IA-106 ENGAGEMENT FRAUD RISK ASSESSMENTS FOR AUDIT

IA-106 ENGAGEMENT FRAUD RISK ASSESSMENTS FOR AUDIT

DESCRIPTION

All organizations are subject to fraud risk. Association of Certified Fraud Examiners (ACFE) studies show that an average of 5% of revenue is lost to internal fraud schemes within an organization. Today internal auditors are expected to lead the charge in the fight against fraud. To accomplish this, auditors must understand how to properly identify and assess potential fraud risk and then incorporate those skills and this knowledge into their audit programs. Historically fraud detection programs and internal audit programs were separate, but today, combining these efforts provides clear advantages that organizations can benefit from.

 

This course will help individuals learn and develop the skills necessary to drive, implement, and execute an effective Fraud Risk Assessment as part of an individual engagement or as part of the overall Fraud Risk Program and then incorporate fraud detection methods into the audit engagement. This highly interactive class achieves its learning objectives through the use of case studies, exposure to best practices tools and techniques, and group exercises.

LEARNING OBJECTIVES:

  • Learning how to conduct a Fraud Risk Assessment
  • Understanding basic fraud concepts
  • Learning to identify and assess risks
  • Understanding the steps of a Fraud Risk Assessment program
  • Introducing appropriate frameworks for assessing fraud risks
  • Tools commonly used for frameworks, scorecards, and reporting templates
  • How to blend risk assessment and fraud auditing techniques into every engagement

 

COURSE OUTLINE

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 Nations
  • Fraudsters—characteristics and behaviors
  • Fraud schemes and scenarios—Corruption | Financial statement | Asset misappropriation

Conducting a Fraud Risk Assessment

  • Frameworks
  • Understanding risks | Identifying risks
  • Evaluating risks—Inherent risk/Residual risk | Likelihood and significance
  • Evaluating risks—People and departments
  • Responses to risks
  • Using Fraud Risk/Detection scorecards

Assessing Business Results for Fraud Risk

  • Examining the results and understanding the implications
  • Benchmarking | Efficiency measures
  • Performance measures and ratios—Productivity | Financial |Operating
  • Evaluating impact of results

Fraud Auditing and Detection Methods

  • What is fraud auditing? Not up, not down…sideways!
  • Adding fraud auditing steps to the audit program
  • Determining fraud audit steps—AP | Procurement | Financial statements | Payroll
  • Understanding red flags
  • When to stop auditing and start investigating

Examples of Templates and Documentation

  • Fraud Risk Assessment documentation
  • Scorecards—exposure, prevention, detection
  • Fraud risk frameworks
  • Fraud audit programs
  • Fraud policy decision matrix
  • Reporting
Duration

CPE

Delivery

Field

Level

Who Should Attend

 

Prerequisites

Advanced Preparation

2 Days

16

Group-Live

Auditing

Intermediate

Internal auditor staff and management and Financial and operational management and staff

Auditors with at least 2 years of experience

None