The document discusses fraud risk and financial statement fraud. It defines fraud as an illegal act involving deceit, concealment, or violation of trust to obtain money or services. Financial statement fraud involves intentional misstatements or omissions of material facts that mislead readers and could change judgments. The roles of management, internal auditors, and fraud examiners in preventing, detecting, and investigating fraud are also described. Becoming a Certified Fraud Examiner requires passing a comprehensive exam covering fraud prevention, financial transactions, investigations, and legal elements of fraud.
Threads Of money Laundering. I am Introducing a very big Issue, a big problem of our Country. I have written many ways to be out of the situation. So guys If you have chosen this topic be careful and Hit like and Download my PPT.
Threads Of money Laundering. I am Introducing a very big Issue, a big problem of our Country. I have written many ways to be out of the situation. So guys If you have chosen this topic be careful and Hit like and Download my PPT.
Presentation on Financial Crimes. Money is one of the most important reasons behind all forms of crime whether Cyber or Internet crimes, Physical or Theft crimes. With the advancement of technology the crime has not decelerated but only esteemed and many more new techniques were by people and they were popularly called as Blackhat hackers. In this presentations we give an over view of the whole scenario.
money laundering and corruption
,
what is money laundering
,
suspicious transaction means such transaction:
,
what are some of the challenges
,
why and how to combat money laundering
,
money laundering
,
money laundering process
,
mlpa-2012
,
incentives to launder
Presentation on Financial Crimes. Money is one of the most important reasons behind all forms of crime whether Cyber or Internet crimes, Physical or Theft crimes. With the advancement of technology the crime has not decelerated but only esteemed and many more new techniques were by people and they were popularly called as Blackhat hackers. In this presentations we give an over view of the whole scenario.
money laundering and corruption
,
what is money laundering
,
suspicious transaction means such transaction:
,
what are some of the challenges
,
why and how to combat money laundering
,
money laundering
,
money laundering process
,
mlpa-2012
,
incentives to launder
The Auditors Responsibilities Relating to Fraud in an Audit of Financial Stat...Dr. Soheli Ghose Banerjee
This presentation is an overview of SA 240 (R). Prepared with Prof. S. Sircar.
Dr. Soheli Ghose ( Ph.D (University of Calcutta), M.Phil, M.Com, M.B.A., NET (JRF), B. Ed).
Assistant Professor, Department of Commerce,St. Xavier's College, Kolkata.
Guest Faculty, M.B.A. Finance, University of Calcutta, Kolkata
Financial Statement Fraud training by Tommy SEAHTommy Seah
Every company maneuvers the numbers to a certain extent to achieve budgets
and get bonuses. This is nothing new. But sometimes, companies take the factfudging
too far. Factors such as greed, desperation, immorality and bad judgment
drive some executives to commit financial statement fraud.
As evidenced by the catastrophic collapse of numerous corporations over the
past few years, financial statement fraud is a serious threat to any business’ economic
well-being. The existence and persistence of financial statement fraud is by
far the most expensive in terms of both absolute dollars and long term damage.
Recognising the challenges that organisations are facing in combating Financial
Statement Fraud, ProEdge Global is pleased to present this 2-day Workshop on
Financial Statement Fraud. This will serve as an excellent opportunity to learn how
best to protect your organization and step up on controls to prevent fraud.
This program offers a broad overview of the different types of financial & accounting
fraud while focusing on Financial Statement Fraud. Lead by a world renowned
financial fraud specialist, this workshop will examine the theories and practical
techniques and measures to combat Financial Statement Fraud and other financial
fraud. Thus, preventing organisations from becoming the next fraud victim.
COLLEGE OF BANKING AND FINANCIAL STUDIESDEPARTMENT OF UNDERGWilheminaRossi174
COLLEGE OF BANKING AND FINANCIAL STUDIES
DEPARTMENT OF UNDERGRADUATE PROGRAMME
B.Sc. in Accounting, Auditing and Finance
Student Name & ST Number
Dunya Hamood Albreiki (ST09019)
Semester
8
September – December 2021Assignment Title
Practical implication in adherence to the Code of Ethics and identification of fraud risk factors.
