Fraud: Practical Approaches To Prevention & Detection

Learning Objectives

• To discuss the various means by which fraud is committed and how to determine when an entity is susceptible to specific fraud schemes
• To identify profiles of individuals committing fraud for different reasons, why they commit fraud, and the most effective preventive approaches for each type
• To identify general control activities that may reduce an entity’s susceptibility to fraud and those specific controls that may prevent a specific scheme from occurring
• To develop a holistic approach to establishing and enforcing control activities such that they can be effective without giving employees the feeling that they are watched or are not trusted.

Course Description

Fraud potentially affects almost every organization to some degree and, regardless of the type or level of service a CPA is engaged to provide, clients, financial statement users, and others consider the detection of fraud to be the accountant’s responsibility. Employee fraud is a particular problem and when it is detected by the client, it is not unusual for that client to initiate some action against the CPA.

This online CPE webinar for CPAs explores fraud by identifying the characteristics of different types of fraud perpetrators and the types of controls that might be most effective for each type.  

Each key concept will be reinforced by referring to the facts in various actual cases and evaluating the types of controls that might have prevented the fraud from occurring, what types of controls might have detected the fraud, and the nature of audit procedures that might also be effective for detection.

Key topics covered in this Auditing CPE webinar: 

• Typical fraud schemes for various types of entities
• The characteristics and components of an effective internal control system using the COSO model as a guide
• Profiles of fraud perpetrators and the types of controls most likely to be effective for each
• Designing control procedures to enhance an entity’s atmosphere and reduce the likelihood of fraud
• Designing control procedures to address specific fraud schemes

Overview

• The Nature of Fraud

  8 mins
• How is it committed?

  13 mins
• Applied to Accounts Receivable Lapping

  29 mins
• The Characteristics of Fraud

  46 mins
• Common Rationalizations for Committing Fraud

  50 mins
• How do Perpetrators Rationalize Their Frauds?

  71 mins
• Honest Crook

  82 mins
• Red Flags

  101 mins
• Fraudulent Disbursement

  113 mins
• Obtaining & Documenting an Understanding of Existing controls

  120 mins
• Evaluating Segregation of Duties

  143 mins
• Marginally Effective Controls

  163 mins