The document discusses how audit and fraud examination functions can more effectively work together to combat fraud. It argues that partnering these functions could help address underfunding, improve detection of non-ethical behaviors, and change prevalent practices of self-serving greed. By embracing ongoing monitoring and working together, audit and fraud examination could positively impact organizations and help maintain strong controls. The document promotes the idea that these functions are not adversaries and that finding issues is an opportunity to correct problems, not a negative. It suggests that existing technology allows measuring the effectiveness of anti-fraud efforts.

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Joining Forces: How Audit and
Fraud Can More Effectively Divide
and Conquer
1992
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2011
2015CFE
SAS
Link Analysis &
Intelligence Analysis
US Army
Jen Dunham
SAS Security Intelligence
Background
& Experience

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CFE
SAS
Link Analysis &
Intelligence Analysis
US Army
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15
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19
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20
00
Jen Dunham
SAS Security Intelligence
Background
& Experience

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Which is why having controls in place, and making
them known can be an instrumental safeguard
in deterring some of the more preventable risks.

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Establish
Responsibility
Segregation
of Duties
Documented
Procedures
Independence
& Authority
Physical
Controls
Mechanical
Controls
Electronic
Controls
Other
Controls

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The purpose of controls – and establishing procedures and responsibilities for those
control – then measuring against those – are a significant part of ensuring an
organizations overall success. As we saw with Enron and others,
without such controls – or in the wake of negating warnings of such issues –
organizations can fail – often affecting more than just the employees and
organizations… ultimately it affects investors, communities, friends and family.
Even the slightest bit of greed, the most minute wrongdoing or an ‘innocent’ improper
payment – can be a catalyst for destruction or set in motion a culture of acceptance
of such things. These things amplify over time, becoming ingrained within the
fabric of the culture, as we came to see with the Wells Fargo fake account scandal
where management was aware and part of typical sales practices.

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Ongoing audit efforts with proactive detection can help our underfunded and
overburdened staff and can improve the overall perception and relationship across
business units.
Partnering together with fraud efforts and embracing ongoing monitoring and detection
could positively change the seemingly prevalent practices of self serving greed, non-
ethical behaviors or political influences.

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The overlap – or grey area of risk and compliance, fraud and audit or safeguards
in general, is a step in a direction I feel we need to embrace, to show executives
that this is not a necessary evil, its necessary period. Organizations that cant
perform positively without unethical actions will eventually implode, causing far
reaching damage and permanent damage to the industry.
In order to raise the bar on ‘doing the right thing’ and overcoming any notions that
businesses cant excel today without “this type of edge”; we have to show our
peers and the business community our value – which is stronger united.

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Its not us-versus them.
We must break any perception that an
audit finding or potential fraudulent
instance is negative – its an opportunity
to correct lax controls or outdated policy –
to help maintain a bright future for the
organization.

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Today, we can prove an investments value, measure against
efforts and report regularly and more easily on these
successes.

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The technology exists today – its something we have been delivering for
years – perhaps even a bit before its time – before economies of scale
such as cloud or software as a service became more mainstream, but
continues to deliver significant value to businesses year after year.

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That surface actionable results

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With evidence and context

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and measures to determine effectiveness of controls

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Thank You!
Continue the conversation with your
colleagues to find ways to work more
closely and in concert to promote
antifraud activities!