Auditing for fraud can be very challenging. It has the aura of detective work – finding things people want to keep hidden. However, auditing and fraud examination are not easy. They should only be pursued by persons who have proper training and experience. Thus, fraud awareness for independent auditors and internal auditors is the focus of this PRESENTATION
This document discusses fraud in the Indian banking sector. It begins with an introduction that defines fraud and its rising occurrence in banking. It then reviews literature on previous studies of fraud's nature, causes, effects and management. Several sections provide statistics on banking fraud cases in India from 2009-2013, classify different types of fraud, and identify institutional and environmental factors that cause fraud. The effects of fraud on banks are erosion of confidence, reduced profits and depletion of capital. Fraud management techniques discussed include the classical fraud motivation model, a proactive right sourcing model, and other techniques like ethics training and data mining. Current approaches to fraud management are also categorized.
The document provides an overview of fraud awareness and prevention. It discusses common fraud schemes like financial statement fraud, assets misappropriation, and corruption. It also outlines red flags for detecting occupational fraud, how fraud is committed, and profiles of typical fraud perpetrators. The document emphasizes the importance of strong antifraud controls, training programs, and fostering an ethical organizational culture to help prevent and detect fraud.
The document discusses audit evidence, which is information used by an auditor to arrive at conclusions to support the audit opinion. It should be sufficient and appropriate. Sufficiency refers to quantity and appropriateness to quality and relevance. The auditor considers inherent risk, control risk, materiality, and other factors to judge sufficient and appropriate evidence. Evidence comes from tests of controls, substantive procedures, and inquiries. It is used to evaluate financial statement assertions like existence, completeness, and valuation of assets and liabilities.
This document discusses financial statement fraud schemes. It begins by defining financial statements and fraud. It then discusses the objectives, perpetrators, reasons, and schemes used for financial statement fraud, including time manipulations and improper revenue/expense recognition. Red flags for financial statement fraud are listed, such as single person dominion and ineffective communication. Detection and prevention methods are outlined, like having an effective whistleblower program and questioning extraordinary transactions. The Beneish model for detecting financial statement fraud using eight financial ratios is also introduced.
This document discusses fraud risk and prevention. It begins with defining fraud and identifying common fraud schemes such as asset misappropriation, corruption, and financial statement fraud. Examples of each scheme are provided. The document also discusses elements that contribute to fraud occurrence, like opportunity and incentives. Effective fraud prevention controls are then outlined, including segregating duties, competitive bidding processes, and fraud hotlines. The importance of fraud risk assessments and creating an organizational culture of integrity are also emphasized.
Fraud can take many forms but generally involves deception for financial or personal gain. There are three main types of fraud: corruption, asset misappropriation, and financial statement fraud. Fraud is most often committed due to pressure, opportunity, and the ability to rationalize one's actions. Companies can help prevent fraud by breaking this fraud triangle through strong internal controls, monitoring, and creating a culture of integrity and accountability.
The document discusses internal check, internal audit, and internal control. It defines each term and describes their objectives and characteristics. Internal check refers to built-in checks in accounting processes to segregate duties among employees. Internal audit involves continuous review of operations and records by a dedicated staff. Internal control comprises plans and methods to safeguard assets and ensure efficient management. The document outlines the scope, advantages, limitations of each system and how they help management and auditors.
An audit programme outlines the guidelines and specifics for conducting an audit, including the audit objectives, location, timing, and procedures. It is developed after understanding the client's business by determining audit strategies and preparing a checklist. The advantages of an audit programme are that it provides instructions, divides work responsibilities, and facilitates supervision, future planning, and efficient audits. However, audit programmes can also lead to rigid and mechanical work, as well as a lack of flexibility and initiative.
This document discusses fraud in the Indian banking sector. It begins with an introduction that defines fraud and its rising occurrence in banking. It then reviews literature on previous studies of fraud's nature, causes, effects and management. Several sections provide statistics on banking fraud cases in India from 2009-2013, classify different types of fraud, and identify institutional and environmental factors that cause fraud. The effects of fraud on banks are erosion of confidence, reduced profits and depletion of capital. Fraud management techniques discussed include the classical fraud motivation model, a proactive right sourcing model, and other techniques like ethics training and data mining. Current approaches to fraud management are also categorized.
The document provides an overview of fraud awareness and prevention. It discusses common fraud schemes like financial statement fraud, assets misappropriation, and corruption. It also outlines red flags for detecting occupational fraud, how fraud is committed, and profiles of typical fraud perpetrators. The document emphasizes the importance of strong antifraud controls, training programs, and fostering an ethical organizational culture to help prevent and detect fraud.
The document discusses audit evidence, which is information used by an auditor to arrive at conclusions to support the audit opinion. It should be sufficient and appropriate. Sufficiency refers to quantity and appropriateness to quality and relevance. The auditor considers inherent risk, control risk, materiality, and other factors to judge sufficient and appropriate evidence. Evidence comes from tests of controls, substantive procedures, and inquiries. It is used to evaluate financial statement assertions like existence, completeness, and valuation of assets and liabilities.
This document discusses financial statement fraud schemes. It begins by defining financial statements and fraud. It then discusses the objectives, perpetrators, reasons, and schemes used for financial statement fraud, including time manipulations and improper revenue/expense recognition. Red flags for financial statement fraud are listed, such as single person dominion and ineffective communication. Detection and prevention methods are outlined, like having an effective whistleblower program and questioning extraordinary transactions. The Beneish model for detecting financial statement fraud using eight financial ratios is also introduced.
This document discusses fraud risk and prevention. It begins with defining fraud and identifying common fraud schemes such as asset misappropriation, corruption, and financial statement fraud. Examples of each scheme are provided. The document also discusses elements that contribute to fraud occurrence, like opportunity and incentives. Effective fraud prevention controls are then outlined, including segregating duties, competitive bidding processes, and fraud hotlines. The importance of fraud risk assessments and creating an organizational culture of integrity are also emphasized.
Fraud can take many forms but generally involves deception for financial or personal gain. There are three main types of fraud: corruption, asset misappropriation, and financial statement fraud. Fraud is most often committed due to pressure, opportunity, and the ability to rationalize one's actions. Companies can help prevent fraud by breaking this fraud triangle through strong internal controls, monitoring, and creating a culture of integrity and accountability.
The document discusses internal check, internal audit, and internal control. It defines each term and describes their objectives and characteristics. Internal check refers to built-in checks in accounting processes to segregate duties among employees. Internal audit involves continuous review of operations and records by a dedicated staff. Internal control comprises plans and methods to safeguard assets and ensure efficient management. The document outlines the scope, advantages, limitations of each system and how they help management and auditors.
An audit programme outlines the guidelines and specifics for conducting an audit, including the audit objectives, location, timing, and procedures. It is developed after understanding the client's business by determining audit strategies and preparing a checklist. The advantages of an audit programme are that it provides instructions, divides work responsibilities, and facilitates supervision, future planning, and efficient audits. However, audit programmes can also lead to rigid and mechanical work, as well as a lack of flexibility and initiative.
PRESENTATION ON FINANCIAL STATEMENT FRAUDSRATAN AGARWALA
This document discusses financial statement fraud schemes. It defines financial statements and fraud, then outlines various schemes used to commit financial statement fraud such as time manipulations, early recognition of revenues, and postponing expenses. It also discusses perpetrators of fraud, reasons for fraud, and red flags that could indicate fraud. Methods for detecting and preventing financial statement fraud include analyzing unusual patterns in accounts receivables, cash flows, and asset/liability balances. The Beneish model is presented as a tool for detecting fraud using eight financial ratios.
The document discusses the audit risk model, which states that audit risk (AR) is equal to inherent risk (IR) multiplied by control risk (CR) multiplied by detection risk (DR). It defines each component of the model. It also discusses how the different risk components are assessed and interrelated, how internal controls objectives are designed to prevent and detect misstatements, and the importance of risk assessment in an organization's internal controls.
This document discusses audit sampling, including defining audit sampling and distinguishing between sampling and non-sampling risk. It explains the steps in planning and selecting a sample, describing statistical and non-statistical sampling methods. Random, systematic, and haphazard sample selection techniques are covered. Factors that influence sample size are addressed for both tests of controls and substantive procedures.
The document discusses the nature and purpose of auditing. It defines auditing as the verification of accounting and financial records to determine accuracy and reliability. The primary objective of an audit is to express an expert opinion on whether the financial statements present a true and fair view. Secondary objectives are to detect and prevent errors and fraud. Specific objectives include verifying accounts and records and reporting on the profit/loss and financial position. The document also differentiates between auditing and accounting in terms of scope, objective, status, qualifications, time period of work, tenure, and accountability.
This chapter provides an overview of auditing. It covers topics like generally accepted auditing standards, competence and independence of auditors, audit planning and supervision, audit evidence, gathering evidence through inspection, observation, inquiry and other procedures. It discusses auditing in depth by examining the system and tracing transactions. It also covers test checks, related precautions, factors determining sample size, and compliance with accounting standards and enactments. Finally, it lists various accounting and auditing statements, guidance and standards.
The document discusses audit evidence and related concepts:
1. Audit evidence is information used by auditors to arrive at conclusions and includes accounting records and other corroborating evidence. Auditors must obtain sufficient and appropriate audit evidence through audit procedures.
2. Sufficient evidence is a measure of quantity based on risk, materiality, knowledge. Appropriate evidence is relevant and reliable based on source, documentation, and objectivity.
3. Audit procedures include inquiry, observation, inspection, confirmation, recalculation, and analytical procedures to obtain evidence for assertions about transactions, account balances, and disclosures.
Fraud in the banking sector is a major concern. The document discusses the types, causes, and extent of fraud based on RBI data. It notes that technology-related frauds make up 65% of cases reported by banks. KYC-related and advances-related fraud are also issues. Nationalized banks account for the largest share (83%) of the total fraud amount. Common fraud types include account opening, cheque, loan, and money laundering. The RBI has issued guidelines to banks on preventing fraud and reporting fraud cases over certain amounts.
