The Reason why u need FRA
Passage of the Sarbanes-Oxley Act (SOX) caused more and more companies, public and private, to assess their vulnerability to fraud and abuse. Section 404(a) of the Act requires management of public companies to assess and report on its internal financial reporting controls, largely to ensure that financial statements are fairly presented in accordance with generally accepted accounting principles (GAAP). Fraudulent financial reporting that leads to a material misstatement in the financial statements is one key risk management should assess. This assessment focuses on accounts, processes, GAAP disclosures and the assertions in the financial statements and other required disclosures. Countries in Asia do not necessarily have their own version of SOX. But they have seen the benefits in SOX in the prevention of occupational fraud. Fraud Risk Assessment is now an integral part of good corporate governance.
Such assessments aren’t new. Organizations have assessed business and organizational risks for years. But fraud risk analysis has rarely been the primary focus. Times have changed, and now many companies and organizations are considering conducting specific fraud risk assessments.
Prevent, Deter and Detect Fraud
A fraud risk assessment is designed to examine the controls specifically created to prevent, deter and detect fraud. This assessment is fraud scheme and scenario-based. Fraud risk assessments also communicate a companywide policy of zero tolerance for fraud and abuse.
To conduct an effective fraud risk assessment, follow these steps:
1. Organize and define the assessment objectives with company management and your internal audit committee. Form a team of fraud and control experts, and get senior management and audit committee buy-in: Ask them to communicate their endorsement and sponsorship of both the process and a strong antifraud program to the entire organization.
2. Determine the business and accounting process(es) to be assessed and investigated. Usually, the initial processes selected are those where fraud or abuse has previously occurred or that management has identified as critical business processes that may be susceptible to fraud or abuse.
3. Identify potential schemes and scenarios specific to the process(es) to be examined against current controls. Fraud schemes and scenarios should be selected based on the specific business process, the industry, physical location of the process operation and any known frauds or abuses concerning the process.
4. Determine the likelihood of a fraud occurring within each scheme and scenario. The Public Company Accounting Oversight Board has defined risk levels as remote, more than remote or reasonably possible, and probable. If assessing a public company, assess the risk levels in relation to SOX compliance efforts.
5. After the fraud risks for individual processes have been identified, documented, and rated as to risk level, match the controls within each process to the identified fraud risks. Determine the effectiveness of each control in preventing or providing a means of early detection for the fraud risk. Group the risks as to their probability of occurring within the process.
6. Estimate the probable loss in dollars should the fraud or abuse occur. Try to place a value on loss of reputation if that is a possible outcome.
7. Prepare recommendations for strengthening controls and present to management.
Fraud Risk Assessment Benefits
Some benefits of a fraud risk assessment are obvious — compliance with Sarbanes-Oxley, protection of company assets, and a possible increase in profitability due to a reduction in fraud losses, waste and abuse. But another important benefit doesn’t appear in financial statements or government filings: the enhanced reputation of a highly ethical company that supports a strong internal and external antifraud policy and program.
This document provides an overview of the Ontario Lottery and Gaming Corporation's (OLG) facial recognition program to support its voluntary self-exclusion program. It discusses defining the requirements of the self-exclusion program, how facial recognition and biometric encryption technologies work and ensure privacy, the role of security officers, and future directions for the program.
Society of Corporate Compliance and Ethics SCCE 2015 developing an effective ...Craig Taggart MBA
Areas Covered in the Webinar:
Identify fraud risks and the factors that influence them
Analyze existing risk management frameworks and their application to managing fraud risk
Develop and implement the necessary components of a successful fraud risk management program
Identify the elements of a strong ethical corporate culture
Conduct a cost effective fraud risk assessment
The document discusses organizing a 1-day course on understanding and developing a fraud risk management program for organizations. The course aims to help participants understand the business case for managing fraud risk, develop a COSO-consistent fraud risk management program, and evaluate existing fraud risk management programs. The course will cover topics like defining fraud risk, roles and responsibilities in fraud risk management, coordinating governance, risk management and compliance to prevent fraud, assessing fraud risk, and monitoring fraud risk management. It will be jointly organized and feature two trainers with experience in fraud examination, digital forensics certification, and financial crime consulting.
Riskpro India is a specialized Risk Management Consulting firm providing risk management advisory, risk trainings, internal audits, forensic accounting, investigations, fraud prevention, process reviews services etc.
Today all organizations are subject to fraud risks. Large frauds have led to the downfall of entire organizations, massive investment losses, significant legal costs, incarceration of key individuals, and erosion of confidence in capital markets, Consequently as part of an organization’s governance structure, a fraud risk management program should be in place, including a written policy to convey the expectations of the board of directors and senior management regarding managing fraud risk.
Knowing present corporate focus and need for improved fraud risk governance & management, we’re pleased to launch our Fraud Risk Consulting services in addition to our existing bouquet of Risk advisory, Consulting, Training & Human Capital Services. Our services are offered through our multi location delivery centres in major metros with total presence in 11 Indian cities network.
“We are quoted in recent Economic Times news as among fastest
The document discusses developing a fraud risk management program for an organization. It states that fraud risk management can be handled internally or outsourced, and is affected by factors like company size and culture. Any fraud prevention model should aim to prevent, deter, disrupt, identify and prosecute fraud. The document then lists steps to develop an effective fraud risk management program, such as having fraud prevention as part of the overall risk strategy, establishing policies and controls, training employees, and having whistleblower and reporting systems.
Addressing Fraud Risk Management with FactsInfosys BPM
Fraud is identified and caught with the aid of facts. Facts give a deeper understanding to what you could be looking at in your organization. Facts have also given rise to the mnemonic that Fraud is Always Committed by Trusted Souls. As simplistic as it may seem, it holds key to a potential trigger. Are you equipped with the necessary tools to address this challenge? Is your organization equipped with fraud Risk Management? Here are some quick slides to take you through what you need to have.
Rahul Bhan has been awarded the professional designation of Certified Internal Auditor by the Institute of Internal Auditors. The certificate recognizes that Rahul Bhan has met the requirements for certification established by the Institute. The certificate was conferred by the Board of Regents and Board of Directors of the Institute in November 2006.
The presentation provides overall insight of operational fraud risk management. It explains the operational fraud risk and mitigation strategies. The role of Internal audit and audit committee is further exemplified
This document provides an overview of the Ontario Lottery and Gaming Corporation's (OLG) facial recognition program to support its voluntary self-exclusion program. It discusses defining the requirements of the self-exclusion program, how facial recognition and biometric encryption technologies work and ensure privacy, the role of security officers, and future directions for the program.
