Detailed PPT on forensic accounting and Fraud investigation

1. FORENSIC ACCOUNTING
AND AUDITING

2. “FRAUD IS THE UNLAWFUL AND INTENTIONAL MAKING OF A
MISREPRESENTATION WITH THE INTENT TO DECEIVE AND TO DEFRAUD BY
CAUSING ACTUAL AND POTENTIAL PREJUDICE”
“WRONGFUL OR CRIMINAL DECEPTION INTENDED TO RESULT IN FINANCIAL OR
PERSONAL GAIN”
“UNFAIR ADVANTAGE BY UNLAWFUL OR UNFAIR MEANS”
WHAT IS FRAUD?

3. FRAUD OR ERROR
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4. WHY PEOPLE COMMIT FRAUDS-
FRAUD TRIANGLE

5. WHO IS A TYPICAL FRAUDSTER?
 PERCEIVED AS SOMEONE GREEDY AND DECEITFUL BY NATURE.
 HOWEVER, IT’S SOMEONE DRIVEN BY INFLUENCING FACTORS –
FINANCIAL WORRIES, JOB DISSATISFACTION, AGGRESSIVE TARGETS
OR SIMPLY AN OPPORTUNITY TO COMMIT FRAUD.
WHO COMMITS FRAUD?

6. KPMG GLOBAL SURVEY 2011
3%
14%
39%
31%
13%
2%
12%
41%
35%
10%
18 to 25 years old
26 to 35 years old
36 to 45 years old
46 to 55 years old
Older than 55 years
AGE OF FRAUDSTER
2011 Survey 2007 Survey

7. KPMG GLOBAL SURVEY 2011
3%
9%
32%
2%
36%
11%
2%
5%
1%
8%
25%
0%
32%
26%
7%
1%
Research & Development
Procurement
Operations/Sales
Legal
Finance
CEO
Board level
Back office
Where the fraudster works
2011 Survey 2007 Survey

8. KPMG GLOBAL SURVEY 2011
4%
9%
36%
29%
22%
1%
10%
29%
27%
33%
Less than 1
year
1 to 2 years
3 to 5 years
6 to 10 years
More than 10
years
Time at the organization
2011…
2007…

9. KPMG GLOBAL SURVEY 2011
14%
26%
49%
11%
18%
29%
35%
18%
Staff
Management
Senior Management
Board Members
Rank within the organization
2011 Survey
2007 Survey

11. EARLY DETECTION/RED FLAGS
BEHAVIOURAL RED FLAGS:
• RARELY TAKES HOLIDAYS;
• REFUSES OR DOES NOT SEEK PROMOTION AND GIVES NO REASONABLE EXPLANATION;
• DOES NOT OR WILL NOT PRODUCE RECORDS/INFORMATION VOLUNTARILY OR ON REQUEST;
• TENDS TO SHIFT BLAME AND RESPONSIBILITY FOR ERRORS;
• UNRELIABLE AND PRONE TO MISTAKES AND POOR PERFORMANCE;
• SURROUNDED BY “FAVOURITES’ OR PEOPLE WHO DON’T CHALLENGE THEM;
• LIFESTYLE SEEMS EXCESSIVE FOR INCOME;
• VOLATILE AND MELODRAMATIC, ARROGANT, CONFRONTATIONAL, THREATENING OR AGGRESSIVE
WHEN CHALLENGED;
• IS SUSPECTED TO HAVE OVER-EXTENDED PERSONAL FINANCES;

12. Planning
Accounting, Auditing
and Investigation
Reporting

13. Forensic Accounting and
Auditing Framework
Accounting Auditing Investigation
• Looking beyond
numbers and while
examining financial
reports.
• Compliances with
IFRS/GAAP and national
standards
• Reframing of accounts
based on legality and
GAAP
• Risk Assessment and
Analytical Procedures.
• Designing and
Performing extended
audit procedure
• Compliance of
standards of auditing,
where applicable
• Fixation of direction of
investigation on realistic
basis.
• Analysis of
Psychological behaviour
of human
• Evidence
documentation for legal
purpose

14. Auditing vs. Fraud Examination
Issue Auditing Fraud Examination
Timing Recurring Nonrecurring
Presumption Professional Proof
skepticism
Objective Opinion Affix blame
Scope General Specific
Relationship Non-adversarial Adversarial
Methodology Audit techniques Fraud examination
techniques

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16. FORENSIC AUDITING
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19. WHAT IS NONVERBAL COMMUNICATION?
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21. THERE ARE 7 TYPES OF NONVERBAL BEHAVIOR
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22. PROXEMICS (DISTANCE)
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24. HAPTICS (TOUCH)
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30. info@onlineglobalcareer.com