The document discusses techniques for verifying assets and liabilities during an audit. It outlines six key techniques: 1) verifying physical existence, 2) assessing correct valuation, 3) confirming ownership, 4) ensuring proper disclosure, 5) identifying any charges on assets, and 6) checking for proper authorization of transactions. Specific procedures are described for different asset types, including obtaining certificates from management and third parties. The auditor must also consider events after the balance sheet date and obtain a management representation letter.
1. Auditing originated in the 18th century with the rise of large-scale industries and businesses, which led to more complex accounting practices.
2. Auditing involves the systematic and independent examination of a company's financial records and documents to verify that the financial statements accurately reflect the company's transactions and financial position.
3. Auditing provides benefits such as detecting errors and fraud, protecting shareholder interests, checking directors and management, and giving an independent opinion on the business's financial health. However, auditors also face limitations like not detecting every fraud and having to rely on information from company personnel.
The document discusses audit evidence and procedures for gathering evidence. It defines audit evidence and its basic principles of independence, integrity, and objectivity. It describes the sources of audit evidence, including physical examination, confirmations, documentation, analytical procedures, inquiries, reperformance, and observation. It discusses factors like audit risk, reliance on controls, materiality, and reliability that influence evidence. It also covers the appropriateness, relevance, reliability, and direction of testing for audit evidence. Finally, it discusses substantive procedures used to detect material misstatements.
CPAs responsibilities to detect fraud in audits, required approaches, types of financial statement frauds and specific case examples of different types of financial statement fraud
This document provides an overview of audit planning topics including:
- The importance of audit planning to obtain sufficient evidence and keep costs reasonable.
- Key planning activities like understanding the client's business, assessing risks, and developing responses.
- How inherent, control, and detection risks contribute to overall audit risk.
- The use of analytical procedures during planning, fieldwork, and completion to identify unusual fluctuations.
- The three phases of audit work: planning, interim, and final, and how they relate to risk assessment and evidence gathering.
The document discusses internal controls in auditing, including the objectives, components, and case studies related to internal controls. It describes the control environment, risk assessment, control activities, information and communication, and monitoring as the main components of internal controls. The document also differentiates between substantive tests and tests of controls in auditing.
This document discusses the process of vouching in auditing. It defines vouching as verifying the authenticity and authority of transactions recorded in accounting books by comparing them to supporting documentation. The key types of vouchers and objectives of vouching are ensuring transactions are correctly recorded, supported by evidence, and properly authorized. Vouching is an important audit procedure for examining transactions in cash books, subsidiary books, journals, and ledgers.
Auditing involves independently examining financial statements to provide an opinion. An auditor must follow general principles including maintaining objectivity and skepticism. Key responsibilities involve planning the audit, obtaining sufficient evidence, and documenting the work. Audits have inherent limitations as they are based on samples rather than 100% verification. If fraud or non-compliance with laws is identified, the auditor communicates with management and those charged with governance. Joint auditors divide the work but are jointly responsible for undivided areas.
The document discusses the role and importance of auditors in evaluating financial information. It describes how the Enron scandal illustrated the responsibility of auditors to users of financial statements. In response, Congress passed the Sarbanes-Oxley Act, which established oversight of auditors and required reporting on internal controls. The document then defines auditing as the accumulation and evaluation of evidence to determine if information corresponds to established criteria, and notes it should be done by competent and independent persons.
The document outlines 9 basic principles that govern an audit:
1. Integrity, objectivity and independence are required of auditors. Auditors must maintain impartiality and protect confidential client information.
2. Auditors must have the proper skills and competence to perform audits and keep their expertise up to date.
3. Auditors are responsible for properly supervising any work delegated to assistants. They may rely on the work of other auditors or experts with caution.
4. Auditors must adequately document all audit work performed to support their conclusions.
The document discusses completing the audit process. It covers reviewing for contingent liabilities and commitments, obtaining and evaluating letters from the client's attorneys, conducting a post-balance sheet review for subsequent events, accumulating final evidence including analytical procedures and representation letters, evaluating overall audit results, communicating with the audit committee and management, and addressing the discovery of new information after issuing the audit report.
Audit working papers are documents prepared or obtained by auditors that provide evidence of the audit work performed. They include information used to plan and conduct the audit, as well as evidence to support the auditor's opinion. Working papers serve several purposes, such as providing evidence of compliance with auditing standards, supporting the conclusions in the audit report, and allowing for review of the audit work. They must be organized, indexed, and signed or initialed by the preparer and reviewer. Working papers are the property of the auditing firm but may be subpoenaed by a court.
Varificationa & valuation of assets and liabilitiesAshwitha shetty
The document discusses the duties of an auditor in verifying assets and liabilities in a company's balance sheet. It explains the process of verification, which involves satisfying that assets physically exist and are correctly valued. Verification is done to ensure true and fair financial reporting, detect errors or fraud, and ensure proper internal controls over company assets. The document also discusses distinguishing features of different types of company assets like freehold property, leasehold property, plant and machinery, investments, and intangible assets, and the steps an auditor takes to verify each type of asset.
Presentation on vigilance in banks and financial institutions in IndiaRammohanpnb
The document discusses the definition and scope of vigilance angles in banking. It defines vigilance angles as criminal offenses, irregularities reflecting integrity issues, or lapses involving gross negligence that could result in losses or improper gains. It provides examples of vigilance issues that may arise in areas like account opening, remittances, loan sanctioning, documentation, disbursement, and follow up. Preventive vigilance measures aim to reduce opportunities for corruption at each stage of banking processes. Vigilance is important to enhance efficiency while distinguishing between bona fide decisions and mala fide lapses.
PRESENTATION ON FINANCIAL STATEMENT FRAUDSRATAN AGARWALA
This document discusses financial statement fraud schemes. It defines financial statements and fraud, then outlines various schemes used to commit financial statement fraud such as time manipulations, early recognition of revenues, and postponing expenses. It also discusses perpetrators of fraud, reasons for fraud, and red flags that could indicate fraud. Methods for detecting and preventing financial statement fraud include analyzing unusual patterns in accounts receivables, cash flows, and asset/liability balances. The Beneish model is presented as a tool for detecting fraud using eight financial ratios.
The document discusses the audit risk model, which states that audit risk (AR) is equal to inherent risk (IR) multiplied by control risk (CR) multiplied by detection risk (DR). It defines each component of the model. It also discusses how the different risk components are assessed and interrelated, how internal controls objectives are designed to prevent and detect misstatements, and the importance of risk assessment in an organization's internal controls.
This document discusses audit sampling, including defining audit sampling and distinguishing between sampling and non-sampling risk. It explains the steps in planning and selecting a sample, describing statistical and non-statistical sampling methods. Random, systematic, and haphazard sample selection techniques are covered. Factors that influence sample size are addressed for both tests of controls and substantive procedures.
The document discusses the nature and purpose of auditing. It defines auditing as the verification of accounting and financial records to determine accuracy and reliability. The primary objective of an audit is to express an expert opinion on whether the financial statements present a true and fair view. Secondary objectives are to detect and prevent errors and fraud. Specific objectives include verifying accounts and records and reporting on the profit/loss and financial position. The document also differentiates between auditing and accounting in terms of scope, objective, status, qualifications, time period of work, tenure, and accountability.
This chapter provides an overview of auditing. It covers topics like generally accepted auditing standards, competence and independence of auditors, audit planning and supervision, audit evidence, gathering evidence through inspection, observation, inquiry and other procedures. It discusses auditing in depth by examining the system and tracing transactions. It also covers test checks, related precautions, factors determining sample size, and compliance with accounting standards and enactments. Finally, it lists various accounting and auditing statements, guidance and standards.
The document discusses audit evidence and related concepts:
1. Audit evidence is information used by auditors to arrive at conclusions and includes accounting records and other corroborating evidence. Auditors must obtain sufficient and appropriate audit evidence through audit procedures.
2. Sufficient evidence is a measure of quantity based on risk, materiality, knowledge. Appropriate evidence is relevant and reliable based on source, documentation, and objectivity.
3. Audit procedures include inquiry, observation, inspection, confirmation, recalculation, and analytical procedures to obtain evidence for assertions about transactions, account balances, and disclosures.
Fraud in the banking sector is a major concern. The document discusses the types, causes, and extent of fraud based on RBI data. It notes that technology-related frauds make up 65% of cases reported by banks. KYC-related and advances-related fraud are also issues. Nationalized banks account for the largest share (83%) of the total fraud amount. Common fraud types include account opening, cheque, loan, and money laundering. The RBI has issued guidelines to banks on preventing fraud and reporting fraud cases over certain amounts.
The document discusses techniques for verifying assets and liabilities during an audit. It outlines six key techniques: 1) verifying physical existence, 2) assessing correct valuation, 3) confirming ownership, 4) ensuring proper disclosure, 5) identifying any charges on assets, and 6) checking for proper authorization of transactions. Specific procedures are described for different asset types, including obtaining certificates from management and third parties. The auditor must also consider events after the balance sheet date and obtain a management representation letter.
1. Auditing originated in the 18th century with the rise of large-scale industries and businesses, which led to more complex accounting practices.
2. Auditing involves the systematic and independent examination of a company's financial records and documents to verify that the financial statements accurately reflect the company's transactions and financial position.
3. Auditing provides benefits such as detecting errors and fraud, protecting shareholder interests, checking directors and management, and giving an independent opinion on the business's financial health. However, auditors also face limitations like not detecting every fraud and having to rely on information from company personnel.
The document discusses audit evidence and procedures for gathering evidence. It defines audit evidence and its basic principles of independence, integrity, and objectivity. It describes the sources of audit evidence, including physical examination, confirmations, documentation, analytical procedures, inquiries, reperformance, and observation. It discusses factors like audit risk, reliance on controls, materiality, and reliability that influence evidence. It also covers the appropriateness, relevance, reliability, and direction of testing for audit evidence. Finally, it discusses substantive procedures used to detect material misstatements.