Society of Corporate Compliance and Ethics SCCE 2015 developing an effective ...Craig Taggart MBA
Areas Covered in the Webinar:
Identify fraud risks and the factors that influence them
Analyze existing risk management frameworks and their application to managing fraud risk
Develop and implement the necessary components of a successful fraud risk management program
Identify the elements of a strong ethical corporate culture
Conduct a cost effective fraud risk assessment
The document discusses organizing a 1-day course on understanding and developing a fraud risk management program for organizations. The course aims to help participants understand the business case for managing fraud risk, develop a COSO-consistent fraud risk management program, and evaluate existing fraud risk management programs. The course will cover topics like defining fraud risk, roles and responsibilities in fraud risk management, coordinating governance, risk management and compliance to prevent fraud, assessing fraud risk, and monitoring fraud risk management. It will be jointly organized and feature two trainers with experience in fraud examination, digital forensics certification, and financial crime consulting.
Riskpro India is a specialized Risk Management Consulting firm providing risk management advisory, risk trainings, internal audits, forensic accounting, investigations, fraud prevention, process reviews services etc.
Today all organizations are subject to fraud risks. Large frauds have led to the downfall of entire organizations, massive investment losses, significant legal costs, incarceration of key individuals, and erosion of confidence in capital markets, Consequently as part of an organization’s governance structure, a fraud risk management program should be in place, including a written policy to convey the expectations of the board of directors and senior management regarding managing fraud risk.
Knowing present corporate focus and need for improved fraud risk governance & management, we’re pleased to launch our Fraud Risk Consulting services in addition to our existing bouquet of Risk advisory, Consulting, Training & Human Capital Services. Our services are offered through our multi location delivery centres in major metros with total presence in 11 Indian cities network.
“We are quoted in recent Economic Times news as among fastest
The document discusses developing a fraud risk management program for an organization. It states that fraud risk management can be handled internally or outsourced, and is affected by factors like company size and culture. Any fraud prevention model should aim to prevent, deter, disrupt, identify and prosecute fraud. The document then lists steps to develop an effective fraud risk management program, such as having fraud prevention as part of the overall risk strategy, establishing policies and controls, training employees, and having whistleblower and reporting systems.
Addressing Fraud Risk Management with FactsInfosys BPM
Fraud is identified and caught with the aid of facts. Facts give a deeper understanding to what you could be looking at in your organization. Facts have also given rise to the mnemonic that Fraud is Always Committed by Trusted Souls. As simplistic as it may seem, it holds key to a potential trigger. Are you equipped with the necessary tools to address this challenge? Is your organization equipped with fraud Risk Management? Here are some quick slides to take you through what you need to have.
Rahul Bhan has been awarded the professional designation of Certified Internal Auditor by the Institute of Internal Auditors. The certificate recognizes that Rahul Bhan has met the requirements for certification established by the Institute. The certificate was conferred by the Board of Regents and Board of Directors of the Institute in November 2006.
The presentation provides overall insight of operational fraud risk management. It explains the operational fraud risk and mitigation strategies. The role of Internal audit and audit committee is further exemplified
The Structural Approach to
Investigating Financial Statement
Fraud is the specialty practice
area of examiners that describes
engagements that result from
actual or anticipated disputes or
litigation. In litigation, 'Forensic'
means suitable for use in Court,
and it is to that standard and
potential outcome that fraud
examiners generally have to work.
Certified System Investigators
(CSI), Fraud Examiners (CFE) and
Forensic accountants (CPA) often
have to give expert evidence at the
eventual trial. All of the larger
accounting firms, as well as many
medium-sized and boutique firms,
have specialist forensic
accounting departments. Within
these groups, there may be further
sub-specializations: some forensic
accountants may, for example, just
specialize in insurance claims,
personal injury claims, fraud,
construction, or royalty audits.
This is where the distinction lies:
While Accounting firms do only
“Forensic Accounting” CSIs and
CFEs perform Investigations in
Financial Statement Fraud. This is
not the same thing — one is post
event, the other one is
pre-emptive.
Engagements relating to criminal
matters typically arise in the
aftermath of fraud. They frequently
involve the assessment of
accounting systems and accounts
presentation - in essence
assessing if the numbers reflect
reality. The CSI and CFE
determines whether there has
been any audit failure on the part
of the Accounting firm. This
seminar will train participants to
change from a justification mindset
to a pre-emptive mindset. It will
help them develop the capability to
render a service that can answer
the following questions, “What
have gone wrong? Could it have
been prevented in the first place?
Who is responsible for the mess?
The general idea is essentially to
prevent financial statement frauds
and when it does occur, how to
contain the damage and recognize
who is responsible for what in the
whole scheme of things.
Improving and Implementing Internal ControlsTommy Seah
Implementing and Improving Internal Controls
Articulating the increasing need for comprehensive in-house fraud control procedures
• Optimizing the accuracy and reliability of data acquired through internal inspections
• Detailing the process of applying controls inside the organization, and demonstrating the outcome
This two-day internal controls masterclass provides an in-depth understanding of fraud prevention, detection, and investigation. Day one covers investigative auditing methodology and detecting systemic weaknesses. Day two focuses on asset misappropriation schemes and fictitious disbursements. The class addresses legal/accounting rules for auditors and explores collusion and corruption. It aims to help organizations reduce fraud losses through analytical principles and strengthened internal controls.
This document provides an overview of operational risk and risk management. It defines operational risk as "the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events." It outlines the scope of operational risks, including both internal risks from failures and external strategic risks. It also describes the causes, events, and consequences of operational risks, as well as the role and processes of operational risk management programs, including risk identification, assessment, measurement, monitoring, and mitigation.
The document discusses how regulatory requirements related to anti-money laundering, counter-terrorism financing, and anti-bribery are converging. It notes that money laundering, corruption, and bribery are intrinsically linked. It also describes how risk assessment and due diligence processes must cover areas such as know your customer, transaction monitoring, and sanctions screening to address these converging compliance needs.
The document discusses how regulatory drivers around anti-money laundering, counter-terrorism financing, and anti-bribery and corruption are converging and requiring organizations to adopt a consistent and more efficient enterprise risk model to manage risks across different functions like auditing, credit, procurement, and security. It also outlines how organizations can realize a consistent risk assessment and due diligence process through the use of tools and services that simplify due diligence checks, ongoing monitoring, and third party risk management.
This document provides information about an upcoming two-day internal controls masterclass event, including an overview of the event agenda, speaker biography, registration details, and booking conditions. The event will focus on investigative auditing, detecting fraud, understanding asset misappropriation schemes, and strengthening internal controls. The target attendees are professionals involved in fraud prevention, detection, and investigation.
