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LOGO
LOGO       Investigation
LOGO       Fraud Risk
LOGOThe Institute of Internal Auditors "Any illegal act characterized by deceit, concealment, or violation of trust. These...
LOGOAssociation of Certified Fraud Examiners "The use of ones occupation for personal enrichment through the deliberate mi...
LOGO             Legal Elements of Fraud1. A material false statement2. Knowledge that the statement was false when   it w...
LOGO                Major Categories of Fraud- Asset misappropriationsSkimming revenues, stealing inventory, and payroll f...
LOGO       Definition of Fraud
LOGO           Financial Statement FraudThe Association of Certified Fraud Examiners “The intentional, deliberate misstate...
LOGO                Financial Statement FraudMajor Areas:1. Fictitious revenue (and related assets)2. Improper timing of r...
LOGO               Financial Statement FraudThe essential characteristics:(1) The misstatement is material and intentional...
LOGO                   Managements RoleManaging Fraud Risk: Establishing a Fraud-related policy and procedures. Assessin...
LOGO               Internal Auditors Role Consider fraud risks Have sufficient knowledge of fraud to identify   red flag...
LOGO                   Internal Auditors Role Proficiency 1210.A2 – Internal auditors must have sufficient  knowledge to ...
LOGO                    Internal Auditors Role Engagement Objectives 2210.A2 – Internal auditors must  consider the proba...
LOGO                   Fraud ExaminationFraud examination is a methodology developed byACFE for resolving fraud allegation...
LOGO                  Fraud Examiner         Lawyer         Accountant       Criminologist   Investigator
LOGO       Auditing vs. Fraud Examination
LOGO       Auditing vs. Fraud Examination
LOGO       Definition of Fraud
LOGO                 Certified Fraud Examiner (CFE)1. Be an Associate member of the ACFE in good standing.2. Submit the CF...
LOGO                 Certified Fraud Examiner (CFE) 10 hours to complete the CFE Exam. Each section is allocated a maxim...
LOGO       Certified Fraud Examiner (CFE)• Fraud Prevention and Deterrence• Financial Transactions• Fraud Investigation• L...
LOGO       Certified Fraud Examiner (CFE)Get Certified
Questions   LOGO
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Into to Fraud Examination

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Into to Fraud Examination

  1. 1. LOGO
  2. 2. LOGO Investigation
  3. 3. LOGO Fraud Risk
  4. 4. LOGOThe Institute of Internal Auditors "Any illegal act characterized by deceit, concealment, or violation of trust. These acts are not dependent upon threat of violence or physical force. Frauds are perpetrated by parties and organizations to obtain money, property, or services; to avoid payment or loss of services; or to secure personal or business advantage”
  5. 5. LOGOAssociation of Certified Fraud Examiners "The use of ones occupation for personal enrichment through the deliberate misuse or misapplication of the employing organizations resources or assets.”
  6. 6. LOGO Legal Elements of Fraud1. A material false statement2. Knowledge that the statement was false when it was spoken3. Reliance on the false statement by the victim4. Damages resulting from the victim’s reliance on the false statement
  7. 7. LOGO Major Categories of Fraud- Asset misappropriationsSkimming revenues, stealing inventory, and payroll fraud.- CorruptionAccepting kickbacks and engaging in conflicts of interest.- Financial statement fraud and other fraudulent statementsOverstating revenues, understating liabilities or expenses, ormaking false promises regarding the safety and prospects ofan investment.
  8. 8. LOGO Definition of Fraud
  9. 9. LOGO Financial Statement FraudThe Association of Certified Fraud Examiners “The intentional, deliberate misstatement or omission of material facts or accounting data that is misleading and, when considered with all the information made available, that would cause the reader to change or alter his or her judgment or decision.”
  10. 10. LOGO Financial Statement FraudMajor Areas:1. Fictitious revenue (and related assets)2. Improper timing of revenue and expense recognition3. Concealed liabilities4. Inadequate and misleading disclosures5. Improper asset valuation6. Improper and inappropriate capitalization of expenses
  11. 11. LOGO Financial Statement FraudThe essential characteristics:(1) The misstatement is material and intentional.(2) Users of the financial statements have been misled.
  12. 12. LOGO Managements RoleManaging Fraud Risk: Establishing a Fraud-related policy and procedures. Assessing Fraud Risk Assessment Establishing Preventive Techniques Establishing Detective Techniques Establishing a Reporting Process
  13. 13. LOGO Internal Auditors Role Consider fraud risks Have sufficient knowledge of fraud to identify red flags Be alert to opportunities that could allow fraud Evaluate the indicators of fraud Notify the appropriate authorities
  14. 14. LOGO Internal Auditors Role Proficiency 1210.A2 – Internal auditors must have sufficient knowledge to evaluate the risk of fraud and the manner in which it is managed by the organization, but are not expected to have the expertise of a person whose primary responsibility is detecting and investigating fraud. Due Professional Care1220.A1 – Internal auditors must exercise due professional care by considering the Probability of significant errors, fraud, or noncompliance; Risk Management 2120.A2 – The internal audit activity must evaluate the potential for the occurrence of fraud and how the organization manages fraud risk.
  15. 15. LOGO Internal Auditors Role Engagement Objectives 2210.A2 – Internal auditors must consider the probability of significant errors, fraud, noncompliance, and other exposures when developing the engagement objectives. Reporting to Senior Management and the Board 2060 The chief audit executive must report periodically to senior management and the board on the internal audit activity’s purpose, authority, responsibility, and performance relative to its plan. Reporting must also include significant risk exposures and control issues, including fraud risks, governance issues, and other matters needed or requested by senior management and the board.
  16. 16. LOGO Fraud ExaminationFraud examination is a methodology developed byACFE for resolving fraud allegations from inceptionto disposition, including obtaining evidence,interviewing, writing reports, testifying to findings,and assisting in the detection and prevention offraud.
  17. 17. LOGO Fraud Examiner Lawyer Accountant Criminologist Investigator
  18. 18. LOGO Auditing vs. Fraud Examination
  19. 19. LOGO Auditing vs. Fraud Examination
  20. 20. LOGO Definition of Fraud
  21. 21. LOGO Certified Fraud Examiner (CFE)1. Be an Associate member of the ACFE in good standing.2. Submit the CFE Exam application with proof of education and professional recommendations.3. Prepare for the CFE Exam4. Pass the CFE Exam.5. Gain final approval from the certification committee and become a CFE.
  22. 22. LOGO Certified Fraud Examiner (CFE) 10 hours to complete the CFE Exam. Each section is allocated a maximum of 2.6 hours to complete. Each of the four exam sections has 125 questions. You will have a maximum of 75 seconds to answer each question. You have 30 days to complete all four sections of the CFE Exam. You must complete each section in one sitting.
  23. 23. LOGO Certified Fraud Examiner (CFE)• Fraud Prevention and Deterrence• Financial Transactions• Fraud Investigation• Legal Elements of Fraud
  24. 24. LOGO Certified Fraud Examiner (CFE)Get Certified
  25. 25. Questions LOGO

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