CPAs responsibilities to detect fraud in audits, required approaches, types of financial statement frauds and specific case examples of different types of financial statement fraud
This document provides an overview of audit planning topics including:
- The importance of audit planning to obtain sufficient evidence and keep costs reasonable.
- Key planning activities like understanding the client's business, assessing risks, and developing responses.
- How inherent, control, and detection risks contribute to overall audit risk.
- The use of analytical procedures during planning, fieldwork, and completion to identify unusual fluctuations.
- The three phases of audit work: planning, interim, and final, and how they relate to risk assessment and evidence gathering.
The document discusses internal controls in auditing, including the objectives, components, and case studies related to internal controls. It describes the control environment, risk assessment, control activities, information and communication, and monitoring as the main components of internal controls. The document also differentiates between substantive tests and tests of controls in auditing.
This document discusses the process of vouching in auditing. It defines vouching as verifying the authenticity and authority of transactions recorded in accounting books by comparing them to supporting documentation. The key types of vouchers and objectives of vouching are ensuring transactions are correctly recorded, supported by evidence, and properly authorized. Vouching is an important audit procedure for examining transactions in cash books, subsidiary books, journals, and ledgers.
Auditing involves independently examining financial statements to provide an opinion. An auditor must follow general principles including maintaining objectivity and skepticism. Key responsibilities involve planning the audit, obtaining sufficient evidence, and documenting the work. Audits have inherent limitations as they are based on samples rather than 100% verification. If fraud or non-compliance with laws is identified, the auditor communicates with management and those charged with governance. Joint auditors divide the work but are jointly responsible for undivided areas.
The document discusses the role and importance of auditors in evaluating financial information. It describes how the Enron scandal illustrated the responsibility of auditors to users of financial statements. In response, Congress passed the Sarbanes-Oxley Act, which established oversight of auditors and required reporting on internal controls. The document then defines auditing as the accumulation and evaluation of evidence to determine if information corresponds to established criteria, and notes it should be done by competent and independent persons.
The document outlines 9 basic principles that govern an audit:
1. Integrity, objectivity and independence are required of auditors. Auditors must maintain impartiality and protect confidential client information.
2. Auditors must have the proper skills and competence to perform audits and keep their expertise up to date.
3. Auditors are responsible for properly supervising any work delegated to assistants. They may rely on the work of other auditors or experts with caution.
4. Auditors must adequately document all audit work performed to support their conclusions.
The document discusses completing the audit process. It covers reviewing for contingent liabilities and commitments, obtaining and evaluating letters from the client's attorneys, conducting a post-balance sheet review for subsequent events, accumulating final evidence including analytical procedures and representation letters, evaluating overall audit results, communicating with the audit committee and management, and addressing the discovery of new information after issuing the audit report.
Audit working papers are documents prepared or obtained by auditors that provide evidence of the audit work performed. They include information used to plan and conduct the audit, as well as evidence to support the auditor's opinion. Working papers serve several purposes, such as providing evidence of compliance with auditing standards, supporting the conclusions in the audit report, and allowing for review of the audit work. They must be organized, indexed, and signed or initialed by the preparer and reviewer. Working papers are the property of the auditing firm but may be subpoenaed by a court.
Varificationa & valuation of assets and liabilitiesAshwitha shetty
The document discusses the duties of an auditor in verifying assets and liabilities in a company's balance sheet. It explains the process of verification, which involves satisfying that assets physically exist and are correctly valued. Verification is done to ensure true and fair financial reporting, detect errors or fraud, and ensure proper internal controls over company assets. The document also discusses distinguishing features of different types of company assets like freehold property, leasehold property, plant and machinery, investments, and intangible assets, and the steps an auditor takes to verify each type of asset.
Presentation on vigilance in banks and financial institutions in IndiaRammohanpnb
The document discusses the definition and scope of vigilance angles in banking. It defines vigilance angles as criminal offenses, irregularities reflecting integrity issues, or lapses involving gross negligence that could result in losses or improper gains. It provides examples of vigilance issues that may arise in areas like account opening, remittances, loan sanctioning, documentation, disbursement, and follow up. Preventive vigilance measures aim to reduce opportunities for corruption at each stage of banking processes. Vigilance is important to enhance efficiency while distinguishing between bona fide decisions and mala fide lapses.
This document discusses fraud prevention and internal controls for banks. It defines fraud and outlines common types of internal and external fraud such as forgery, misposting of deposits, fictitious loan accounts, and check kiting. It also describes key internal controls including proper accounting records, independent balancing, division of duties, dual control, and rotation of duties. The document emphasizes that strong internal controls can help prevent fraud from occurring and ensure the accuracy of bank records.
This document discusses various ethical issues that can arise in the finance sector. It covers frauds like credit card and check fraud, securities fraud, and computer fraud. It also discusses types of bank frauds such as unauthorized credit extensions and deposit account fraud. Regarding the insurance sector, it identifies three types of fraud and notes fraud can occur during the proposal, contract, or claims stages. It also provides measures to combat fraud in banking like anti-money laundering acts and for insurance like regulation, transparency, and legislation. The document closes by discussing creative accounting, abusive tax shelters, insider trading, and the role of ethics codes.
The document discusses fraud prevention and control objectives including implementing robust fraud controls, complying with regulations, defining clear roles and responsibilities, recommending protective measures, and establishing investigation and reporting mechanisms. It notes fraud continues to be a concern and how fraudsters leverage technology. Key elements of fraud and the fraud triangle of opportunity, rationalization, and pressure are examined. Fraud indicators related to customers, products, staffing, and organizational risks are provided. Reporting requirements for significant fraud cases to compliance and internal audit are outlined.
KYC Norms and Audit of Advances - Fresh PerspectivePranav Joshi
The document discusses Know Your Customer (KYC) norms and procedures for scrutinizing loan cases. It outlines the basics of KYC policies, including customer acceptance, identification, risk management and transaction monitoring. Key documents required for KYC include photo ID, address proof, and PAN card. The document also discusses approaches for auditing loan files, including verifying the primary source of repayment, fallback arrangements like collateral securities, and monitoring credit. Banks can be penalized by RBI for non-compliance with KYC norms such as incomplete forms or lack of ongoing customer due diligence.
This document provides information on fraud, the duties of auditors, and accounting principles. It discusses various methods of defalcation and fraud, how auditors can detect fraud, an auditor's duties regarding fraud investigation, and the advantages and limitations of audits. It also outlines powers and duties of auditors according to law, including their rights to company documents and information, and qualifications for auditors. Finally, it discusses the concept of a "true and fair view" in financial reporting and an auditor's role in ensuring accounts provide this.
We had another great webinar presented by Dave Hammarberg (Director of IT and Consulting Senior Manager) and Jim Shellenberger (Senior Manager) with McKonly & Asbury! Thank you to everyone that attended and received CPE credit.
We discussed what skimming is and went into a discussion of several examples and how to detect and prevent your organization from becoming a victim of skimming.
Check out our Upcoming Events page for news and updates on our future seminars and webinars.
For more information on this topic or to submit a question for Dave or Jim, use our contact page at www.macpas.com/contact.
www.macpas.com/webinar-recap-skimming-what-the-auditors-miss
February 6, 2014 presentation to Community Bankers Association of Georgia's BSA Officer's School covering Money Services Businesses (MSBs), Bank Secrecy Act / Anti-Money Laundering (BSA/AML), Office of Foreign Asset Control (OFAC), and operational considerations.
This document discusses auditing for fraud detection. It outlines the fraud triangle, which consists of three elements necessary for fraud to occur: pressure/motivation, opportunity, and rationalization. It then provides examples of each element and differences between audit and fraud. The document details various procedures that are prone to fraud due to non-adherence to systems or system loopholes across different departments. It also includes case studies of past fraud instances and remarks on them. Finally, the document outlines an action plan adopted to investigate surrendered policies and provides various final observations from the investigation.
KYC (Know Your Customer) procedures require banks to verify customer identities and monitor transactions to combat money laundering and terrorist financing. RBI (Reserve Bank of India) mandates that banks follow KYC guidelines under the Banking Regulation Act of 1949. Banks must have customer identification and verification procedures in place when opening accounts or conducting high-value transactions to comply with KYC regulations. Failure to properly implement KYC norms can result in penalties imposed by RBI as some banks were fined for opening accounts without proper verification that enabled fraudsters to steal money from customer accounts.
This document discusses key principles of sound lending for banks. It outlines cardinal principles like liquidity, safety, diversity and profitability. It also describes loan classification criteria, credit investigation process, loan pricing factors, importance of loan supervision and follow up. Loan security mechanisms are discussed along with stock statements that banks require from business loan customers.
This document discusses key principles of sound lending for banks. It outlines cardinal principles like liquidity, safety, diversity and profitability. It also describes loan classification criteria, credit investigation process, loan pricing factors, importance of loan supervision and follow up. Security of loans can include mortgages, guarantees or liens. Banks typically require stock statements from business loan customers to monitor inventory levels.
This document discusses key principles of sound lending for banks. It outlines cardinal principles like liquidity, safety, diversity, and profitability. It also describes loan classification criteria, the credit investigation process, loan pricing factors, supervision and follow up of loans, security for loans, and the purpose of stock statements. Banks must examine borrower creditworthiness, security, and loan purpose and classify and supervise loans properly to ensure sound lending.
The document outlines guidelines for anti-money laundering programs for insurers in India. It defines money laundering and its three stages: placement, layering, and integration. It discusses Know Your Customer (KYC) policies, including documentation requirements. It also covers risk profiling customers, suspicious transactions, reporting requirements, and penalties for money laundering. The overall summary is that the document provides an overview of India's regulations for insurers to establish anti-money laundering programs and procedures to combat financial crimes.