This document provides information about the CSI World Headquarters 2009 Annual Investigation, Fraud, Systemic Risk Management Conference taking place on May 26-27, 2009 in Kuala Lumpur, Malaysia. The conference objectives are to provide tools and techniques to assist professionals in understanding systemic risk challenges and to feature four unique tracks catering to different experience levels. The detailed two-day agenda outlines sessions on topics such as managing reputational risk, fraud risk assessment, investigative profiling, forensic techniques, IT security, and digital forensics. Masterclasses on financial analysis and other subjects will also be offered after the conference.
CSI 2009 Conference Brochure after early bird discountTommy Seah
This document provides information about the CSI World Headquarters 2009 Annual Investigation, Fraud, Systemic Risk Management Conference taking place on May 26-27, 2009 in Kuala Lumpur, Malaysia. The conference objectives are to provide tools and techniques to assist professionals in understanding systemic risk challenges and to feature four unique tracks catering to different experience levels. The detailed two-day agenda outlines sessions on topics such as managing reputational risk, fraud risk assessment, investigative profiling, forensic techniques, IT security, and digital forensics. Masterclasses on financial analysis and other subjects will also be offered after the conference.
The document summarizes an upcoming conference hosted by CSI World Headquarters in Kuala Lumpur, Malaysia from May 26-27, 2009. The conference will focus on investigation, fraud, and systemic risk management, and will provide tools and techniques for professionals from audit, IT, and fraud examination. It will feature keynote speakers and multiple tracks catering to different experience levels. Attendees will learn the latest strategies for risk assessment, fraud prevention, and more from leading international practitioners.
The document announces the 2009 Annual CSI Systemic Risk Conference to be held in Kuala Lumpur, Malaysia on May 26th. It provides information on the conference objectives, which are to provide tools and techniques to assist professionals in understanding systemic risk challenges in audit, IT and fraud examination. The conference will feature keynote speakers and a combination of plenary and case study sessions led by senior fraud practitioners and risk management specialists. It encourages professionals to register to stay ahead of the technology curve and learn from leading international and domestic practitioners.
Risk Based Approach Bachir El Nakib July 2009 [Compatibility Mode]bashirnakib
The document discusses building a risk profile and outlines a risk-based approach to anti-money laundering compliance. It covers developing risk-based know-your-customer procedures, identifying different types of risks, and enhancing due diligence for high-risk customers. The document also discusses regulatory concerns, compliance requirements and recent enforcement actions to emphasize the importance of a robust risk-based approach.
The document outlines an agenda for a 2009 conference on internal audit solutions that will discuss the evolving roles of the Chief Risk Officer and Chief Audit Executive, strategies for an effective partnership between these roles, and how the current economic crisis has impacted enterprise risk management approaches. It also provides background on the development of these risk management roles and compares the key responsibilities of the Chief Risk Officer and Chief Audit Executive.
The document advertises the 2009 CSI World Headquarters Annual Investigation, Fraud, and Systemic Risk Management Conference taking place from May 26-27 in Kuala Lumpur, Malaysia. The conference chair, Tommy Seah, invites attendees to learn about integrating CSI into auditing and understanding organizational risks. The conference will provide tools and techniques for understanding systemic risk challenges and feature speakers on topics like fraud, risk assessment, and cybercrime. Attendees can become a Certified Systems Investigator to gain critical knowledge in financial analysis, data security, and data analytics.
This document discusses challenges facing risk management in financial institutions. It outlines the current state of increasing regulations, standards, and frameworks. It then discusses four main challenges: 1) Improving efficiency as redundant systems and processes have reduced efficiency. 2) Growing frustration with ongoing new regulations. 3) Keeping pace with increasing business growth and complex products while supporting revenue goals. 4) The complex environment is making it difficult to attract and retain specialized talent.
This document provides information about a multi-day training workshop on credit risk management. The workshop will be held quarterly in 2009 at a hotel in Kuala Lumpur, Malaysia. It will be led by Tommy Seah, a certified fraud examiner and expert in financial management. The workshop aims to help participants better analyze financial statements and credit risks. It will cover topics like sound financial management, cash flow analysis, and loan monitoring techniques. The intended audience includes professionals in banking, auditing, credit, and finance. The document provides registration details, instructor background, and contact information to sign up.
Embedding the Business Continuity Management in the organizations culture means, making it a natural part of; and therefore embedded BCM would be, making the BCM an integral or natural part of the organizational processes and procedures.
Mela Capital Group provides mortgage quality control and risk mitigation services. They help clients address regulatory issues, litigation risks, and operational deficiencies to avoid costly buybacks and legal exposure. Their services include pre-funding and post-funding audits, fraud detection, compliance oversight, training, and customized quality control programs. With extensive experience auditing loans and assisting in litigation and regulatory matters, Mela Capital Group offers clients a full suite of solutions to manage mortgage risk.
This document discusses how financial services firms are converging their finance, risk, compliance and treasury functions in response to regulatory pressures and market changes. It outlines trends driving this convergence, including increased complexity, competition and regulatory uncertainty. Firms must ensure financial and strategic decisions minimize risk exposure and consider impacts on customers, transactions and investments. The document also examines priorities firms are investing in, such as risk management and compliance, and how better integrating data and perspectives across divisions can help optimize goals around profitability and risk management. Examples of scenarios where converged information strategies could help with regulatory reporting and capital adequacy assessments are also provided.
This document provides an overview of the Corporate Culture Index (CCI), which aims to measure and report on a company's culture and integrity. The CCI collects data on culture through employee surveys, ethics reporting, and suggestions. It analyzes data on dimensions like ethics and risk management. Subscription types determine access to aggregated or individualized reporting data. The CCI seeks to provide transparency into corporate culture for various stakeholders like investors, auditors, and the public.
It will happen when you least expect it. There will always be allegation of fraud and
employee misdemeanour. This is a perennial truth. The question that needs to be addressed
is how do we go about managing such allegations.
In recent years, a variety of laws and regulations have emerged in Singapore and Malaysia,
providing organizations with an array of criteria to incorporate into their antifraud
efforts. But for all practical purpose there is no law on managing fraud allegation.
In the wake of high-profile corporate scandals as well as new regulations worldwide,
many business leaders are increasingly aware of the need to create company-specific
antifraud measures to address internal corporate fraud and employee misconduct.
While acknowledging that no single approach to fraud risk management can fit every
organizations needs, this seminar focus on key practices that organizations have
generally found to be effective when tailoring a company-specific fraud allegation
investigation program and offers a strategic approach to aligning corporate values
with employees performance.
The Federal Bureau of Investigation, financial institutions and merchants are always on
the lookout for scam artists. One of the most common and unregulated industry where
fraud is most prevalent and perpetrated on a daily basis is in the area of Management
Consultancy. Almost every unemployed and unemployable individual calls themselves
Management CONsultants.