Module
UG 034 – Ethics and Conduct of Accounting Profession
Assessor:
Ms. Nandini Balaji/ Ms. Mariam Hassen
Internal Verifier
Mr. Mohammed Farzan
Table of content
Contents
Introduction 2
Part A 3
Using Professional skepticism 3
Fraud risk factors 5
Part B 6
Violations to ethical principles, and the nature of threats it poses 6
Recommendations 9
Conclusion 10
Reference List 11
Introduction
The accountancy profession places a high priority on auditors' independence as the core standard of morality. It is imperative that accountants avoid conflicting interests and other problematic business links when providing financial solutions. An accountant's competence to give an unbiased assessment of an organization's financial data may be harmed if they fail to maintain their objectivity and independence. It is crucial for auditors to be objective and independent in their work. Public accounting companies and personal certified public accountants (CPAs) are typically limited services they may provide to their customers. General financial reporting, audits, taxes, and management consultancy services are all included in auditing. They may lose their neutrality and independence if they execute more than one service for the same customer (Ariail, Smith and Smith 2020). When a person audits their own work, they are basically re-checking their own work. An accountant may be able to conceal a company's unfavorable financial facts in this case. We'll look at how the Code of Ethics is used in real life, as well as how fraud risk indicators are identified in the context of the Omancell case.
Part A Comment by Nandini Balaji: Dear the reqiurement for part a has not been met. Youhave suggested risk factors and have tried to connect to the scenario. However you are supposed to identify the risk factors from the scenario, explain why they are risk factors. Recommending to reconsider your answer. There is scope for identification of additional risk factorsUsing Professional skepticism
Professional skepticism is suitable to be applicable by Mr. Omar, the financial controller of Omancell for the year ending December 31, 2021, at different phases of the strategic audit planning, and some such instances are provided below: Comment by Nandini Balaji: Recommending to first explain what is professional skepticism and its importance
While Mr. Omar is examining Omancell's trustworthiness, he should also take into account any issues that may affect the consultant's ability to operate with professional judgment, including ethical risks to impartiality, before accepting the partnership. It is important that Mr. Omar exercise ...
“Nearly half of all victim organizations do not recover any losses that they suffer due to fraud” according to the 2012 Report to the Nations presented by the Association of Certified Fraud Examiners. Although, there are no statistics that report the total number of entities and the amount defrauded, regardless of size, any organization can become a victim of fraud. Kyle Anne Midkiff’s white paper, Act Now Before it’s Too Late, provides five important steps to help organizations of any size prevent fraud.
The initial stage of the supply chain process is the planning stage. We need to develop a plan or strategy in order to address how the products and services will satisfy the demands and necessities of the customers. In this stage, the planning should mainly focus on designing a strategy that yields maximum profit.
For managing all the resources required for designing products and providing services, a strategy has to be designed by the companies. Supply chain management mainly focuses on planning and developing a set of metrics.
1.4.2) Develop (Source)
After planning, the next step involves developing or sourcing. In this stage, we mainly concentrate on building a strong relationship with Develop of the raw materials required for
production. This involves not only identifying dependable suppliers but also determining different planning methods for shipping, delivery, and payment of the product.
Companies need to select suppliers to deliver the items and services they require to develop their product. So, in this stage, the supply chain managers need to construct a set of pricing, delivery and payment processes with suppliers and also create the metrics for controlling and improving the relationships.
Finally, the supply chain managers can combine all these processes for handling their goods and services inventory. This handling comprises receiving and examining shipments, transferring them to the manufacturing facilities and authorizing supplier payments.
1.4.3) Make
The third step in the supply chain management process is the manufacturing or making of products that were demanded by the customer. In this stage, the products are designed, produced, tested, packaged, and synchronized for delivery.
Here, the task of the supply chain manager is to schedule all the activities required for manufacturing, testing, packaging and preparation for delivery. This stage is considered as the most metric-intensive unit of the supply chain, where firms can e gauge the quality levels, production output and worker productivity.
Fraud Risk Assessment: An Expert’s BlueprintFraudBusters
Webinar series from FraudResourceNet LLC on Preventing and Detecting Fraud in a High Crime Climate. Recordings of these Webinars are available for purchase from our Website fraudresourcenet.com
This Webinar focused on the subject in the title
FraudResourceNet (FRN) is the only searchable portal of practical, expert fraud prevention, detection and audit information on the Web.
FRN combines the high quality, authoritative anti-fraud and audit content from the leading providers, AuditNet ® LLC and White-Collar Crime 101 LLC/FraudAware.