Financial ethical issues presentation by Ihsanullah mansoor from Afghanistan,currently enrolled student of the University of Haripur ,Haripur KPK,Pakistan
Obtain written representation from management that all litigation, asserted and unasserted claims, and assessments have been disclosed in accordance with FASB ASC Topic 450.
Similar to Role of Audit for detection of fraud. (20)
This document provides information about R Ravindra Kumar, including his background and experience in human resources, coaching, and spiritual guidance. It discusses his qualifications and areas of expertise, which include stress management, coaching professionals, and helping people achieve their career and life goals. The document also provides contact information for R Ravindra Kumar and an invitation for people to discuss their goals and dreams with him.
IF YOU FEEL/SUFFER FROM Aches and pains in the body.
Frequent bout of cough and cold.
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Seeing only the negative.
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Favored With Psychic Abilities, Ravi has Honed Him To A Level Where He Can Heal And Transform Lives. Engaged With His Profound Occult Knowledge And A Powerful And Selfless Will To Serve, He Extensively Conducts Healing Sessions, Workshops And Offers Remedies For The Karmic Deficits.
As a Coach, Facilitator, Manager and Trainer, He has been Helping Professionals
Achieve their Career Goals since the 1999.. He is having much passion and interest
coaching to Sales Executive, and Management professionals from corporations, as he
is working with employees from all levels of organizations and Internationally Educated
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What are Negative Emotions and why are they important? Negative emotions, in particular, can help you recognize threats and feel prepared to positively handle potential dangers . Many different experiences in our lives will incite different emotional reactions, to differing degrees of intensity.
R Ravindra Kumar has 30 years of experience working for worlds largest Life Insurance Company LIC OF INDIA in India and abroad at Fiji Islands. Presently working as Regional Manager in LIC OF INDIA.
Favored With Psychic Abilities, Ravi has Honed Him To A Level Where He Can Heal And Transform Lives. Engaged With His Profound Occult Knowledge And A Powerful And Selfless Will To Serve, He Extensively Conducts Healing Sessions, Workshops And Offers Remedies For The Karmic Deficits.
As a Coach, Facilitator, Manager and Trainer, He has been Helping Professionals
Achieve their Career Goals since the 1999.. He is having much passion and interest
coaching to Sales Executive, and Management professionals from corporations, as he
is working with employees from all levels of organizations and Internationally Educated
Professionals, as well as students and graduates from colleges and universities.
Throughout his career, he worked with clients of outplacement and career transition
firms, colleges, and community employment centers. In his work, has provided
Coaching and consulting to clients of all levels of organizations - Vice President to
Employees beginning their careers.
Widely travelled Sri Ravindra Kumar is a multilingual leader and Spiritual Mentor with a
wide experience in multi-cultural and global environment. Reading, music, creative
presentations and development of human resources are his areas of special interest.
MANAGERIAL CREATIVITY Managerial creativity is that every small step taken by the managers to improve the work they do. Creativity is a process of developing and expressing new ideas that are likely to be useful.
Creativity is about the generation and sharing of ideas.
Creativity is not the monopoly of some special people.
Everyone has the ability to be creative in their own fields.
All of us can use creativity in our day to day work.
We can discover and develop our creativity by learning to think freely. Creativity means generating ideas without any inhibitions.
R Ravindra Kumar has 30 years of experience working for worlds largest Life Insurance Company LIC OF INDIA in India and abroad at Fiji Islands. Presently working as Regional Manager in LIC OF INDIA.
Favored With Psychic Abilities, Ravi has Honed Him To A Level Where He Can Heal And Transform Lives. Engaged With His Profound Occult Knowledge And A Powerful And Selfless Will To Serve, He Extensively Conducts Healing Sessions, Workshops And Offers Remedies For The Karmic Deficits.
As a Coach, Facilitator, Manager and Trainer, He has been Helping Professionals
Achieve their Career Goals since the 1999.. He is having much passion and interest
coaching to Sales Executive, and Management professionals from corporations, as he
is working with employees from all levels of organizations and Internationally Educated
Professionals, as well as students and graduates from colleges and universities.
Throughout his career, he worked with clients of outplacement and career transition
firms, colleges, and community employment centers. In his work, has provided
Coaching and consulting to clients of all levels of organizations - Vice President to
Employees beginning their careers.
Widely travelled Sri Ravindra Kumar is a multilingual leader and Spiritual Mentor with a
wide experience in multi-cultural and global environment. Reading, music,creative
presentations and development of human resources are his areas of special interest.
After Retirement My children will look after me
Social structure is changing – Joint families to Nuclear families.
Moral values are not the same as they were.
Managing your financial wellness is critical so that you don’t depend on children. R Ravindra Kumar has 30 years of experience working for worlds largest Life Insurance Company LIC OF INDIA in India and abroad at Fiji Islands. Presently working as Regional Manager in LIC OF INDIA.
Favored With Psychic Abilities, Ravi has Honed Him To A Level Where He Can Heal And Transform Lives. Engaged With His Profound Occult Knowledge And A Powerful And Selfless Will To Serve, He Extensively Conducts Healing Sessions, Workshops And Offers Remedies For The Karmic Deficits.
As a Coach, Facilitator, Manager and Trainer, He has been Helping Professionals
Achieve their Career Goals since the 1999.. He is having much passion and interest
coaching to Sales Executive, and Management professionals from corporations, as he
is working with employees from all levels of organizations and Internationally Educated
Professionals, as well as students and graduates from colleges and universities.
Throughout his career, he worked with clients of outplacement and career transition
firms, colleges, and community employment centers. In his work, has provided
Coaching and consulting to clients of all levels of organizations - Vice President to
Employees beginning their careers.
Widely travelled Sri Ravindra Kumar is a multilingual leader and Spiritual Mentor with a
wide experience in multi-cultural and global environment. Reading, music, creative
presentations and development of human resources are his areas of special interest.
Communication is the act of transferring information through speech, the written word, or more subtle non-verbal ways
R Ravindra Kumar has 30 years of experience working in worlds largest Life Insurance Company LIC OF INDIA in India and abroad at Fiji Islands. Presently working as Regional Manager in LIC OF INDIA.
As a Coach, Facilitator, Manager and Trainer, He has been Helping Professionals
Achieve their Career Goals since the 1999.. He is having much passion and interest
coaching to Sales Executive, and Management professionals from corporations, as he
is working with employees from all levels of organizations and Internationally Educated
Professionals, as well as students and graduates from colleges and universities.
Throughout his career, he worked with clients of outplacement and career transition
firms, colleges, and community employment centers. In his work, has provided
Coaching and consulting to clients of all levels of organizations - Vice President to
Employees beginning their careers.
Widely travelled Sri Ravindra Kumar is a multilingual leader and Spiritual Mentor with a
wide experience in multi-cultural and global environment. Reading, music,creative
presentations and development of human resources are his areas of special interest.
Business etiquette is about building relationships with other people. Etiquette is not about rules & regulations but is about providing basic social comfort and creating an environment where others feel comfortable and secure, this is possible through better communication.R Ravindra Kumar has 30 years of experience working in worlds largest Life Insurance Company LIC OF INDIA in India and abroad at Fiji Islands. Presently working as Regional Manager in LIC OF INDIA.
As a Coach, Facilitator, Manager and Trainer, He has been Helping Professionals
Achieve their Career Goals since the 1999.. He is having much passion and interest
coaching to Sales Executive, and Management professionals from corporations, as he
is working with employees from all levels of organizations and Internationally Educated
Professionals, as well as students and graduates from colleges and universities.
Throughout his career, he worked with clients of outplacement and career transition
firms, colleges, and community employment centers. In his work, has provided
Coaching and consulting to clients of all levels of organizations - Vice President to
Employees beginning their careers.
Widely travelled Sri Ravindra Kumar is a multilingual leader and Spiritual Mentor with a
wide experience in multi-cultural and global environment. Reading, music,creative
presentations and development of human resources are his areas of special interest.
CREATIVITY IN RELATIONSHIPS
The Creation of happiness for grief
The creation of laughter for crying
Peace Creation The creation of Health for sick
The Creation of Unity where there is disruption
Excercise practice skill with people
1 understanding people and human nature
2 how to skilfully talk to people
3 how to skilfully make people feel important
Leadership is about Perception… Do you see things as they are? Or as you are? Develop Perception that ‘World is full of opportunities’ and ‘I am full of Potential’
Only your own perception and your own mindset limits you..
This Presentation was Given by me to AMITY UNIVERSITY OF NOIDA
A mudrā (Sanskrit: मुद्रा, lit. "seal") is a symbolic or ritual gesture in Hinduism and Buddhism. While some mudrās involve the entire body, most are performed with the hands and fingers. Mudrā (Sanskrit) is "spiritual gesture" and energetic "seal of authenticity" employed in the iconography and spiritual practice of Indian religions and Taoism. By R Ravi. Shri R Ravindra kumar has Honed Him To A Level Where He Can Heal And Transform Lives. Engaged With His Profound Occult Knowledge And A Powerful And
Selfless Will To Serve, He Extensively Conducts Healing Sessions, Workshops And Offers Remedies For The Karmic Deficits. As a Coach, Facilitator, Manager and Trainer, He has been Helping Professionals Achieve their Career Goals since the 1999..
R Ravindra Kumar has over 30 years of experience in the insurance industry in India and Fiji. He is currently a regional manager for LIC of India. He is an experienced trainer and coach who helps professionals achieve their career goals. He has coached people at all levels of organizations both in India and internationally. Ravindra Kumar is multilingual and has experience working in multicultural environments globally. He is passionate about helping people tap into their full potential and set goals to achieve their dreams.
An Introduction To The 3rd Degree Tools & Techniques to Teach & Pass on Attunements
Simple & practical format
Always more to learn
Beginning of a new Journey
Where you end up is up to you
This program is not for people who are not willing to sharpen their skills..... Click to Fill the forms ..........