The technique to know whether you have been a victim is to examine the deliverables.
Look at the concepts closely. If they cannot even get the fundamentals right, you know
that it is REALLY a CONsultancy firm.
ProEdge Global Sdn. Bhd.
Suite: 33-01, 33rd Floor,
Menara Keck Seng,
203 Jalan Bukit Bintang,
55100 Kuala Lumpur, Malaysia.
Tel : +603-2116 5671
HP : +6016-338 9783
kenneth@proedgeglobal.com
More Related Content
Similar to Fraud Risk Management - Road Show in KL, Malaysia
The Structural Approach to
Investigating Financial Statement
Fraud is the specialty practice
area of examiners that describes
engagements that result from
actual or anticipated disputes or
litigation. In litigation, 'Forensic'
means suitable for use in Court,
and it is to that standard and
potential outcome that fraud
examiners generally have to work.
Certified System Investigators
(CSI), Fraud Examiners (CFE) and
Forensic accountants (CPA) often
have to give expert evidence at the
eventual trial. All of the larger
accounting firms, as well as many
medium-sized and boutique firms,
have specialist forensic
accounting departments. Within
these groups, there may be further
sub-specializations: some forensic
accountants may, for example, just
specialize in insurance claims,
personal injury claims, fraud,
construction, or royalty audits.
This is where the distinction lies:
While Accounting firms do only
“Forensic Accounting” CSIs and
CFEs perform Investigations in
Financial Statement Fraud. This is
not the same thing — one is post
event, the other one is
pre-emptive.
Engagements relating to criminal
matters typically arise in the
aftermath of fraud. They frequently
involve the assessment of
accounting systems and accounts
presentation - in essence
assessing if the numbers reflect
reality. The CSI and CFE
determines whether there has
been any audit failure on the part
of the Accounting firm. This
seminar will train participants to
change from a justification mindset
to a pre-emptive mindset. It will
help them develop the capability to
render a service that can answer
the following questions, “What
have gone wrong? Could it have
been prevented in the first place?
Who is responsible for the mess?
The general idea is essentially to
prevent financial statement frauds
and when it does occur, how to
contain the damage and recognize
who is responsible for what in the
whole scheme of things.
Improving and Implementing Internal ControlsTommy Seah
Implementing and Improving Internal Controls
Articulating the increasing need for comprehensive in-house fraud control procedures
• Optimizing the accuracy and reliability of data acquired through internal inspections
• Detailing the process of applying controls inside the organization, and demonstrating the outcome
This two-day internal controls masterclass provides an in-depth understanding of fraud prevention, detection, and investigation. Day one covers investigative auditing methodology and detecting systemic weaknesses. Day two focuses on asset misappropriation schemes and fictitious disbursements. The class addresses legal/accounting rules for auditors and explores collusion and corruption. It aims to help organizations reduce fraud losses through analytical principles and strengthened internal controls.
This document provides an overview of operational risk and risk management. It defines operational risk as "the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events." It outlines the scope of operational risks, including both internal risks from failures and external strategic risks. It also describes the causes, events, and consequences of operational risks, as well as the role and processes of operational risk management programs, including risk identification, assessment, measurement, monitoring, and mitigation.
The document discusses how regulatory requirements related to anti-money laundering, counter-terrorism financing, and anti-bribery are converging. It notes that money laundering, corruption, and bribery are intrinsically linked. It also describes how risk assessment and due diligence processes must cover areas such as know your customer, transaction monitoring, and sanctions screening to address these converging compliance needs.
The document discusses how regulatory drivers around anti-money laundering, counter-terrorism financing, and anti-bribery and corruption are converging and requiring organizations to adopt a consistent and more efficient enterprise risk model to manage risks across different functions like auditing, credit, procurement, and security. It also outlines how organizations can realize a consistent risk assessment and due diligence process through the use of tools and services that simplify due diligence checks, ongoing monitoring, and third party risk management.
This document provides information about an upcoming two-day internal controls masterclass event, including an overview of the event agenda, speaker biography, registration details, and booking conditions. The event will focus on investigative auditing, detecting fraud, understanding asset misappropriation schemes, and strengthening internal controls. The target attendees are professionals involved in fraud prevention, detection, and investigation.
This document provides information about the CSI World Headquarters 2009 Annual Investigation, Fraud, Systemic Risk Management Conference taking place on May 26-27, 2009 in Kuala Lumpur, Malaysia. The conference objectives are to provide tools and techniques to assist professionals in understanding systemic risk challenges and to feature four unique tracks catering to different experience levels. The detailed two-day agenda outlines sessions on topics such as managing reputational risk, fraud risk assessment, investigative profiling, forensic techniques, IT security, and digital forensics. Masterclasses on financial analysis and other subjects will also be offered after the conference.
CSI 2009 Conference Brochure after early bird discountTommy Seah
This document provides information about the CSI World Headquarters 2009 Annual Investigation, Fraud, Systemic Risk Management Conference taking place on May 26-27, 2009 in Kuala Lumpur, Malaysia. The conference objectives are to provide tools and techniques to assist professionals in understanding systemic risk challenges and to feature four unique tracks catering to different experience levels. The detailed two-day agenda outlines sessions on topics such as managing reputational risk, fraud risk assessment, investigative profiling, forensic techniques, IT security, and digital forensics. Masterclasses on financial analysis and other subjects will also be offered after the conference.
The document summarizes an upcoming conference hosted by CSI World Headquarters in Kuala Lumpur, Malaysia from May 26-27, 2009. The conference will focus on investigation, fraud, and systemic risk management, and will provide tools and techniques for professionals from audit, IT, and fraud examination. It will feature keynote speakers and multiple tracks catering to different experience levels. Attendees will learn the latest strategies for risk assessment, fraud prevention, and more from leading international practitioners.
The document announces the 2009 Annual CSI Systemic Risk Conference to be held in Kuala Lumpur, Malaysia on May 26th. It provides information on the conference objectives, which are to provide tools and techniques to assist professionals in understanding systemic risk challenges in audit, IT and fraud examination. The conference will feature keynote speakers and a combination of plenary and case study sessions led by senior fraud practitioners and risk management specialists. It encourages professionals to register to stay ahead of the technology curve and learn from leading international and domestic practitioners.
Risk Based Approach Bachir El Nakib July 2009 [Compatibility Mode]bashirnakib
The document discusses building a risk profile and outlines a risk-based approach to anti-money laundering compliance. It covers developing risk-based know-your-customer procedures, identifying different types of risks, and enhancing due diligence for high-risk customers. The document also discusses regulatory concerns, compliance requirements and recent enforcement actions to emphasize the importance of a robust risk-based approach.
