Top 10 Fraud Warning Signs MCTI Workshop. Stephanie O Cain, CPA Jackie F. Breland, CPA September 9, 2010
|
|
- Gladys Caroline Leonard
- 7 years ago
- Views:
Transcription
1 Top 10 Fraud Warning Signs MCTI Workshop Stephanie O Cain, CPA Jackie F. Breland, CPA September 9,
2 Today s Outline Why fraud occurs, why you should care and 10 financial warning signs Internal control discussion Fraud case studies Types of fraud and tools you can implement to protect your municipality 2
3 Key Message Fraud can, and most likely will, happen to your municipality at some point. Analyze your municipality for fraud potentials Implement 3 prevention tools upon returning to your office 3
4 Why Does Fraud Occur? Today s employee environment: Rising interest rates Floating home mortgages Increasing gas prices Rising personal debt and less personal savings Cost of health care 4
5 Why does Fraud Occur Today s business environment: Organized and professional fraud rings are becoming more prevalent and more sophisticated Cyber-crime advances make it possible to compromise large quantities of data Desktop publishing makes counterfeiting checks relatively cheap and easy 5
6 Why Does Fraud Occur? 6
7 Why Does Fraud Occur? Incentive what drives an employee to commit fraud Opportunity this is created from too much trust, poor internal controls, lack of supervision, and no financial audit by independent CPAs Rationalization perpetrators of fraud convince themselves that they are not stealing 7
8 Who Commits Fraud? Who are the internal perpetrators? Why they do it? Disgruntled employees Stressed-out employees Employees who live above their means Employees who never take a vacation Employees experiencing financial difficulties Employees with drug problems Employees with gambling problems 8
9 Who Commits Fraud? Who are the external perpetrators? Vendors who intentionally double bill Vendors who intentionally over bill Fraud rings that target various businesses Fraud rings that target identity theft 9
10 Why Municipalities Should Care About Fraud Potential impact from fraud: Financial loss Reputation Damaged relationships Loss of integrity with taxpayers Negative publicity Damaged employee morale 10
11 Why Municipalities Should Care About Fraud Estimated annual cost of fraud in U.S $652 billion was estimated to be lost to fraud in 2006 by the Assoc. of Certified Fraud Examiners (for all organizations) Government sector cases were 10% of the total reported to ACFE In the government sector, billing schemes and non-cash theft were the most commonly reported forms of fraud 11
12 Top 10 Financial Warning Signs of Fraud 1. Unexplained variances between budgeted and actual amounts 2. Large liabilities related to unexpected contracts 3. Significant internal control issues reported by external auditors 4. Appearance of personnel living beyond their means 5. Abnormal changes in account balances 12
13 Top 10 Financial Warning Signs of Fraud 6. Unusual write-offs or other out of the ordinary transactions 7. Shortages in cash, investments or other assets 8. Complaints from taxpayers 9. Infrequent or late financial reports 10. Accounting staff is behind 3-4 months on preparation of monthly bank reconciliations 13
14 Internal Controls An In Depth Discussion Objectives of internal control COSO framework and recent guidance Fraud-specific internal controls Roles and responsibilities in an internal control system What internal controls can and cannot do 14
15 Objectives of Internal Control Safeguarding of assets Compliance with policies, procedures, laws and regulations Accomplishment of organizational objectives Reliability and integrity of information for financial reporting Economical and efficient use of resources 15
16 COSO Framework This is a continuous, integrated process. 16
17 COSO Key Concepts Internal control is a process. It is a means to an end, not the end in itself. Internal control is effected by people. It s not merely policy manuals and forms, but people at every level of an organization. 17
18 Fraud-Specific Internal Controls Two major types of internal controls = active and passive Active controls = seek to prevent fraud from occurring Passive controls = seek to deter fraud by significantly increasing the risk of discovery 18
19 Active Internal Controls Think of active controls like a sturdy padlock on a gate Examples: Segregation of duties Separation of functions Physical asset control Physical restraints (e.g., locked file cabinets) Document matching Signatures, PINs 19
20 Passive Internal Controls Passive internal controls seek to stop fraud from occurring indirectly through deterrence measures Can be economical and effective They create sufficient risk and make the would-be perpetrator think I don t want to go there! 20
21 Passive Internal Controls Examples: Audit trails Review processes and procedures Focused audits / Surprise audits Surveillance of key activities Rotation of key personnel 21
22 Fraud-Specific Internal Controls Fraud-specific internal control = system of special purpose processes and procedures designed for the primary purpose of preventing fraud Each city is different, with different needs. A city s internal control system must be custom designed to have the maximum effect upon fraud. 22
23 Roles and Responsibilities in an Internal Control System Everyone in a local government has responsibility for internal control. Management (Mayor / City Manager) Ownership of the system Tone at the top City Council Governance, guidance and oversight Can identify problems and intervene if management overrides internal controls 23