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Learning how to find prospects on social media is the first step of creating successful life insurance content marketing strategies. Building solid life insurance content marketing strategies on social media requires that you outline your goals, know what to post, and then “Just Do It.”But before you begin, let’s dive a bit deeper into WHAT you’re going to post. This program is not for people who are not willing to sharpen their skills..... Click to Fill the forms ..........
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If you want to Successful AGENCY MANAGER focus on life insurance then make sure to read these tips for recruiting life insurance agents. Without further ado, let’s go through 12 tips on attracting the talent you’re looking for to recruit insurance agents to your agency. Table of Contents. Work With Local Colleges; Find Candidates on LinkedIn ; Specialized Recruitment Agencies; Find Recruits on Other Social Platforms; Hire Temporary Agents and Freelancers; Train Sales and Marketing People; Test Personality, Positivity ..
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Like My YouTube Channel
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ULIP CREATE WEALTH AND PROTECT FAMILY WITH LIC PLANS Why you should buy this plan
Tax-free* market-linked returns
Life Cover Partial/Regular withdrawals without any cost3
Extra Wealth Boosters at 3.25%2
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Methods Of Concentration Numerology is any belief in the divine or mystical relationship between a number and one or more coinciding events. It is also the study of the numerical value of the letters in words, names, and ideas. Numerology purports to tell the future, guide human behavior, predict the outcome of relationships and otherwise divine the unknowable by figuring out a person's numbers. I am starting a CONCENTRATION EXCERCISE BASED ON NUMEROLOGY FOR EACH DAY you have to concentration of Number and it takes only 5 minutes to DO THIS EXERCISE
रेकी एक जापानीज शब्द है जो दो अक्षरों से बना है। रे - का मतलब होता है वैश्विक प्राण ऊर्जा, और की - का मतलब होता है हमरे शरीर की प्राण ऊर्जा. अर्थार्त - स्वयं की प्राण ऊर्जा को इस ब्रह्माण्ड की प्राण ऊर्जा के साथ जोड़ना. रेकी की सभी साधनायें इसी एक सिद्धांत पर आधारित है।
प्रत्येक मनुष्य इस शक्ति के साथ उत्पन्न होता हैं। और पूरे जीवन इसका जाने अनजाने प्रयोग करता रहता हैं। हमारे ऋषि मुनियों ने, संत महात्माओं ने जीवन के आरंभ में ही इस विधि को जान लिया था। और वह इसका प्रयोग करते थें।
Search InnerMap of Heart for Mind 易 Power
律♂️LEARN TO ACHIEVE YOUR DREAMS USING YOUR MIND 易 ️♀️POWER
VISUALIZE, VERBALIZE,
EMOTIONALIZE, PRAYERIZE
AND ACTIONIZE YOUR DREAMS
Shri. R RAVINDRA KUMAR, Spritual Life Coach, Mindful Speaker and Passionate Master Trainer Having 30years of Experience. Will guide you to fulfill YOUR DREAMS using your Giant Within .
How to Explore Power Thinking OF YOUR Subconscious MIND
The day you know how to use your Mind, you are no more a slave to your Heart ,but you become a MASTER to your Emotions, and Successful life.
You can reach out to me on WhatsApp+919726351246
Watch me on FACEBOOK page of ADARSH AMDAVAD
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Like me on Instagram
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Like My YouTube Channel
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Reiki Universal, omnipresent – present everywhere at the same time.
Spiritual consciousness, the omniscient wisdom from God or the higher self
रेकी एक जापानीज शब्द है जो दो अक्षरों से बना है। रे - का मतलब होता है वैश्विक प्राण ऊर्जा, और की - का मतलब होता है हमरे शरीर की प्राण ऊर्जा. अर्थार्त - स्वयं की प्राण ऊर्जा को इस ब्रह्माण्ड की प्राण ऊर्जा के साथ जोड़ना. रेकी की सभी साधनायें इसी एक सिद्धांत पर आधारित है।
प्रत्येक मनुष्य इस शक्ति के साथ उत्पन्न होता हैं। और पूरे जीवन इसका जाने अनजाने प्रयोग करता रहता हैं। हमारे ऋषि मुनियों ने, संत महात्माओं ने जीवन के आरंभ में ही इस विधि को जान लिया था। और वह इसका प्रयोग करते थें।
🌹Search InnerMap of 💓Heart for Mind 🧠 Power 🌹
🧘♂️LEARN TO ACHIEVE YOUR 🎯 DREAMS USING YOUR MIND 🧠 🏋️♀️POWER
VISUALIZE, VERBALIZE,
EMOTIONALIZE, PRAYERIZE
AND ACTIONIZE YOUR DREAMS
Shri. R RAVINDRA KUMAR, Spritual Life Coach, Mindful Speaker and Passionate Master Trainer Having 30years of Experience. Will guide you to fulfill YOUR DREAMS using your 💪 Giant Within 🌺.
👉 How to Explore Power Thinking OF YOUR Subconscious MIND
The day you know how to use your Mind, you are no more a slave to your 💜 Heart ,but you become a MASTER to your Emotions, and Successful life.
You can reach out to me on WhatsApp+919726351246
Watch me on FACEBOOK page of ADARSH AMDAVAD
https://www.facebook.com/AadarshAmd/videos/383543729581403/
https://www.facebook.com/therravindrakumar
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Like me on Instagram
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https://www.blogger.com/blog/posts/3065184067613145236
Like My YouTube Channel
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TO JOIN ME Please Fill this Form https://forms.gle/KHiuUdBdmA2dw2Ri7
Search the Inner Map of for Mind Power Meet me online on 30th April 2021 @6.30 pm
LEARN TO ACHIEVE YOUR DREAMS USING YOUR MIND POWER
VISUALIZE, VERBALIZE, EMOTIONALIZE,PRAYERIZE AND ACTIONIZE YOUR DREAMS
Sh. R Ravindra Kumar, a Passionate Teacher, Coach and Public Speaker. Will guide you to fulfill YOUR DREAMS using your Giant Within.
How to Explore Power Thinking OF YOUR Subconscious MIND
Emotional MIND POWER "Participes Tui Scientia"- the platform of the experts - invites you to a Zoom Meeting for the Best Trainers
Search InnerMap of Heart for Mind 易 Power
律♂️LEARN TO ACHIEVE YOUR DREAMS USING YOUR MIND 易 ️♀️POWER
VISUALIZE, VERBALIZE,
EMOTIONALIZE, PRAYERIZE
AND ACTIONIZE YOUR DREAMS
Shri. R RAVINDRA KUMAR, Passionate Coach, Mindful Speaker and Trainer Having 30years of Experience. Will guide you to fulfill YOUR DREAMS using your Giant Within .
How to Explore Power Thinking OF YOUR Subconscious MIND
The day you know how to use your Mind, you are no more a slave to your Heart ,but you become a MASTER to your Emotions, and Successful life.
Communicating effectively and consistently with students can help them feel at ease during their learning experience and provide the instructor with a communication trail to track the course's progress. This workshop will take you through constructing an engaging course container to facilitate effective communication.
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
Gender and Mental Health - Counselling and Family Therapy Applications and In...PsychoTech Services
A proprietary approach developed by bringing together the best of learning theories from Psychology, design principles from the world of visualization, and pedagogical methods from over a decade of training experience, that enables you to: Learn better, faster!
Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
1. 1
Role of Audit and Inspection in Current
Scenario & Potential areas of Fraud in
Life Insurance
2. Role and Importance of Audit
and Inspection in
Life Insurance
Presented by
R. Ravindra Kumar
Regional Manager
LIC OF INDIA
GANDHINAGAR INSPECTION CENTRE
10/24/2020 rravindrakumar@gmail.com 2
6. Qualities of an Auditor
The Qualities are hidden in the “AUDITOR” :
•A wareness
•U nderstanding
•D iligence
• I nquisitiveness
•T hink on his feet
•O rganised
•R esourcefulness
6
7. 7
Definition of Fraud
Fraud is described as an intentional act of deceiving,
concealing, or misrepresenting information that
results in payment of unauthorized benefits to an
individual or group who are otherwise not entitled.
9. Three elements must be present for fraud to be
executed:
a.a. Pressure/ motivation usually individual
characteristics and situational factors
b.b. opportunities eg available targets ie lack of controls
c.c. rationalization/justification/ neutralization
This is known as the fraud triangle
The Fraud triangle
10. Pressure/ Motivation :
1. Greed
2. Gambling
3. Financial strain - personal
4. Financial strain - business
5. Maintaining own/ family business
6. Influenced/ implicated by others
11. Pressure/ Motivation (Cont.):
7.Pleasing others
8. drug/alcohol addiction
9. Financing new business interests
10. Terminal illness
11. Dissatisfaction with employer
12. Opportunity
Weak or non-existent internal control
1. Lack of segregation of duties
2. Highly decentralized organization
3. Lack of knowledge/awareness
5. Opportunity is the perception by someone believing they can
commit a fraud without getting caught
6. Management control and influences “opportunity” more than any
other factor in the Fraud Triangle
13. Rationalization:
1. Intention to conduct a reasonable business
2. Intention to repay
3. Influenced/ implicated by others
4. Underpaid by employer
5. Helping clients
6. Tone at the top: poor corporate governance
16. AUDITING FOR FRAUDS
Auditing for fraud can be very challenging. It
has the aura of detective work – finding things
people want to keep hidden. However, auditing
and fraud examination are not easy. They
should only be pursued by persons who have
proper training and experience. Thus, fraud
awareness for independent auditors and
internal auditors is the focus of this
PRESENTATION.
17. Learnings from Special Reports in 2018-19
Areas of Concern:
• Violation in KYC/AML Guidelines
• Cancellation of Claim Liability & re-booking
• Maturity claim settled without Policy bond and Discharge voucher
• Discrepancies in cash collection during Demonitisation period
• Discrepancy in alteration in Policy masters through PM Modify
menu-RFM-93
• Third Party Adjustments of Proposal Deposit
• Discrepancy in NEFT transactions
18. Fraud Indicators
The following fraud indicators may include but not limited to, shall be examined closely:
• Unusual employee behavior
• Reluctance to take leave/ Regular long hours worked by key employees
• Over indulgence or being over inquisitive or showing extra interest in other’s
assignments
• Over dependence, blind trust on one person
• Key documents like vouchers, invoices, contracts, files reported missing
• Close relationship with suppliers/Contractors
• Suppliers/Contractors who insist on dealing with a particular employee only.