The document outlines an agenda for a 2009 conference on internal audit solutions that will discuss the evolving roles of the Chief Risk Officer and Chief Audit Executive, strategies for an effective partnership between these roles, and how the current economic crisis has impacted enterprise risk management approaches. It also provides background on the development of these risk management roles and compares the key responsibilities of the Chief Risk Officer and Chief Audit Executive.
The document advertises the 2009 CSI World Headquarters Annual Investigation, Fraud, and Systemic Risk Management Conference taking place from May 26-27 in Kuala Lumpur, Malaysia. The conference chair, Tommy Seah, invites attendees to learn about integrating CSI into auditing and understanding organizational risks. The conference will provide tools and techniques for understanding systemic risk challenges and feature speakers on topics like fraud, risk assessment, and cybercrime. Attendees can become a Certified Systems Investigator to gain critical knowledge in financial analysis, data security, and data analytics.
This document discusses challenges facing risk management in financial institutions. It outlines the current state of increasing regulations, standards, and frameworks. It then discusses four main challenges: 1) Improving efficiency as redundant systems and processes have reduced efficiency. 2) Growing frustration with ongoing new regulations. 3) Keeping pace with increasing business growth and complex products while supporting revenue goals. 4) The complex environment is making it difficult to attract and retain specialized talent.
This document provides information about a multi-day training workshop on credit risk management. The workshop will be held quarterly in 2009 at a hotel in Kuala Lumpur, Malaysia. It will be led by Tommy Seah, a certified fraud examiner and expert in financial management. The workshop aims to help participants better analyze financial statements and credit risks. It will cover topics like sound financial management, cash flow analysis, and loan monitoring techniques. The intended audience includes professionals in banking, auditing, credit, and finance. The document provides registration details, instructor background, and contact information to sign up.
Embedding the Business Continuity Management in the organizations culture means, making it a natural part of; and therefore embedded BCM would be, making the BCM an integral or natural part of the organizational processes and procedures.
Mela Capital Group provides mortgage quality control and risk mitigation services. They help clients address regulatory issues, litigation risks, and operational deficiencies to avoid costly buybacks and legal exposure. Their services include pre-funding and post-funding audits, fraud detection, compliance oversight, training, and customized quality control programs. With extensive experience auditing loans and assisting in litigation and regulatory matters, Mela Capital Group offers clients a full suite of solutions to manage mortgage risk.
This document discusses how financial services firms are converging their finance, risk, compliance and treasury functions in response to regulatory pressures and market changes. It outlines trends driving this convergence, including increased complexity, competition and regulatory uncertainty. Firms must ensure financial and strategic decisions minimize risk exposure and consider impacts on customers, transactions and investments. The document also examines priorities firms are investing in, such as risk management and compliance, and how better integrating data and perspectives across divisions can help optimize goals around profitability and risk management. Examples of scenarios where converged information strategies could help with regulatory reporting and capital adequacy assessments are also provided.
This document provides an overview of the Corporate Culture Index (CCI), which aims to measure and report on a company's culture and integrity. The CCI collects data on culture through employee surveys, ethics reporting, and suggestions. It analyzes data on dimensions like ethics and risk management. Subscription types determine access to aggregated or individualized reporting data. The CCI seeks to provide transparency into corporate culture for various stakeholders like investors, auditors, and the public.
Similar to Fraud Risk Management - Road Show in KL, Malaysia (20)
It will happen when you least expect it. There will always be allegation of fraud and
employee misdemeanour. This is a perennial truth. The question that needs to be addressed
is how do we go about managing such allegations.
In recent years, a variety of laws and regulations have emerged in Singapore and Malaysia,
providing organizations with an array of criteria to incorporate into their antifraud
efforts. But for all practical purpose there is no law on managing fraud allegation.
In the wake of high-profile corporate scandals as well as new regulations worldwide,
many business leaders are increasingly aware of the need to create company-specific
antifraud measures to address internal corporate fraud and employee misconduct.
While acknowledging that no single approach to fraud risk management can fit every
organizations needs, this seminar focus on key practices that organizations have
generally found to be effective when tailoring a company-specific fraud allegation
investigation program and offers a strategic approach to aligning corporate values
with employees performance.
The Federal Bureau of Investigation, financial institutions and merchants are always on
the lookout for scam artists. One of the most common and unregulated industry where
fraud is most prevalent and perpetrated on a daily basis is in the area of Management
Consultancy. Almost every unemployed and unemployable individual calls themselves
Management CONsultants.
The technique to know whether you have been a victim is to examine the deliverables.
Look at the concepts closely. If they cannot even get the fundamentals right, you know
that it is REALLY a CONsultancy firm.
ProEdge Global Sdn. Bhd.
Suite: 33-01, 33rd Floor,
Menara Keck Seng,
203 Jalan Bukit Bintang,
55100 Kuala Lumpur, Malaysia.
Tel : +603-2116 5671
HP : +6016-338 9783
kenneth@proedgeglobal.com
Psychology of fraud 50 pages for comment by tommy seah number one fraud busterTommy Seah
This document provides an overview and summary of a book on the psychology of fraud, gender bias, and interview techniques. It discusses the definition of fraud and how to identify it, the factors that lead to fraud, limitations of internal controls, differences in male and female psychology and motivation for fraud. The bulk of the document focuses on effective interview techniques to determine the truth in a fair and ethical manner. It provides guidance on red flags for fraud, best practices for interviewing witnesses, detecting deception, verifying information and effective note taking.
Financial Statement Fraud training by Tommy SEAHTommy Seah
This document advertises and provides details about a 2-day workshop on detecting and preventing financial statement fraud hosted by ProEdge Global.
The workshop aims to provide an overview of different types of financial fraud, with a focus on financial statement fraud. Attendees will learn practical techniques to combat financial statement fraud from an expert in the field.
The workshop is intended for corporate leaders, financial professionals, accountants, and auditors who want to improve their ability to detect, respond to, and prevent financial statement fraud.
The way to understand anything
in life is to first understand the
fundamental concept that is
involve. For a subject like
“Effective Cash Management”,
the first thing to understand is
the difference between liquidity
and stupidity. Cash flow is the
lifeblood of a company and is
fundamental to its very existence.
Finance professionals must
understand how their decisions on
investment, operations and
financing lead to specific cash flow
moverments within the business
system. Part of the manager’s job
is to maintain an appropriate
balance between inflows and
outflows of cash. Unfortunately, an
intricate understanding of how
cash flows within company eludes
most business personnel.
How will this EFRM course benefit you?
