Course Description
In today’s Internal Audit environment, auditors are expected to be knowledgeable in all areas of their business, help a company meet its objectives through value-add auditing, and now are more and more frequently expected to catch fraud during the audit process. A standard audit catches less than 15% of existing frauds because audits are designed to test effectiveness of controls and evaluate operating efficiency, not find fraud.
This course is designed to provide the fundamentals for developing fraud audit programs and incorporating fraud detecting into the standard auditing process.
This in-depth course looks at the complete fraud tree and covers all common fraud schemes and scenarios to provide the participants with the knowledge needed to start implementing fraud auditing into their audit processes immediately. Additionally the role of audit and the proper process for auditors assisting or conducting fraud investigations will be covered.
Learning Objectives
- Understanding the fraud triangle
- Understanding fraud fundamentals
- Understanding the Fraud Tree
- Common fraud schemes and scenarios
- Characteristics of fraudsters
- Knowledge of Prevention and Detection Programs for Fraud
- Implementing fraud auditing techniques to an Audit
- Conducting investigations
Course Outline
Principals for Managing Fraud Risk in an Organization
- Governance
- Fraud Risk Assessment
- Prevention
- Detection
- Reporting
Fraud Risk Assessment Basics
- Why conduct a Fraud Risk Assessment
- Fraud Risk as part of an overall Enterprise Risk Management (ERM) Program
- Potential obstacles and pitfalls for Fraud Risk Assessments
- Best Practices in Fraud Risk Assessment
- Internal Audit’s Role
Fraud Basics
- The Fraud Triangle
- ACFE 2018 Report to the Nation – Fraud & Corruption Statistics
- Fraudsters – characteristics and behaviors
The Fraud Tree – Schemes and Scenarios
- aCorruption
- Financial Statement Fraud
- Asset Misappropriation – Cash
- Fraudulent Disbursements
- Asset Misappropriation – Inventory and Other Assets
Integrating Fraud Auditing into the Internal Audit Program
- Red Flags Common to various fraud schemes
- Identifying Red Flags during the audit
- Analyzing red Flags for actual fraud
- Fraud auditing versus Controls auditing
Using Data Analytics for Fraud Auditing
- Ratios
- Benford’s Law
- Fuzzy Analysis
Prevention Programs
- Control Activities
- Human Resources
- Anti-Fraud Training
- Assessing Fraud Prevention Programs
Detection Programs
- Detective Controls
- Continuous Auditing and Monitoring
- Hotlines
Fraud Investigations and Response
- Audit’s role in investigation’s
- Identify the barriers to effective incident response and how to avoid them
- Obstacles and challenges in investigations
- Fraud incident response checklists
- Fraud Interviewing: the basics
- Evidence and chain of custody
Additional Information
Who Should Attend
Auditors with at least 2 years’ experience in order to draw upon their professional audit experience
Learning Level
Intermediate
Delivery
Group-Live
Field
Auditing
Advanced Preparation
None
Recommended Prerequisites
General Understanding of risk and internal audit processes
Session Duration
On Site: 2 days
CPE Credits: 16