The ever increasing regulations and expansion of organisations across the globe into new markets exposed the organisations to greater regulatory and compliance risks. To Know More : https://www2.deloitte.com/in/en/pages/audit/articles/internal-audit.html
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.
Mr. Ali AlMuwaijei, Board Member of the UAE IAA, delivered the opening remarks with presentation titled "Why auditors DO NOT discover Fraud" where he discussed the fraud triangle and the role of internal auditors in looking for the red flags and provided many statistical data about the fraud globally,
More from Iyad Mourtada, CMA, CIA, CFE, CCSA, CRMA, CPLP (20)
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RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
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Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
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This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
4. LOGO
The 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. LOGO
Association of Certified Fraud Examiners
"The use of one's occupation for personal
enrichment through the deliberate misuse or
misapplication of the employing organization's
resources or assets.”
6. LOGO
Legal Elements of Fraud
1. A material false statement
2. Knowledge that the statement was false when
it was spoken
3. Reliance on the false statement by the victim
4. Damages resulting from the victim’s reliance
on the false statement
7. LOGO
Major Categories of Fraud
- Asset misappropriations
Skimming revenues, stealing inventory, and payroll fraud.
- Corruption
Accepting kickbacks and engaging in conflicts of interest.
- Financial statement fraud and other
fraudulent statements
Overstating revenues, understating liabilities or expenses, or
making false promises regarding the safety and prospects of
an investment.
9. LOGO
Financial Statement Fraud
The 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. LOGO
Financial Statement Fraud
Major Areas:
1. Fictitious revenue (and related assets)
2. Improper timing of revenue and expense recognition
3. Concealed liabilities
4. Inadequate and misleading disclosures
5. Improper asset valuation
6. Improper and inappropriate capitalization of expenses
11. LOGO
Financial Statement Fraud
The essential characteristics:
(1) The misstatement is material and intentional.
(2) Users of the financial statements have been misled.
12. LOGO
Management's Role
Managing Fraud Risk:
Establishing a Fraud-related policy and procedures.
Assessing Fraud Risk Assessment
Establishing Preventive Techniques
Establishing Detective Techniques
Establishing a Reporting Process
13. LOGO
Internal Auditor's 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. LOGO
Internal Auditor's 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. LOGO
Internal Auditor's 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. LOGO
Fraud Examination
Fraud examination is a methodology developed by
ACFE for resolving fraud allegations from inception
to disposition, including obtaining evidence,
interviewing, writing reports, testifying to findings,
and assisting in the detection and prevention of
fraud.
17. LOGO
Fraud Examiner
Lawyer Accountant
Criminologist Investigator
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 Exam
4. Pass the CFE Exam.
5. Gain final approval from the certification committee and
become a CFE.
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. LOGO
Certified Fraud Examiner (CFE)
• Fraud Prevention and Deterrence
• Financial Transactions
• Fraud Investigation
• Legal Elements of Fraud
24. LOGO
Certified Fraud Examiner (CFE)
Get Certified
Who don’t like to watch CSI or play Clue game. In case you haven’t play this game before. The idea of it is collecting many clues about who did the crime, where the crime was done and by which instrument. All of us love to be an investigator from time to time. But as internal auditor, it is really important to understand that our role is to ensure that the internal controls are effective to prevent and detect fraud. And in case we see indictors for fraud, our responsibility is to report our finding to the appropriate authority within the organization. We should not conduct fraud examination or investigation unless we are authorized to do so.
In the recent years, we can see that the highest risk that organization has was Fraud risk. Look at Enron, Worldcom, Tycon, All of them collaped because of internal fraud. As such, we as internal auditors much pay more attention to the possibility of fraud within our organization and make sure that the organization has effective fraud risk assessment and controls. Fraud Risk: The probability that fraud will occur and the potential severity or consequences to the organization when it occurs.
Let’s start by defining the work Fraud. As you can see this a broad definition of fraud. But it is clear that any illegal act that allow you to gain personally is a kind of fraud.