24 Roles and Responsibilities in an Internal Control System Other personnel / staff Should be explicit part of everyone s job description All personnel should be responsible for communicating upward problems in operations, noncompliance with code of conduct, policy violations or illegal actions Do you have a whistleblower policy in place? 24
25 Internal Controls: What They Can Do For a Municipality What internal control can do: Helps a municipality achieve its objectives and performance targets Prevents loss of resources Helps ensure reliable and accurate financial reporting Helps a municipality comply with laws and regulations 25
26 Internal Controls: What They Can t Do For a Municipality What internal control can t do: Change an inherently poor manager into a good one Ensure success or survival, due to possible shifts in government policies or economic conditions Provide absolute assurance Prevent collusion between employees 26
27 Fraud Case Studies Next, we will discuss specific fraud case studies. In each case, we will discuss: What fraud-specific internal controls might have prevented the fraud from occurring? How could they have detected the fraud sooner? 27
28 Review -- Why does Fraud Occur? The risk of external fraud is increasing due to new technologies Fraud rings, cyber-crime, desktop publishing The risk of internal fraud is increasing due to external pressures many employees are facing Rising interest rates, adjustable rate home mortgages, increasing gas prices, rising personal debt, cost of health care 28
29 Types of Fraud Asset Misappropriations Larceny, skimming, fraudulent disbursements, inventory, other assets Corruption Bid rigging, invoice kickbacks, conflict of interest Fraudulent Statements - Asset or revenue overstatement, fictitious revenues, improper asset valuation 29
30 Cash Misappropriations Fraudulent disbursements Causes organization to disburse funds through some trick or device. This is the most common form of fraud Larceny Cash is stolen after it is recorded on the municipalities books Skimming Cash is stolen before it is recorded on the municipalities books 30
31 Fraudulent Disbursements (Payment Fraud) Check tampering Counterfeit checks ACH schemes Expense reimbursement schemes Payroll schemes Vendor billing schemes 31
32 AFP s 2007 Payment Fraud Survey Association of Financial Professionals (AFP) Purpose of the survey Review type and frequency of payment fraud in 2006 Expose gaps in organizational defenses that could result in financial liability Determine whether new payment options are leading to new methods of fraud by criminals Promote awareness of protections organizations can take to guard against fraud 32
33 AFP s 2007 Payment Fraud Survey Payment fraud is on the rise % % % Checks were most often the vehicle for fraud with ACH second Check fraud is increasing in an environment of declining check volume Banks bear the greatest financial burden for payment fraud losses 33
34 AFP s 2007 Payment Fraud Survey Check Fraud Over 9 out of 10 that experienced payment fraud included check fraud Of the organizations that experienced check fraud 61% had altered payee names on checks issued 57% had counterfeit checks that had the organization s MICR line, but used another name 41% had lost, stolen or counterfeit employee pay checks 34
35 AFP s 2007 Payment Fraud Survey ACH Fraud The second most common payment fraud 35% of the organizations surveyed reported ACH debit fraud 24% of the fraudulent checks returned by positive pay were then presented as ACH debits 35
36 AFP s 2007 Payment Fraud Survey Organization losses due to: Internal fraud (i.e., employees) Accounts NOT reconciled timely or fraudulent items not returned timely Positive pay NOT implemented (positive, reverse or payee) The largest percentage of reported fraud was carried out by third parties not employees 36
37 AFP s 2007 Payment Fraud Survey Checks are now being imaged and the images are be exchanged and settled instead of the actual paper checks. Of those organizations that experienced check fraud, only 15% reported check image fraud. On the other hand, although over 1/3 of respondents use remote deposit, there were no reported incidents of fraud associated with this service. 37
38 Positive Pay = Single Best Tool for Check Fraud Prevention Positive Pay Traditional positive pay Reverse positive pay Teller positive pay Payee positive pay Positive pay implementation what s involved? 38
39 ACH Transactions Overall volume of ACH transactions is rising. Businesses still rely heavily on paper checks. Why use ACH instead of checks? Bank fees less expensive Less human time than printing, sorting, matching, mailing, etc. Supply cost less check cost, MICR toner, envelopes, postage Decrease in fraud opportunities 39
40 ACH Transactions Fraud Controls ACH blocks or filters on accounts Separate accounts for checks versus ACH transaction Separate accounts for ACH debits vs. ACH credits ACH pre-notes Due diligence when setting up the vendor on ACH 40
41 ACH Future ACH volume predicted to increase More fraud controls expected at the bank level (i.e. payee ACH positive pay) Universal Payment Identification Code (UPIC) Pay Pal concept for business to business transactions Looks and acts like a bank account without providing sensitive banking information Can be printed on invoices and displayed on internet STP Establishes standards for remittance information with payment enabling invoices to be reconciled without manual intervention 41