After completion you will be able to:
• identify risks which could result in fraud
• provide recommendations to executive / senior management in managing fraud risk
• identify warning signs of fraud in operational audits
• develop Fraud ICQ to look at fraud issues
Dear Delegates,
Corporate fraud costs businesses hundreds of millions of dollars each year. It affects livelihoods and is a common
cause of corporate failure. It is the responsibility of the board of directors to prevent fraud by putting in places the
appropriate controls and review procedures. This program shows you why Accounting Information System (AIS)
Threats are ever increasing. Control risks have also increased in the last few years because there are computers
and servers everywhere, and information is available to an unprecedented number of workers. Distributed
computer networks make data available to many users, and these networks are harder to control than centralized
mainframe systems. With the introduction of 3 levels of COSO and value driven ERM, things should be under
control. Recent events at SATYAM proves that in reality things are getting out of control. So, what went wrong ?
Is it time to train the auditors ?
Recognising the challenges that organisations are facing in combating Fraud, CSI In Practice is pleased to present
this 2-days Workshop on Enterprise Fraud Risk Management. This will serve as an excellent opportunity to learn how
best to conduct an internal investigation to protect your organization and step up on controls to deter fraud.
Encouraging a whistle-blowing culture
as a way of upholding the highest
ethical behaviour
n set up the framework for protective
channels of reporting
n Overcoming hindering cultural issues of
whistle-blowing
sTAnLEy CHIA, manaGinG Director
CFe INTeRNaTIONaL CONSULTaNCY GROUP
(MEMBER Of THE CfE-In-PRACTICE GROuP Of COMPAnIEs)
Understanding Procurement Fraud by Tommy SeahTommy Seah
Dear Delegates,
Purchasing fraud is on the rise. Companies today do not just face risks from internal fraud but also
from external criminals who are technologically savvy. The important role on combating fraud plays in
minimising financial losses is fast gaining ground. CFE-In-Practice experts is providing you
with practical advice on how to “look for red flags” and symptoms of fraud. Discover
why some numbers do not add up. Mitigate this fraud risk management by learning
the latest strategies that can be adapted to your company. This event will also cover
investigation and prevention, most importantly how to structure your business processes to minimise
the risks whilst maintaining operational efficiency.
Recognising the challenges that organisations are facing in combating Purchasing Fraud, CSI
In Practice is pleased to present this 2-days Workshop on Understanding Procurement Fraud -
Investigation & Resolution. This will serve as an excellent opportunity to learn how best to conduct
an internal investigation to protect your organization and step up on controls to deter fraud.
Ethics and Integrity by Tommy Seah- A Value Added Audit on EnvironmentTommy Seah
A Value-Added Audit
On ETHICS and AUDITORS DUTIES
(Assessing Organizational and Individual Ethics)
By
Tommy Seah
World Class trainer for practicing auditors
BACKGROUND
13th Aug 2009, Hotel Rendezvous, Singapore
BACKGROUND
The continuing influence and impact which personal and professional ethics exerts upon
individuals, organizations and society, and the factors which influence organizational ethics,
has been thrust into the headlines of the populous. The ethical issues faced daily by
organizations and their employees are neither always straightforward nor easy to resolve.
Results of unethical behavior by accounting/audit professionals, and the impact of ethics upon
organizations, is a topic of growing concern in corporate board rooms around the world. This
one day seminar will examine the timely and important topic of ethics and its relevance and
importance to overall corporate wellbeing. In particular, what factors influence the likelihood
that an individual will act ethically or less than ethical, and what this means to management,
the organization, and internal controls in general. It also examines the question, if the
auditors are doing all that they are suppose to do, in the manner that they are suppose to do
it, why does fraud still occurs?
OBJECTIVES
OBJECTIVES
After completing this seminar, participants will be able to:
Understand SEATA and understand the interrelated nature of organizational functions and
components as they relate to establishing an ethically compliant organization
CFE Strategic
Alliances
Jointly Organized by Endorsed by
Certified System Investigator
CSI World Headquarters, Singapore
(CSI CPE Credits: 8)
CFE International
Consultancy Group
Private Limited
Identify the role of organizational values in driving strategic goals and objectives
Discover the role that personal values play in driving individual employee choices and
decisions
Develop an ethics assessment tool designed to evaluate an organization's compliance to
stated ethics policies
Pinpoint the underlying causes of patterns of unethical and/or undesired employee behavior
Reduce the incidence of employee conflict between the intended change and their personal
ethical standards and expectations
Increase employee commitment to organizational goals and objectives
Traditionally, the practice of risk management comprises acceptance, transfer...Tommy Seah
Traditionally, the practice of risk management comprises acceptance, transference, elimination, control, sharing, insurance and avoidance of a diverse array of risks. Risk management and internal control business models have subsequently been devised which cater for all eventualities - categorised by terms such as business, operational and reputational risk.
FOREIGN EXCHANGE MANAGEMENT AUDIT - FOREX AUDIT by TOMMY SEAHTommy Seah
This course is aimed at those who wish to gain an understanding of the management techniques, concepts and practices in Foreign Exchange Management and control. This course is for you who are auditing the bank or somehow have an interest in the management and control of forex activities. It will also appeal to Backroom staff whose nature of work necessitates a good grasp of FOREX and Money Market activities. This is not a general course. It is specially tailored to suit the needs of the Bank Internal Auditors. It provides the Auditor with the necessary concepts, practice and program to conduct an FX Audit. The immediate benefit in attending this coaching session is that you get a complete Audit Programme on FOREX.
Understanding the strategies for improving and managing the risk/return profile and performance of forex position is crucial for successful Treasury Management. This coaching session includes a conceptual overview of Treasury Management concepts, such as line distribution, dealer correlation and valuation of position. Key forex inputs and outputs are defined using hands-on exercises with the CFE-In-Practice™ Case Studies. This informative program covers a wide range from product knowledge, elements of risk, return and optimization, control and forex risk management. In other words, learn everything you need to know about managing a Forex department so that profit can be optimized and loss can be recognized. Too many organisation make too much profit to be lost in Forex too quickly too. That is why you need to manage your Forex department actively.
OBJECTIVES AND BENEFITS IN ATTENDING
On completion of the Coaching Session participants will be able to:
• Understand and assess the risk and return of a Forex portfolio
• Determine the most attractive exposures from a risk/return perspective
• Determine the range and likelihood of future forex portfolio values; given this range and likelihood, determine how much equity or capital is required
• Identify the major sources of concentration and diversification in a Forex portfolio
• Assess strategies for improving performance of treasury portfolios
Day One - (PRODUCT KNOWLEDGE)
Is there a fundamental difference between Money Market & Foreign Exchange Market? What is a POSITION? Who controls the position in the bank? What is the best practice in the management of TREASURY LINES? How does Interest Rate Swaps and Currency Swaps work? Should your banks be involved in any of these? Case Studies and discussions.
