Money Talks – Don’t Let It Walk – Prevent & Detect Cash Fraud

Learning Objectives

• To recognize different fraud schemes involving cash and the risk of each occurring
• To identify the process by which cash fraud is committed and the conditions that must exist for it to be successful
• To perform an objective and effective risk assessment to identify control deficiencies
• To identify controls effective for preventing cash fraud
• To understand techniques for detecting cash fraud that did occur

Course Description

Revenue and cash receipts are two critical areas that require strong controls to prevent intentional fraud or unintentional misstatements. While there is well-publicized fraud in these areas in larger companies, it also occurs, and can even be more likely to occur, in smaller businesses and not-for-profit entities. A sound system of internal control is needed to help prevent fraudulent activities and reporting related to the revenue and cash receipts cycle.

According to the 2020 Report to the Nations, published by the ACFE, three of the five asset misappropriation schemes presenting the greatest risk involve the misappropriation of cash. They are:

• Check and payment tampering 
• Cash larceny 
• Payroll

A deficiency in internal control that prevents an entity from protecting its cash is putting that entity’s existence in jeopardy.  It is the management’s responsibility to develop, implement, and maintain controls to protect the entity’s assets from misappropriation as well as to otherwise achieve management objectives.  In addition, regardless of the actual relationship or the service performed by a CPA for a client, in many cases, a client will hold the CPA responsible for the detection of fraud, and many even hold the CPA liable for fraud subsequently detected by others.

This Online CPE webinar on Auditing course describes the most common types of fraud schemes used to misappropriate cash, including:

• How Frauds are committed
• The conditions under which fraud will be successful
• The impact on various financial statement components  
• Identifying the signs that may be indicators of fraud and the controls that may be effective for

You may be interested in Certification in Internal Audit Leading Practices.

Overview

• Fraud Involving Cash

  4 mins
• Fraudulent disbursements

  10 mins
• Most common type of fraud affecting small businesses

  12 mins
• Payroll

  14 mins
• Anti-Fraud Control Policies and Procedures

  16 mins
• Job performance issues experienced by fraud perpetrators

  26 mins
• The characteristics of Fraud

  35 mins
• Supervising as a challenging task

  49 mins
• Suggested internal control enhancements

  61 mins
• Enhancing communication among departments to verify legitimacy of travel

  71 mins
• Detection opportunities

  85 mins