting a Data Warehouse)
  • Data Analysis Techniques (Data Preparation, Digital Analysis, Outlier Investigation, Stratification and Summarization, Time Trend Analysis, Fuzzy Matching)
  • Real-Time Analysis
  • Analyzing Financial Statement Reports

Lunch included for all students taking day classes.