• Excessive variation in actual expenditure as compared to sanctioned budget.
• Bypassing superiors/subordinates
• Pending bank reconciliations etc
• Payment of loan /surrenders without establishing identity beyond reasonable doubt.
• Bypassing Stores Code procedure
19. Illustrative List of Suspicious Transactions
1. Customer insisting on anonymity, reluctance to provide identifying
information, or providing minimal, seemingly fictitious information.
2. Frequent free look cancellations by customers.
3. Assignments to unrelated parties without valid consideration.
4. Frequent requests for change in addresses
5. Borrowing the maximum amount under an insurance policy soon
after buying it.
6. Adverse Media reports about a customer
7. Information sought by Enforcement agencies
20. Frauds Detected by Different Authorities
Detected by No. Amount ( in lakh)
Informed by Internal Mechanism 265 3068.26
Informed by Outsider 170 1308.96
Informed by Internal Auditors 39 259.72
Informed by LIC Employee 21 262.21
Informed by Whistle Blower 10 127.53
Informed by Govt. Agencies 3 641.00
Informed by Statutory Auditors 1 81.31
Grand Total 509 5748.99
21. No. Particulars of Fraud Amount
1
Lodgment of third party cheque by Development
Officers / Agents
195165
2 Fraudulent Death Claim 2062739
3 Fraudulent Loan / Surrender 4463923
4 Fraudulent NEFT Transaction 478670
5
Submission of forged bills for claiming
reimbursements
1202403
6 Misappropriation from postage account 131797
7 Irregularities in payment of LTC / Sundry Advance 293500
8 Recycling of maturity claims / discounted claims 2962018
9 Huge expense under AMC 565702
10 Fraudulent encashment of cheque 1452500
Frauds Detected by Internal Auditors
22. ROLE OF AUDIT/INSPECTION
• Provide opinion about the adequacy of systems &
procedures to curb a potential fraud.
• Include areas susceptible to frauds in the questionnaire.
• Provide necessary support in causing investigation.
• The minutes of monthly meetings conducted by various
Fraud Monitoring Committees shall be examined during
the course of Audit, Inspection & QMA. Appropriate
debits shall be given by Audit/Inspection if the minutes
are not maintained properly.
• Audit / Inspection departments may make Exception
Reporting to Audit Committee, if required.
23. POTENTIAL AREAS OF FRAUD
Marketing/Sales
• Lack of control over saleable literature
• Payment Advances to Agents without proper care
• Proposer’s /policyholders money used for third party payments by
Development Officers and agents
• Splitting of Policies without the consent of the proposer
• Settlement of Development Officer’s Appraisal without proper verification of
e.g. FP cheque Dishonour , Scheduled premium
• Calculating the No. of lives without subtracting duplicate lives for GOIB
payment to Dev. Officer and for Finalizing the Club Membership of Agent.
Module is not full proof for calculating the No. of Lives.
• Fake/Forged submission of tickets for travelling allowances
• Adjusting BOC’s of different parties in different names
• Influencing surrender of policies and then procuring new business
• Lack of control in issuance of Gift Cards/ Competition prizes.
• Lapses in determination of Competition qualifiers
24. POTENTIAL AREAS OF FRAUD
Chief Life Insurance Advisor
• Completing fake polices to get undue advantage
• Lack of control on use of Premium point password
• Retention of policy bonds by Agents
Bancassurance & Alternate Channel
• Business canvassed by Bank but completed under
Individual Agency
• Business completed by Bank recycled under Individual
Agency
Senior Business Associates
• Delay in depositing the premium amount
25. POTENTIAL AREAS OF FRAUD
• Micro Insurance
• Collection of premium from policyholders without acknowledgement in the
pass book and not remitting the same in the office.
• Making fake entries in the policy holders pass book without actually
receiving the premium to obtain fabricated claims.
• Taking advantage of fraudulent/suspicious background of the MI Agent
under whom they work and claiming wrong benefits under the policies
• Delay in remitting the premium collected from policy holders.
• Proposing Insurance on the lives of persons who are non-existent to lodge
death claims with forged Death Certificate at later stage.
• Not handing over the original policy document to the policy holder and
subsequent surrender of policies without the knowledge of the policy holder.
• Adjusting Renewal premium towards New Business for inflating the NB
figures.
• Splitting of policies without the consent of the proposer.
• Issuance of policies without proposal form.
26. POTENTIAL AREAS OF FRAUD
Finance and Accounts
• Alteration in cheque, E.g. Name and amount in the cheque
altered
• Late lodgment of cash collected
• Lack of control on receipt stationery- stock register not
maintained properly
• Inadequate control on cancelled transactions and safe
custody of cheque books
• Issue of fresh cheque against stale cheque without proper
care
• Cheque favouring LIC of India from Cheque cancelled a/c
and policy payments misused- Fresh cheque drawn and
used for payment of unrelated policyholders premium or
fresh proposal
27. Finance and Accounts contd.
• Fake currency notes of huge amount detected in cash
counter. This may be due to replacement of legitimate
currency by fake currency
• Recycling of death/maturity /SB claims to third party.
Cheque pertaining to claims issued in favour of LIC of
India and used to pay premiums or proposal deposits of
unrelated parties.
• Cheque issued without validation of vouchers leading to
double payment
• Misuse of cheque leaves to issue cheque in personal name
without validation.
• Bank reconciliation is adjusted and opening balance of
certain account codes are altered to tally the Trial
Balance
• Unused and incorrect Cheque books lying in the stock of
cheque books.
28. POTENTIAL AREAS OF FRAUD
Policy Servicing
• Payment of Loan:
– along with the history of RFM 93 { correction in master details such as
Prem., Sum Assured, Plan/Term }
– on the basis of frequent requests of duplicate policy received from a
agent.
• Payment of Surrender value:
– along with history of RFM 93 { correction in master details such as
Prem., Sum Assured, Plan/Term },
– on the basis of requirements of lost policy
• Reduction in O/S loan by way of RFM without supporting documents
• Change in address/ECS details/NEFT master without request from P.H.
• Refunds debiting Renewal prem. A/C
• Lack of control on undelivered policy bonds for reassignment after full
repayment if loan
29. POTENTIAL AREAS OF FRAUD
Underwriting & Reinsurance
• Non-disclosure of material facts at the time of proposal
• Fake medical examination and Special medical
examination
• Forging of special reports by TPA for completion of new
business
• Delayed/no cheques dishonor action of proposal deposit
• Proposals completed in contravention of the higher office
decision
• Proposals completed without underwriting by Competent
Authority
• Non-disclosure of correct age
30. Underwriting & Reinsurance contd.
• Forged/fake financial documents, Age proofs, identity
proofs etc.
• Conversion of Single into Regular premium mode etc.
• Non Compliance to KYC/AML
• Misuse of outstanding proposal deposits
• Delayed or no Reconciliation of proposal deposit schedule
• Insurance on the lives if non-existent parties
• Insurance to uninsurable lives
• Third party adjustment of BOC
• Lack of control over policies returned undelivered with
remark ”No such person”
• Refund of proposal deposits to incorrect payee
31. New Business to Death Claims
• last few years there is no growth in no of policies. Hence
we should Firstly identify branches where there is more
than 10 % increase in non early claims in last few years,
All their death certificates are genuine or not can be
confirmed or checked especially in certain pockets or
areas ( reinsurance companies have shared the data
where the fraud is more. I can give that but it was given
by them in 2018) we can hire some agencies may be. All
these fraudsters test the method and where it is weak do
more Fraud. most private life insurance have helped
mathematical model where high risk life is investigated
at NB stage and secondly they use CIBIL data.
10/24/2020 rravindrakumar@gmail.com 31
32. FRAUD INDICATORS
The following fraud indicators may include but are
not limited to shall be examined closely:
• Unusual employee behavior
• Reluctance to take leave/ Regular long hours worked by key
employees
• Over indulgence or being over inquisitive or showing extra
interest in other’s assignments
• Over dependence, blind trust on one person
• Key documents like vouchers, invoices, contracts, files reported
missing
• Close relationship with suppliers/Contractors
• Suppliers/Contractors who insist on dealing with a particular
employee only.
• Excessive variation in actual expenditure as compared to
sanctioned budget.
33. Contd.• Tender conditions floated in such a way that can be met
only by specific contractors.
• Selection of a single vendor/Contractor for many tasks
• Vague tender specifications/Disqualification of any qualified
bidder on flimsy grounds
• Frequently overriding internal checks & controls
• Bypassing superiors/subordinates
• Inadequate monitoring & lack of oversight to ensure that
controls function as intended.
• Lack of periodic testing and evaluation
• Arrears of work
• Pending bank reconciliations etc
• Payment of loan /surrenders without establishing identity
beyond reasonable doubt.
• Bypassing Stores Code procedure
35. Category Case Study Remark
Diary and
calendar
Sold diary and calendar and collected
cash.
J.V. passed : debiting renewal
commissioncrediting D&C.
**Fraudbyemployee**
Excess
commissionpaid
Through add option commission of
orphan policies added and with the
connivance of agent shared the excess
amount.
**Fraudbyemployee**
37. Category Case Study Remark
Fraud in loan
payment
Fake policy bond printed.
Loan raised by submitting fake policy bond.
Green voucher prepared: debited loan interest,
credited a/c-4 favoring fake party.
Loan interest debit to the extent of loan interest
payment to avoid adverse balance.
**Fraud by one
person**
Other: Negligence of
duty.
-
Fraudulent death
Claims , case of
revival.
