Internal Audit Training, IT Audit Training Courses, Information Security Training - CPE Interactive

Continuing Professional Education for Audit, Assurance, & Info Security

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Course Description

Of the numerous varieties of fraud that have plagued organizations in recent decades, financial statement or accounting schemes have proved to be the most costly, most newsworthy and hence most damaging to victim organizations’ reputations.

This course is designed to demonstrate how profoundly destructive financial statement fraud can be and to use that foundation to build a body of knowledge about how these frauds are committed … how to detect them before they “blow up” … and how to minimize the organization’s risk of being a victim of such schemes.

We will discuss:

  • Signs that someone may be planning or committing financial statement fraud
  • When and why people commit accounting schemes
  • Main forms of financial statement/accounting fraud
  • Analysis of recent well-known accounting frauds
  • How to catch financial statement fraudsters in the act
  • How to eliminate control weaknesses in order to minimize risk of financial statement fraud

Learning Objectives

  • Understand the financial statement/accounting fraud problem
  • Identify the red flags of financial statement schemes
  • Conduct a user-friendly Fraud Risk Assessment to detect control weaknesses in financial reporting
  • LEarn how to detect and investigate financial statement/accounting fraud cases
  • Build an anti-fraud control environment (including legal/regulatory requirements as well as practical “real world” examples”)

Course Outline

The Fraud Problem

  • Statistical overview of the fraud problem
  • Who commits fraud Why employees commit fraud (The Fraud Triangle)
  • Lessons from financial statement/accounting fraudsters
  • Common Types of Financial Statement/Accounting Fraud Today

Red Flags of Fraud

  • Conducting a Fraud Risk Assessment and Recognizing the Red Flags of Financial Statement Fraud
  • The Fraud Risk Mitigation Cycle
  • General and Specific Red Flags of Financial Statement Fraud

Fraud Detection and Investigation

  • How Financial Statement Frauds Are Most Often Detected
  • Additional General Detection Methods
  • Data Mining/Analytics Examples of Detective Measures at Work
  • Basic Fraud Investigation Techniques
  • Forensic Accounting Investigation
  • Forensic accounting/auditing techniques: Data Mining and Analytics
  • Gathering evidence
  • Securing a crime scene and managing the chain of custody)
  • Interviewing/interrogating suspects and non-suspects
  • Documenting findings

Anti-Fraud Controls (Prevention)

  • Internal Controls and Other Fraud Prevention Measures:
    • What Is Required By Law (Sarbanes-Oxley) (ICFR)
    • SEC Guidance for Compliance with SOX 404
    • Latest COSO standards
    • SAS 99—Auditing for Financial Reporting Fraud
    • Internal Audit Standards For Detecting Material Control Weaknesses
  • Who Should Manage Anti Fraud Activities
  • Internal Controls: Do’s and Don’t’s – Case Studies of What Works and What Doesn’t

Additional Information

Who Should Attend
  • Internal and external auditors
  • Financial accounting management (treasury and controller)
  • Accounts payable and procurement management
  • HR management
  • Legal, compliance, and ethics management
  • Corporate training managers
  • Regulators
Learning Level



Group-Live & Group Internet-Based



Advanced Preparation


Recommended Prerequisites

Basic accounting and auditing concepts.

Session Duration

Online: Two 3-hour sessions

On Site: 1 day

CPE Credits: 8