FR-103 UNDERSTANDING FRAUD, INVESTIGATING INTERNAL FRAUD, CONDUCTING INTERVIEWS, AND CONCLUDING EXAMINATIONS

FR-103 UNDERSTANDING FRAUD, INVESTIGATING INTERNAL FRAUD, CONDUCTING INTERVIEWS, AND CONCLUDING EXAMINATIONS

DESCRIPTION

As fraud awareness increases, so does the demand for prevention, detection, and investigation skills. This course will walk professionals through all the steps involved in a comprehensive fraud program: prevention and detection; investigation, including interviewing, interrogation, and working with authorities; and report writing. Today, auditors and compliance professionals are becoming more involved not only in preventing and detecting fraud, but also in full-scale fraud investigations. Historically, these are not skills that auditors and compliance professionals have learned or have been trained to do.

 

This interactive course will be taught through a combination of lecture, group exercises, and class participation.

LEARNING OBJECTIVES:

  • Learn fraud fundamentals – Fraud triangle, fraud tree
  • Fraudster characteristics
  • Fraud Risk Assessment basics
  • Identifying fraud in an organization
  • Learning how to effectively conduct investigations
  • Understanding the fundamentals of interviewing and interrogating
  • Learning how to protect information for legal action
  • Learning how to prepare fraud examination reports

 

COURSE OUTLINE

Principles for Managing Fraud Risk in an Organization

  • Governance
  • Fraud Risk Assessments
  • Prevention | Detection | Reporting

Fraud Basics Overview

  • The Fraud Triangle
  • Association of Certified Fraud Examiners (ACFE) 2018 Report to the Nations
  • Fraudsters—characteristics and behaviors

Fraud Risk Assessment Basics

  • Conducting Fraud Risk Assessments
  • 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

The Fraud Tree—Schemes and Scenarios

  • Corruption – Conflicts of interest | Bribery | Illegal gratuities | Economic extortion
  • Financial Statement Fraud – Asset and revenue overstatements/understatements
  • Asset Misappropriation—Cash
  • Asset Misappropriation—Inventory and Other Assets
  • Fraudulent Disbursements

Identifying Fraud

  • Red flags common to various fraud schemes
  • Identifying red flags during audits and reviews
  • Analyzing red flags for actual fraud
  • Fraud auditing vs. controls auditing

Using Data Analytics

  • Scoping the use of data analytics
  • Identifying the data to be mined
  • Identifying investigation objectives
  • Acquiring the data | Vetting the data
  • Ratios | Benford’s law | Fuzzy analysis

Investigations

  • Planning and conducting an investigation
  • Obtaining and analyzing information
  • Covert investigations
  • Forensics
  • Useful resources for investigations

Interviewing

  • Differences between an interview and an interrogation
  • Interview styles and techniques
  • Understanding pressure, motive, and opportunity
  • Preparing for the interview
  • Interviewing—witnesses vs. potential suspects

Interrogating

  • Interrogation techniques – Reid/Wicklander/ACFE methodologies
  • Formulating the interrogation questions
  • Suspect behavior analysis
  • Theme development
  • Handling denials, objections, and passiveness
  • Handling confessions – Converting oral to written

Reports and Reporting

  • Types of reports | Report structure and format
  • Characteristics of a good report | Trial-ready reports
  • Common mistakes
  • Visual aides
  • Legal considerations | Working with local authorities
Duration

CPE

Delivery

Field

Level

Who Should Attend

 

Prerequisites

Advanced Preparation

4 Days

32

Group-Live

Auditing

Intermediate

Internal auditor staff and management; financial and operational management and staff

Auditors with at least 2 years of experience

None