Now that we know the definition of fraud, It is important to understand the legal elements that need to exist to proof the case of fraud.Altering accounting records, falsify a statementThey do it and they know it is wrong (Intentional)Someone use this statement to make decision Damages happened as result of this Provided that the investigator has evidence that the alleged perpetrator committed the act, benefited from that act, and concealed his or her activities,
Asset misappropriations involve the theft or misuse of an organization’s assets. (Common examples include skimming revenues, stealing inventory, and payroll fraud.)Corruption entails the unlawful or wrongful misuse of influence in a business transaction to procure personal benefit, contrary to an individual’s duty to his or her employer or the rights of another. (Common examples include accepting kickbacks and engaging in conflicts of interest.)Financial statement fraud and other fraudulent statements involve the intentional misrepresentation of financial or nonfinancial information to mislead others who are relying on it to make economic decisions. (Common examples include overstating revenues, understating liabilities or expenses, or making false promises regarding the safety and prospects of an investment.)
Why Does Fraud Occur?Opportunity: Poor or week controls can create an Opportunity for breaking the rule or taking advantage of the system (NO controls over the Purchasing Department)Motive (Incentive Pressure) Greed, Stress, Power (Show off), addition, ProblemRationalization Make sense of their fraud act and justify it (They deserve, They are entitled, They are just borrowing the money)Internal Auditors should examine the internal control to make sure that they don't provide opportunity for fraud
Asset misappropriations involve the theft or misuse of an organization’s assets. (Common examples include skimming revenues, stealing inventory, and payroll fraud.)Corruption entails the unlawful or wrongful misuse of influence in a business transaction to procure personal benefit, contrary to an individual’s duty to his or her employer or the rights of another. (Common examples include accepting kickbacks and engaging in conflicts of interest.)Financial statement fraud and other fraudulent statements involve the intentional misrepresentation of financial or nonfinancial information to mislead others who are relying on it to make economic decisions. (Common examples include overstating revenues, understating liabilities or expenses, or making false promises regarding the safety and prospects of an investment.)
Fraud Risk Assessment based on ERM:Understand potential fraud in the organization based on the operation and internal controlsEvaluate the controls to prevent or reduce fraud risks based on costs and benefitsFraud Detection:Management's Role is to establish and maintain an effective control system(Hotline, whistleblower protection)
- Internal Auditor should have sufficient Knowledge to identify the indicators of fraud Fraud Prevention:Internal Auditors will evaluate the adequacy and effectiveness of internal controls, and fraud risk management of the organization It is not the responsibiltiy of Internal Auditor to do Fraud Examination.
Join your local chapter:UAE Chapter
$300 to take the exam Academic Requirements: Minimum of a Bachelor's degree Professional Requirements: at least two years of professional experience in a field either directly or indirectly related to the detection or deterrence of fraud.3. Prepare for the CFE:- Study with the CFE Exam Prep Course. Attend the CFE Exam Review Course Study on your own
Fraud Prevention and Deterrence — tests your understanding of why people commit fraud and ways to prevent it. Topics covered in this section include crime causation, white-collar crime, occupational fraud, fraud prevention, fraud risk assessment, and the ACFE Code of Professional Ethics. Financial Transactions — tests your comprehension of the types of fraudulent financial transactions incurred in accounting records. To pass Financial Transactions, you will be required to demonstrate knowledge of the following concepts: basic accounting and auditing theory, fraud schemes, internal controls to deter fraud and other auditing and accounting matters. Fraud Investigation — includes questions about interviewing, taking statements, obtaining information from public records, tracing illicit transactions, evaluating deception and report writing. Legal Elements of Fraud — ensures your familiarity with the many legal ramifications of conducting fraud examinations, including criminal and civil law, rules of evidence, rights of the accused and accuser and expert witness matters.
Fraud Prevention and Deterrence — tests your understanding of why people commit fraud and ways to prevent it. Topics covered in this section include crime causation, white-collar crime, occupational fraud, fraud prevention, fraud risk assessment, and the ACFE Code of Professional Ethics. Financial Transactions — tests your comprehension of the types of fraudulent financial transactions incurred in accounting records. To pass Financial Transactions, you will be required to demonstrate knowledge of the following concepts: basic accounting and auditing theory, fraud schemes, internal controls to deter fraud and other auditing and accounting matters. Fraud Investigation — includes questions about interviewing, taking statements, obtaining information from public records, tracing illicit transactions, evaluating deception and report writing. Legal Elements of Fraud — ensures your familiarity with the many legal ramifications of conducting fraud examinations, including criminal and civil law, rules of evidence, rights of the accused and accuser and expert witness matters.