Day Two (Forex AUDIT)
What is the correct audit approach? Why use the Systems based approach for forex audit? Where lies the auditor’s safety in a forex audit? What must be the FOREX audit focus?
DETAIL COACHING OUTLINE
• Data requirements and sources for active Forex management
• Default quantification for each obligor and utilization and recovery in the event of default; and an overview of the different sources for this data
• Understanding the distinction between MDDR line and FX line
• Components of Forex risk
• Methods of obtaining default probabilities
• Requirements for internal monitoring systems
• Determining quantum of loss given default in a Forex portfolio
• Criteria for which Forex position will be held in a portfolio or, alternatively, sold to other investors i.e. closing out
• An organization's required rate of return and its risk appetite
• Policy setting and implementation; investing guidelines, monitoring performance investment tactics, position control and management
• Quantification of Forex concentrations (Note: This program will describe and use the widely discussed CFE-In-Practice™ FOREX Case Studies)
METHODOLOGY
This coaching by a Certified Fraud Examiner consists of a lively series of short participative lectures conveyed using plain uncomplicated explanations. Learning will be facilitated through discussion and case studies. Ample coaching materials will be gi
The document outlines an agenda for a training on audit documentation, tools, and techniques for internal auditors. It includes introductory lectures, product and case study presentations, exercises, and breaks. It also discusses the internal auditor's role, the audit process, internal controls, documenting controls, risks, and system documentation methods like flowcharts and questionnaires.
This document outlines a risk-based audit coaching program led by Tommy Seah. The coaching will help participants understand risk identification, evaluation of internal controls, and audit techniques. It will cover the roles of internal auditors and compliance officers, the audit process, and components of internal control. The coaching uses interactive lectures, discussions, and case studies to facilitate learning. Tommy Seah is an experienced auditor and author who provides in-demand technical training to banks in Asia and Europe on topics like anti-money laundering, operational risk management, and Basel II.
TOMMY SEAH speaks on his perspective of FRAUD in CHINATommy Seah
1) The article discusses fraud that is occurring increasingly in China, especially as foreign companies establish supply chains and operations there. It provides three case studies of fraud that was uncovered.
2) The first case involved a country manager for a European machinery company who was embezzling money through shell companies and taking kickbacks from dealers. It took a detailed private investigation to uncover the full extent of his schemes.
3) The other two cases also involved employees who were diverting business for personal gain to companies they had ownership stakes in, as well as cronyism and embezzlement within a joint venture.
This document advertises a two-day workshop on practical techniques for combating corporate fraud. The workshop will provide hands-on training on conducting internal fraud investigations, detecting "red flags", applying forensic accounting skills, and structuring business processes to minimize fraud risk. It will be led by Tommy Seah, an experienced fraud examiner and author. The workshop outlines describe sessions on understanding why and how people commit fraud, approaches to fraud prevention, detection and investigation, and developing audit tests to uncover hard-to-spot fraud practices. The workshop aims to equip attendees with practical skills and knowledge for minimizing the risks and impacts of fraud.
Tommy Seah speaks on CORRUPTION and FRAUD PREVENTION in MalaysiaTommy Seah
The document discusses managing internal investigations and corruption. It covers the differences between internal audit and forensic audit approaches, as well as the skill set requirements for internal investigations. It also discusses how to build competencies for internal investigations, the costs of fraud to organizations, and how to apply investigative methodologies while avoiding legal issues.
The document provides information about CFE-In-Practice, a company that offers fraud examination and consulting services. It discusses CFE-In-Practice's mission and philosophy, which is to provide efficient and insightful financial training, consulting, and fraud prevention services using experienced professionals. The document also provides an overview of the services offered, including corporate fraud investigation, management consulting, training and professional coaching. It includes a profile of Tommy Seah, a Certified Fraud Examiner and leader at CFE-In-Practice.
Temple of Asclepius in Thrace. Excavation resultsKrassimira Luka
The temple and the sanctuary around were dedicated to Asklepios Zmidrenus. This name has been known since 1875 when an inscription dedicated to him was discovered in Rome. The inscription is dated in 227 AD and was left by soldiers originating from the city of Philippopolis (modern Plovdiv).
Level 3 NCEA - NZ: A Nation In the Making 1872 - 1900 SML.pptHenry Hollis
The History of NZ 1870-1900.
Making of a Nation.
From the NZ Wars to Liberals,
Richard Seddon, George Grey,
Social Laboratory, New Zealand,
Confiscations, Kotahitanga, Kingitanga, Parliament, Suffrage, Repudiation, Economic Change, Agriculture, Gold Mining, Timber, Flax, Sheep, Dairying,
This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
A wound is a break in the integrity of the skin or tissues, which may be associated with disruption of the structure and function.
Healing is the body’s response to injury in an attempt to restore normal structure and functions.
Healing can occur in two ways: Regeneration and Repair
There are 4 phases of wound healing: hemostasis, inflammation, proliferation, and remodeling. This document also describes the mechanism of wound healing. Factors that affect healing include infection, uncontrolled diabetes, poor nutrition, age, anemia, the presence of foreign bodies, etc.
Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.
A Free 200-Page eBook ~ Brain and Mind Exercise.pptxOH TEIK BIN
(A Free eBook comprising 3 Sets of Presentation of a selection of Puzzles, Brain Teasers and Thinking Problems to exercise both the mind and the Right and Left Brain. To help keep the mind and brain fit and healthy. Good for both the young and old alike.
Answers are given for all the puzzles and problems.)
With Metta,
Bro. Oh Teik Bin 🙏🤓🤔🥰
How to Download & Install Module From the Odoo App Store in Odoo 17Celine George
Custom modules offer the flexibility to extend Odoo's capabilities, address unique requirements, and optimize workflows to align seamlessly with your organization's processes. By leveraging custom modules, businesses can unlock greater efficiency, productivity, and innovation, empowering them to stay competitive in today's dynamic market landscape. In this tutorial, we'll guide you step by step on how to easily download and install modules from the Odoo App Store.
Andreas Schleicher presents PISA 2022 Volume III - Creative Thinking - 18 Jun...EduSkills OECD
Andreas Schleicher, Director of Education and Skills at the OECD presents at the launch of PISA 2022 Volume III - Creative Minds, Creative Schools on 18 June 2024.
Andreas Schleicher presents PISA 2022 Volume III - Creative Thinking - 18 Jun...
Fraud Risk Management - Road Show in KL, Malaysia
1. 3/19/2009
ACFE Regent Emeritus
Tommy Seah
presents
Fraud Risk Management
A Paradigm Shift
2009
1
“………….. financial institutions
must have in place, all the
necessary measures to deter or
prevent fraud and constantly
review all its controls and
measures and also have in place
a f d management function t
fraud tf ti to
prevent loopholes that fraudsters
can exploit.” …… who said that ?