Charge Sheet was issued to a Sub-staff for
helping in reviving a policy on a policy-holder
who had died and making a fraudulent claim and
also misleading the Claim Investigation Officer
regarding illness and date of death of L.A.
Creation of
NEFT master
Neft Payments were manipulated by AGENTS.
Given own./spouse account no for creation of
NEFT master
NEFT master created
with pre-printed
cheque leaf & Original
Passbook not verified.
Signature was not
verified.
38. O.S. Department
Procedure Fraud Pron area due to non adherence to system System loophole
STORE CODE (TENDERING) LAPSE IN EXERCISE OF DUE CONTROL NON ADHERENCE TO PRESCRIBED PROCEDURE.
CASUAL/CONTRACT
LABOUR/DUMMY EMPLOYEE LAPSE IN EXERCISE OF DUE CONTROL NON ADHERENCE TO PRESCRIBED PROCEDURE.
L.T.C /P.L. ENCASHMENT. DUPLICATE PAYMENTS FOR SAME BLOCK. LACK OF CONTROL IN TR.IN /OUT CASES
STATIONERY ITEMS /I.T.
CONSUMEABLES
EFFECTIVE QUALITY CONTROL CHECK (TENDER
V/S ACTUAL.) NO SYSTEM CONTROL
A.M.C AUTHENTICITY OF REPORTS SUBMITTED WITH TECHNICAL ASPECTNO ESTABLISHED SYSTEM OF CROSS VERIFICATION
People involved Beneficiary Detection
VENDOR/EMPLOEE VENDOR/ EMPLOYEE VERIFICATION OF RECORDS/AUTHENTICITY
EMPLOYEE EMPLOEE VERIFICATION OF APPOINTMENT LETTER /IDENTITY
EMPLOYEE EMPLOYEE
VERIFICATION OF L. T. C CARD AND AUTHENTICITY OF
BILLS.
VENDOR/EMPLOEE VENDOR/ EMPLOYEE
VERIFICATION OF ITEMS RECEIVED & REPORTS OF Q.C.
COMMITTEE.
VENDOR/ EMPLOYEE VENDOR/EMPLOYEEVERIFICATION OF REPORT RECONCILIATION OF REPORTS AND BILLS SUBMITTED BY VENDOR.
39. Category Case Study Remark
Supply by
venders(Stores
item)
Bad quality of printed material supplied.
No proper QC done
Payment released
**fraud by vender**
**negligence by office staff**
Short supply by
vender
No proper register for incoming stocks
and distribution maintained
**fraud by vender**
**negligence by office staff**
Inferior quality /
duplicate supplied
by vender
No proper quality control by QCC **fraud by vender**
**negligence by office staff**
41. Category Case Study Remark
Creation of
NEFT master
Neft Payments were manipulated by
AGENTS.
Given own./spouse account no for
creation of NEFT master
NEFT master created with
pre-printed cheque leaf &
Original Passbook not
verified.
Signature was not verified.
MHR Charge Sheet issued to a Development
Officer for suppressing material
information about health of the Proposer
in MHR
**Fraud committed by D.O. /
M.O. of Branch.
Fake death claim Submitted proposal by suppressing
material fact. Policy continues for more
than 3 years. Fake death certificate
submitted.
**Fraud committed by Policy
holder**
Policy taken for
large S.A. And
submitted death
claims.
1. Policy taken on the life of 80
years old lady- showed 55 years
in proposal. Presented other
person.
2. Taken policy on the life of
mentally retarded person.-
presented healthy person.
3. Presented forged document
before Agent & DO.
4. CBI unearthed the scandal.
**case of impersonation**
43. Category Case Study Remark
Payment to
wrong person
through Green
Voucher.
Payments made without supporting vouchers
amounting to 2.10 crore.(CBI FIR RC 03(A) 2014
dt 13.03.2001
Cheques were blindly signed.
Reconciliation was not done, payments by
“Green Vouchers”
Cheque signing
authorities did not
verify supporting
bills/pay order.
Prepayment
vouching not done.
***Fraud***
***Negligence of
duty***
MI unit: Green Vouchers were used to draw LIC
of India Cheques debiting competitions, Publicity
expenses!
SO: Green vouchers were used for LIC of India
Cheques operating CLIA head of accounts!
MI :Claim proceeds were diverted for NB. The
police report indicates that the Death Certificates
were fake.( 49 lacs D/CL amt and 1.38 cr
unremitted amt.)
MI :over adjustment of MI Collections was made
for NB!
Short lodgments
of Cash
Denomination of cash wrongly mentioned in
DCB and Pay-in-slip.
Concerned person did
not reconcile the
amount of DCB &
pay-in-slip from Cash
Book.
** Negligence of
duty**
** Cash lifting
person took
advantage of
negligence**
44. Category Case Study Remark
Control over
R.R. Register
Cheques towards Renewal Premium of a
Employer Employee scheme were diverted to NB
and others RP
On the basis of a complaint, case was filed under
EOW,R No 81/2013 ( RS 3.72 crore)
Missing cash
box
Charge Sheet was issued to a Cashier for i) Not
locking the cash counter from inside and ii) Not
getting the fishplate in counter fixed.
Facts were called and it was observed from FIR
that the cashier was not handed over the cash
box by sub-staff/key-holders
As per Accounts Manual (before 2006) key-
holders have to hand over cash box to cashier
**Negligence of
duty**
Cash stolen
from Bank
premises
Rs.20 lacs misplaced from Bank premises.
Officer accompanied the cash came to office
when cash reached in the bank premises.
He did not receive the Pay-in-slip after
acknowledgement of Bank.
**Negligence**
45. Category Case Study Remark
Short lodgment
of cash in the
Bank
Bank peon deposit less cash in the bank.
Siphoned more than Rs.20 lacs.
Submit original pay-in-slip in BO.
Lodged cash through Different pay-in-slip in
bank.
Bank reconciliation was pending the branch.
Charge sheet given to cashier, HOD A/C,
Officer accompanied the cash and Bank
Peon.
**Fraud by Bank
Peon**
**Negligence(other
officials)**
Delayed Bank
reconciliation
Absence of Reconciliation/ too much coincidence
are the most prone areas for an intelligent person
to exploit.
Of late Indemnity Bonds/duplicate policies are
used more often to siphon off money.
Non remittance of cash within time frame from
premium points, NGO's(MI)
Third Party
Cheque
Collected cash from Policy holder. Deposited self
cheque. Subsequently, it got dishonored
*Fraud on the part of
intermediaries**
*Negligence of Staff**
46. ACTION PLAN ADOPTED
1. Listing of Policies Surrendered during the period from
01/04/**** to 31/03/****.
2. Listing of Payment Details of Surrendered Policies.
3. Listing of Cheques cleared through A/C IV in bank drawn
in favour of LIC of India
4. Sorting out and Matching the cheques of Surrender Value
payments cleared in favour of LIC of India.
5. Matching of Cheque numbers recycled to Transaction
number in Collection books (From Cheque number to
Transaction Number) in respect of the SV cases
6. Matching of Transaction Numbers to BOC in respect of the
SV cases.
47. ACTION PLAN ADOPTED
CONTD.,7. Listing of Adjustment Details of the BOCs recycled from
Surrender Payments.
8. Matching of Completion Details with that of Surrendered
Policy details.
In the above process 1000 dockets of NB cases completed
in respect of 275 cases from Surrender were physically
verified to list out the discrepancies.
48. Hindrances in the process
1. Cheques issued in favour of LIC of India if cleared
in other branch offices could not be matched.
2. Recycled cheques where details of only one
cheque were entered for consolidated sum of
multiple cheques in the amount column also could
not be matched through system.
3. Log files for the same could not be obtained from
Branch Office as it is only extracted on weekly
basis.
49. Final Observations
1. Master modification for status code
RFMs through RFM93 for status code corrections were not
noticed in respect of the surrendered policies.
2. Issue of Alert Report:
Of all the policies surrendered during 01-04-**** to 31-03-
****, 2 policies were reinstated. Out of which one policy
finds place in the Audit Report for the year **** for a large
number of discrepancies and Alert Report was issued by
Audit Department.
50. Final Observations.. Contd.,
3. SV cheques not encashed :
Two cheques of SV were still lying to the credit
cheque cancelled account as on date of special audit.
4. Recycling register details
1. Cheques have been handed over to Branch Manager in large
numbers.
2. From 01-04-**** to 31-03-****, Details of disposal of cheques
favoring LIC of India are left blank.
3. In numerous cases, Cheques handed over to Development officer
and Agents.
4. Cheques in favor of LIC were not accounted directly at cash
counter and also disposal particulars were not noted on the
register.
51. Final Observations.. Contd.,
5. SV proceeds are recycled to NB on the lives of
unrelated proposers: In one of the recycled
cases, the amount was used for completion of
policies under CEIS.
52. Final Observations.. Contd.,
6. Accounting of SV Cheques:
1. There are cases of Accounting of Multiple
cheques under one single cheque number with
consolidated amount of Multiple cheques for
issuing a single BOC.
2. Due to this, only one cheque was being
individually accounted and the rest of them
were being lodged into the bank without being
individually accounted for.
53. Final Observations.. Contd.,
6. Accounting of SV Cheques Contd..:
3. But since all these cheques were issued by LIC
favoring LIC, the credit was received for the consolidated
amount of pay in slip in the bank statement. Hence no
difference found for the purpose of reconciliation on this
count.
4. From 01.07.**** to 31.12.****
Tot Cheques drawn in favor of LIC of India: 695
Total Cheques mentioned in Books : 163
Total no. of Cheques not mentioned : 512
Total amount for 695 Cheques Rs. 3966115 accounted
under 163 Cheques.
54. Final Observations.. Contd.,
7. Reconciliation and Tallying of cash and Cheques
not done on day to day basis with physical
cheques by holder of Key 1.
Eg: On 24/12/****, a cheque was entered for an amount
which was Rs. 50000/- more that the actual amount of the
cheque and rectified on 30/12/****as given below
Date
Cheque
no.
