Mitigate Fraud Risk
with Effective Internal Controls

SESSION 1: Fraud Risks

Background

• Fraud Explained: Definitions
• Fraud Statistics
• Why is fraud such a serious issue?
• ACFE Fraud Survey Results
• The Cost of Fraud
• Who commits fraud?
• Profile of a Fraudster
• Trends and Statistics regarding Detected Fraud
• Why fraud is probably being perpetrated now in your organisation?

Evaluating the Fraud Risks

• E & Y 13^th Global Fraud Risk Survey Results
• Fraud Risk Management Process
• Managing the Business Risk of Fraud
• Fraud Risk Management Programme should be in Place
• Fraud Risk Exposure should be Assessed
• Prevention Techniques to Avoid Potential Fraud Risk Events
• Detection Techniques should be Established
• A Reporting Process should be in Place
• A Coordinated Approach to Investigation and Corrective Action
• Building a Picture of the Major Fraud Risks
• Supplier and Outsourcing Fraud
• Fraud Risk Matrix
• Fraud Scenarios
• Fraud Risk Register Example
• Fraud Risk Questionnaire
• Generic Risk Factors
• Specific Risk
• Design of Controls to Prevent Fraud
• Physical and Logical Access
• Job Descriptions
• Accounting Reconciliations
• Supervision  

The IT Fraud Risks

• Computer Fraud Paper
• Computer Fraud Prevention
• E-Commerce – The key fraud risks and steps to take to mitigate them
• Internet and Intranet – The fraud risks
• Preventing Internet Fraud Paper
• IT Security – How to evaluate effectiveness and influence change?
• Adoption and Enforcement of Information Security Standards
• Segregation of Duties – The Dangers and the Practical Solutions
• How to detect IT fraud?

Identity Fraud

• Identity Fraud – The Fastest Growing Fraud Risk
• Identity Fraud – Fraud Advisory Panel Paper
• Identity Fraud Examples
• How to protect your business?

The Risk of Corruption

• Corruption Causes
• Corruption Indicators
• Fraud Red Flags
• Procurement Fraud Risks
• The Issues to Look For
• Bid Rigging – The issues to look for

SESSION 2: Developing a Fraud Prevention Process

Fraud Mitigation

• How to evaluate fraud risk mitigation?
• Why controls may not protect you?
• Putting Yourself in the Mind of the Fraudster
• Examination of Typical Controls in Place to Mitigate the Risks
• Risk Exposures
• Identifying the Vulnerable Areas

Procurement Fraud

• Tendering and Bidding
• Common Indicators
• Supplier and Outsourcing Fraud
• Procurement and Inventory Fraud Risks
• A Procurement Fraud Checklist will be Provided

Fraud Indicators

• The Top 30 Fraud Indicators
• How to spot the danger signals?
• Fraud Indicators – Fraud Advisory Panel Paper
• Developing a Toolkit for Identifying Possible Frauds
• An Auditor’s Fraud Toolkit will be Provided

Implementing a Best Practice Fraud Prevention Process

• CIMA Fraud Risk Management Guidance
• Introducing Effective Anti-fraud Policies
• Creating a Fraud Consciousness Loop
• Development of a Fraud Awareness Training Programme
• Communicating Standards of Expected Behaviour /Ethics
• The Need for Strong and Consistent Action When Fraud is Suspected
• Electronic Data and Asset Protection
• Fraud Response Plans Paper
• Anti Money Laundering – issues and requirements
• Money Laundering Paper in the Pack
• The Relationship between Fraud, Risk and Control
• The Roles, Responsibilities and Liabilities of Auditors, Management, Specialists and Others

SESSION 3: The Link between Fraud Prevention and Detection

Aiming for a Cost-effective Balance between Prevention and Detection

• Use of Management Check-lists
• The Need to be Able to Think like a Fraudster – To be able to prevent it
• Company Policy on Consequences of Committing Fraud
• Facilitation of Whistle Blowing
• Whistle Blowing Policy
• Pros and Cons of External Hot-lines
• Use of Specialists to Aid Detection and Investigation
• Preparing and Implementing Fraud Contingency Plans
• How to ensure fraud investigation is always given top priority?
• Use of Successful Fraud Investigation as a Moral Deterrent
• Managing the External Coverage of Proven Fraud

The Assurance Role regarding Fraud

• Prevention and Investigation
• Should Detection be an IA role?
• The IIA States currently Detection is not an IA role
• What should IA do to aid detection?

SESSION 4: Fraud Detection and Legal Issues

Data Mining as a Fraud Detection Tool

• Fraud Detection Basics Paper
• Fraud Profiling – How to target the right systems?
• GTAG 13 Fraud Prevention and Detection in the Automated World
• Data Mining Paper
• Risk Scoring
• Fraud Risk Prioritisation
• How to get the information you need?
• The Use of Internal Databases
• Demonstration of External Databases
• Data Validation
• Automated Fraud Detection
• How to put the techniques into use in your organisation?
• Audit Software – The tools available
• Practical Uses of Data Mining and the Results Achievable

The Legal Aspects                                                      

• The Need to Stay within the Law
• The Legal Implications
• When to bring the lawyers in?
• How to protect your work from disclosure? – legal privilege
• How to ensure that evidence is admissible?
• Search and Seizure Orders
• Civil vs. Criminal Action
• Bribery Act and the Implications for GCC Businesses
• Gifts and Hospitality Guidance
• How to recover stolen assets? – Making sure the criminal does not profit
• How to handle disciplinary proceedings?
• Employers and Employees Rights

What to do when you suspect fraud?                                                                                                                             

• How to react when fraud is suspected?
• How to decide who needs to be told?

SESSION: Fraud Investigation

Managing the Investigation

• The Need for thorough Planning
• Determining the Objectives of the Investigation
• Who should be involved? – What skills do you need?
• How to keep the investigation low-profile?
• Conducting Fraud Investigations Guidance
• Research – What information can lawfully be obtained?
• What information is available and can be used?
• Forensic Evidence and How to obtain it
• Collating Information and Maintaining the Chain of Evidence
• Knowing When to Suspend or Dismiss Employees
• Fraud Investigation Report Template will be Provided

Interviewing Suspects and Witnesses

• Setting the Scene – choice of venue, etc.
• Do you know your legal authority for conducting interviews?
• Can you use deception in interviews?
• How do you avoid breaching the employees’ rights under law?
• 47 Tips for Fraud Interviews
• Planning the Interview – do’s and don’ts
• Fraud Interview – The 10 Steps
• How to keep in control?
• How to tell if someone is lying?

Communicating the Results

• When and how to inform top management?
• When to inform regulators / the police / etc?
• Managing External Coverage
• Dealing with the Media / Stakeholders
• The Use of Successful Fraud Investigation as a Moral Deterrent
• Rebuilding Damaged Relationships