2
march 05, 2009 at Shangri-La
hotel and the guest of honour
was Ms Teo Swee Lian, Deputy
Managing Di t MAS
M i Director, MAS.
3
1
2. 3/19/2009
Why is Internal Control Important?
Financial Reporting
• Promotes integrity of data
used in making business
decisions
• Assists in fraud prevention
and detection through the
creation of an auditable trail of
evidence
Operations
Promotes efficiency and
effectiveness of operations
through standardized Laws and Regulations
processes
Ensures the safeguarding of • Helps maintain compliance
assets through control with laws and regulations
through periodic monitoring
activities
4
Limitations of Internal Control
Errors may arise from
misunderstandings of instructions,
mistakes of judgment, fatigue, etc.
Controls that depend on the
segregation of duties may be
circumvented by collusion
Management may override the
structure
Compliance may deteriorate over
time
The Existing model
Financial
Control
The Fraud Examiner The Certified
System Investigator
CFE
CSI
Compliance The Risk
Management
CPA,LLB, CSI Trinity
CPA,CFA CSI
of
Controls
Internal Audit
CPA(CIA) CSI,
CISA
6
2
3. 3/19/2009
The Spectrum of Risk
www.cfe-in-practice.net
Liquidity Risk
B
A C
Operational Credit Risk
Risk
What is Risk ?
D
E
Reputational Market Risk
Risk
7
www.cfe-in-practice.net
“External”
Audit
Internal audit
(COSO + COBIT+ ISO…
Forensic audit
Investigative auditing
(Specific, Post event)
( suspicious, unusual activities, allegations)
Eg. NKF, CAO
E.g.. Money Laundering penetration Test
8
Fraud Control Principle
F dC t lP i i l
3
4. 3/19/2009
If an organisation accepts that it
is exposed to fraud – and no
organisation is immune to fraud –
the next step is to
apportion responsibility for fraud
risk management.
Copyright (c)2006 www.cfe-in-practice.net 10
The Paradigm Shift
Financial
Control
The Fraud Examiner The Certified
The CPA
System Investigator
CFE
CSI
Risk
Compliance Management
CPA,LLB, CSI CPA,CFA CSI
S.T.A.R
Strategic Tracking
and Resolution
Investigation FRM Unit
Internal Audit
Unit
CPA(CIA) CSI,
CISA
11
WHY is there a need for the paradigm shift ?
Historically, the management of fraud risk
does not lie with any one
particular department or practitioner.
Copyright (c)2006 www.cfe-in-practice.net 12
4
5. 3/19/2009
It can be handled internally or be
outsourced,
and how it is handled is affected by
many variables such as organizational
size, industry sector, geographical
location, cultural dynamics - and
management
perception of the problem.
Copyright (c)2006 www.cfe-in-practice.net 13
Regardless of these
variables, any fraud
prevention and control
model should aim to
achieve one, or all, of
the five
primary objectives:
Copyright (c)2006 www.cfe-in-practice.net 14
The five
primary objectives:
_ Prevention
_ Deterrence
_ Disruption –
_ Identification
_ Civil action/criminal prosecution
Copyright (c)2006 www.cfe-in-practice.net 15
5
6. 3/19/2009
The Fraud Triangle.
Fraud Risk Fraud Risk
Management Management
Perceived Opportunity
Auditor’s Domain
Who Commits Fraud?
What type of individual commits FRAUD?
It is not limited to any one type of person.
www.cfe-in-practice.org
Married
Active religious
members
Children
Good education
First-time offenders
Good employees
Don’t abuse alcohol
6
7. 3/19/2009
Optimistic
High self-esteem
Achieving
Family harmony
Socially conforming
Self control
Kind
Sympathetic
Conclusion: Fraud Perpetrators Look Exactly Like Us!
Who Commits Fraud?
While people who commit rape, murder, bank robbery and other
property offenses have distinguishing characteristics, fraud
perpetrators look more like more citizens than criminals!
Bank Robbers
Normal Citizens Fraud Perpetrators
Sample
Sample
S l Sample
S l
Major Differences
No Significant Differences
The “Red Flags” of fraud
www.cfe-in-practice.net
Given the “right
circumstances”,
circumstances”, Alcohol
Gambling
almost
everyone can
rationalize that it
is OK to
Profile of A Person
commit fraud..Text
Who Commits
Fraud
Drugs
Sex
21
7
8. 3/19/2009
1
STEP 1: EVALUATE THE ORGANIZATION'S FRAUD RISK FACTORS
To identify which factors increase the risk for fraud within
an organization, examiners should analyze industry and
business operations hold discussions with management
operations, management,
review previous frauds committed against or on behalf of
the company, review company performance, and evaluate
similar frauds that occurred at competitors' organizations.
7
STEP 2: IDENTIFY POSSIBLE FRAUD SCHEMES
The ability to identify specific schemes resulting from fraud
risk factors depends on the examiner's knowledge of this
area. F d specialists, i l di
Fraud i li including i di id l with certified
individuals i h ifi d
fraud examiner (CFE) designations and Certified Systems
Investigator (CSI) are ideal for this step of the process, as
they possess specialized knowledge of fraud detection and
investigation.
8
8
9. 3/19/2009
STEP 3: PRIORITIZE IDENTIFIED FRAUD RISKS
Fraud is not just an ordinary risk, but also an inherent and
significant one. Once the fraud schemes database is
populated, management and internal auditing should
identify the frauds that pose the greatest risk for the
organization.
9
Examiners should consider the following factors when
prioritizing fraud risks:
Financial impact to the organization.
Reputation risk of negative publicity associated with fraud.
Loss of productivity.
Potential criminal/civil actions taken against the
organization. (Such as Data Breach EU95/46 on PII)
Loss of company assets.
11
STEP 4: EVALUATE MITIGATING CONTROLS
Internal s Auditors with CFE qualifications are well-
positioned to review and counsel on the existence
and operational effectiveness of internal controls. In
p
step four, the examiner/auditor should evaluate the
high-priority frauds and determine if the necessary
controls are in place to reduce the risk of
occurrence. This step takes time, as the auditor
should attempt to identify more than one control for
each fraud scheme.
12
9
10. 3/19/2009
www.cfe-in-practice.net
Determination by Determination by
Area Scheme
28
Fraud Consideration at all stages of engagement
Perform Pre-Engagement
PROFESSIONAL SKEPTICISIM
Activities
GATHER AN ASEESS
MENTATION
FRAUD RISKS
Perform Preliminary Planning
ND
DOCUM
Develop Audit Plan
Perform Audit Plan
Conclude & Report
Fraud Risk Factors
&
Risk of Fraud
10