Actual
Amount
Payin
Slip
Amount
Payin
slip no.
Payin
slip
Date.
Payin Slip
Totals
Actual
amount of
cheques
lodged
Remarks
24-12-** 471730 31472 81472 803724-12-13 198984 148984 Error
30-12-** 471738 81472 31472 NA30-12-12 NA NA Rectification
55. Final Observations.. Contd.,
8. Checking of SV records recycled
Month of SV 03/2012, 08/2013, 09/2013,
12/2013
Total No. of Dockets Checked 473
NO consent letter available for
recycling 74
56. Final Observations.. Contd.,
9. Recycling of cases for third party adjustment needed to be
viewed seriously.
Total number of NB cases from SV Proceeds selected for
verification 350
Dockets made available for verification from above 275
No. of proposals completed without requirements of recycled
cases 110
57. Final Observations.. Contd.,
10. Third Party Adjustments from SV recycling
1. No controls on cheques issued in favor of LIC of India
2. These cheques were not accounted in name of Bonafide Policy
holders.
3. Cheques issued in favour of LIC of India instead of policy holder
were used to complete NB on the lives of proposers totally
unrelated to the Surrendered Policy person, with some written
consent.
4. Genuineness of the consent and motives of such consent was
questionable . The whole process was seen as though they were
done to circumvent AML and KYC norms
58. Final Observations.. Contd.,
10. Third Party Adjustments from SV recycling Contd.,
5. Amount utilisted for Third party adjustment
Financial Year
NB completed on lives of
Third party
2012-20** Rs. 715090
2013-20** Rs. 12180979
59. Final Observations.. Contd.,
11. QMA reports.
QMA reports do not suggest or point out
1. Third party adjustments of proposal deposits on large scale.
2. Unusual accounting of Multiple cheques for single BOC
3. Surrendering of 1242 policies with FUP less than or equal to
03/2009
4. Practice of issuing lump sum deposits in all cases by
circumventing AML/KYC norms
60. Involvement of Personnel in the process
1. PS Dept: Prepared SV Vouchers with payment in favour of LIC of
India for recycling, against the procedure. Especially for
conventional Policies.
2. F&A Dept: Not issuing BOC in name of bonafide policy holder,
Bank lodgment of the cheques without accounting individual
cheques, Issuing of Block BOCs, not maintaining register for
handing over of cheques.
3. NB dept: Completion of policies without proposal, Third party
adjustment violating AML guidelines, Bypassing the alerts given
by the module during completion of proposals.
4. Branch Manager: As per recycling register, Cheques were
personally collected by BM. Out of these, many were adjusted for
third parties thereby violating AML/KYC norms.
5. Others: Third party adjustments are scattered over such a wide
spectrum of policyholders, agents, Development officers, SBA
61. Conclusion
1. All the cases where SV amounts were recycled into NB
on the lives of third parties may result into complaints
at a later date.
2. As consideration amount towards proposals was not
received from the new policy holders, validity of the
policies raises serious legal issues.
3. As a corollary, commission paid to agents, Credit to
Development officers may need to be revisited
62. Case Study
• Facts of the fraud: HGA of a branch misused his
Official Position by Operating LIC’s Bank Account and
by fraudulently issuing & encashing 206 Cheques in f/o
his close aides, thereby causing financial loss of
Rs.5,90,36,928/- to LIC.
• How the fraud was perpetrated:
• The HGA was posted in Accounts dept. of a BO for 10
years and was considered to be an expert. He
voluntarily took upon himself additional jobs like
functioning as Cashier, Lodgment of Cheque & Cash
Collections into the Bank, disposal of Dishonored
Cheques, Transfer of funds from one Bank Account to
another Bank Account of LIC, Monthly Reconciliation
of Bank Accounts, Preparation & Validation of
Payment Vouchers & Cheques in the System.
63. Case Study (contd.)
• The HGA would debit Cheque Cancelled A/c and prepare
payment vouchers in his/ others’ names. He would
manage to get the vouchers checked/ passed by other 2
officials. These officials would blindly sign the vouchers
without verifying the facts.
• He would prepare, check and pass the vouchers in the
system by misusing passwords of other officials.
• He got policies issued on his and his wife’s lives thru’
his cheques without balance in his SB A/c. When the
cheques were returned dishonoured, he retained the
same and did not take CD action.
• While functioning as Cashier, he also misappropriated
cash received from policyholders by debiting Foreign
Exchange A/c. Subsequently, he would pass journal
entries debiting some other A/c like Renewal Premium or
Agents Commission A/c.
64. Case Study (contd.)
• System inadequacies/ Violation of procedures:
• Gross negligence and total lack of control displayed by
different HODs of Accounts Dept. of the branch over a
very long period.
• Functioning of the HGA was not supervised. Because of
his expertise in all Accounts matters, blind faith was
reposed in him, of which he took undue advantage.
• Secrecy of individual passwords was not maintained
and he used the same to prepare, check and pass the
fraudulent vouchers.
• Need for rotation of personnel within different
departments in the branch.
65. Forensic Audit
• 'Forensic Audit‘ may be solution
• An examination and evaluation of a firm's or
individual's financial information for use as evidence
in court.
• A forensic audit can be conducted in order to
prosecute a party for fraud, embezzlement or other
financial claims.
• In addition, an audit may be conducted to determine
negligence or even to determine how much spousal
or child support an individual will have to pay.
•
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67. Claims Assessment –
External Tools
• Checking of Pan Card – Age proof
• Voter Id – Age proof
10/24/2020 rravindrakumar@gmail.com 67
68. Pan Card – Age proof
Pan card No. to be verified online through
Pan Card verification – This is one of the common Age proof used
In India https://tin.tin.nsdl.com/tan/servlet/PanStatusTrack
Pan card verification with Date of issuance.
https://onlineservices.tin.egov-
nsdl.com/etaxnew/PopServlet?rKey=-1400850481
PAN No
Date of issue
Date of Birth
Signature match
69. PAN Structure
Know your PAN Structure
•A — Association of Persons (AOP)
•B — Body of Individuals (BOI)
•C — Company F — Firm
•G — Government H — HUF (Hindu Undivided Family)
•L — Local Authority J — Artificial Judicial Person
•P — Individual T — AOP (Trust)
PAN description
•The fifth character of the PAN is the first character
(a) of the surname or last name of the person, in the case of a
“Personal” PAN card, where the fourth character is “P” or
(b) of the name of the Entity, Trust, society, or organisation in
the case of Company/ HUF/ Firm/ AOP/ BOI/ Local Authority/
Artificial Jurdical Person/ Govt, where the fourth character is
“C”,”H”,”F”,”A”,”T”,”B”,”L”,”J”,”G”.
•The last character is an alphabetic check digit
70. Voter Id – Age proof
Date of
birth
Address
proof
Date of
issue
Date
of
birth
Election Card
http://electoralsearch.in/##result
Area
71.
72. ITR Verification
• Verification of Income Tax Returns filed
online
https://incometaxindiaefiling.gov.in/
• IP Address of the IT returns filed check
http://www.iptrackeronline.com/
75. BSR Code Check
• Online Challan check – verification of
tax payment by the Insured.
https://tin.tin.nsdl.com/oltas/servlet/Quer
yTaxpayerAjax
76. External Tools - Claims
Assessment
76
• Facebook – Group Claims, Young Lives
• Linked-in – Professionals, Salaried
• Reverse email look up – To confirm email IDs.
http://www.spokeo.com/email-search
• Google images https://images.google.com/
• Mobile check- True caller online
https://www.truecaller.com/
77. External Tools - Claims
Assessment
77
• Mobile Tracker – Location of your mobile
phone where it was registered
http://tracker.mobileringtonesstore.com/
• Google Maps (To understand the
distance between residence/ office/
nearest hospital/ Police station from the
actual place of incidence/ accident/
death etc.)
https://www.google.com/maps/@
78. External Tools - Claims
Assessment
78
• Ombudsman Cases for claims reference
http://www.gbic.co.in/synopsis.html
• Tracking of Grievances – IRDA
http://www.policyholder.gov.in/Life_Grievances_Analysis.a
spx
• Company - http://www.zaapr.com/
https://www.zaubacorp.com/
• List of Blacklisted/ Broadcasted medical centers shared
with the Industry – Medical Network Task Force (MNTF).
(Specific to Indian Market).
• List of negative locations shared in the Industry (Specific
to Indian Market).
• http://www.1bhkflatinpune.com/property/7-12-utara-online/
79. Valid DC check
Date of
Registration
DC signing
Authority
Date of
Death
Valid
stamp
& Seal
Date of
issue of
DC
Online DC
check
81. 81
*******************************
A PERSON PAINTING A PICTURE HAS TO
TAKE A FEW STEPS BACKWARDS
SOMETIMES. WHY?
*******************************
TO VIEW – “ HIS CREATION
FROM A DISTANCE”. TO
LOCATE ERRORS, IF ANY.
82. 82
THEN, WHY NOT, THE DIVISIONS & BRANCHES
THEMSELVES FIND THE DISCREPANCEIS IN THEIR
WORK?
*******************************************
WHY, A SEPARATE GROUP OF
PEOPLE - INTERNAL AUDITORS?
83. 83
THIS “ DISASSOCIATION” FROM THEIR
WORK IS NOT PRACTICALLY POSSIBLE
FOR BRANCHES AND DIVISIONS,
HENCE, A NEED FOR AN OUTSIDER
“ INTERNAL AUDITOR “
87. rravindrakumar@gmail.com 87
“The day when you will
finish your learning,
it will be the day when you
will finish your earnings.”
“The day when you will
finish your learning,
it will be the day when you
will finish your earnings.”
90. 90
R. Ravindra KumarR. Ravindra Kumar
Regional Manager
LIC OF INDIA
Gandhinagar Inspection Centre
rravindrakumar
rravindrakumar
rravindrakumar.mop
+91 9726351246 Only Or
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