42 Uniform Commercial Code UCC Regulations 3 & 4 Ordinary Care Comparative Negligence Ordinary care = adequate internal controls for disbursements process, check stock storage, check stock security, timely reporting and timely bank reconciliations See list of check stock security features 42
43 Vendor Verification Google for address, phone number and other verification Use e-services TIN lookup Process should have the form being submitted by one person and verified by another. to make sure not a residence Have a No TIN, No Payment Policy 43
44 Vendor Verification Minimize Vendor Record access to keep from changing the address then changing it back. Review all changes via report weekly or monthly Review formally inactivated vendor files for no recent activity 44
45 Top 10 Payment Fraud Protections 1. Payee Positive Pay 2. ACH Protections 3. Payroll direct deposit and/or payroll card programs 4. Dual security administrators for electronic payments 5. Daily reconciliation of bank accounts (electronic and check) 45
46 Top 10 Payment Fraud Protections 6. Security features on checks 7. Vendor Verification 8. Segregation of disbursement and reconciliation duties 9. Controlled access to payments processing areas 10. Strict policy of employees NOT sharing passwords 46
47 Duplicate Payments Duplicate Payment Errors and Fraud Consider outsourcing the disbursement process Consider cheap software for verifying against database Eliminate rush checks Use data analysis products 47
48 Travel & Entertainment Usually one of the easiest places for an employee to commit fraud Fraud sometimes starts with T&E then spreads to other areas Have a written T&E policy Verify Expenses mathematically, against the policy, against original receipts and against other documentation 48
49 Travel & Entertainment Consider performing annual check by reviewing reports for an entire year for a few employees. Look for duplicates and patterns Consider eliminating cash advances Consider verifying mileage with mapquest, etc. 49
50 Identity Theft Protect or eliminate paper information Shred everything Keep files from the public and accessible only to employees on a need-to-know basis Gramm-Leach-Bliley Act does not apply to nonfinancial institutions t.shtm 50
51 Purchasing Cards GFO recommends that municipalities explore the use of purchasing cards to improve the efficiency of their purchasing procedures. P-cards, T&E cards, One Cards Benefits to Vendor Expedited payments Reduced paperwork Lowered risk of nonpayment (or late payment) 51
52 Purchasing Cards Benefits to municipality: Simplified purchasing process Lower transaction processing costs Ability to set and control dollar limits Earn cash rebates for municipality Import file into AP system with GL codes 1099 reporting assistance Earn float on funds for 30 days 52
53 Purchasing Cards Other Benefits Some have employee fraud protection Municipality logo printed on card Identify vendors for you that accept card payment Department cards versus individual Built in approval hierarchy Ghost accounts 53
54 Purchasing Cards 3 Levels of Data Level 1 - basic level same as personal cc Level 2 includes sales tax Level 3 includes line item detail all information above plus, product code, item description, item quantity, units and price Not all vendors send level 2 and 3, but this can be negotiated with the vendors 54
55 15 Other Payment Fraud Protections 1. Financial institution should provide multifactor identification when using on-line banking services 2. Leverage ACH and on-line banking security (approval process, etc.) 3. Use Purchasing cards 4. Document policies and procedures including flow charts 5. Use blank check stock 55
56 15 Other Payment Fraud Protections 6. Perform audits of payment process 7. When designing controls use the old auditor trick where are the weaknesses? If someone was to steal from you, how would they do it? Let them tell you the areas that need to be strengthened 8. Do not return check to the person who requested 9. Don t automatically deposit every small dollar check that is received 56
57 15 Other Payment Fraud Protections 10. Separate accounts for checks and electronic payments 11. Further separate ACH debit and credits. 12. Post No Checks restrictions on electronic payment accounts 13. Do not give out bank account numbers without verifying that it is an active vendor and that it s a legitimate call 57
58 15 Other Payment Fraud Protections 14. Create a master account listing of all Accounts Signers Account controls Review for updates Keep secure 15. Close any inactive accounts and shred remaining check stock 58
59 Resources Association for Certified Fraud Examiners (ACFE) American Institute of Certified Public Accountants (AICPA) Association for Financial Professionals (AFP) Governmental Financial Officer Association (GFOA) Fraud 101: Techniques and Strategies for Detection by Silverstone and Davia
60 Resources Mary S. Schaeffer multiple books, articles, newsletters with practical suggestions Accounts Payable and Sarbanes-Oxley: Strengthening Your Internal Controls 2006 New Payment World: A Manager s Guide to Creating an Efficient Payment Process mary@maryschaeffer.com 60
61 Key Messages Fraud can, and most likely will, happen to your municipality at some point. Analyze your municipality for fraud potentials Implement 3 prevention tools upon returning to your office 61
62 Top 10 Fraud Warning Signs Questions and Answers Can we address any questions for you today? contact information: 62
Accounts Payable Best Practices
Accounts Payable Best Practices Presented by: Eddy Castaneda, CPA, MBA Accounts Payable Best Practices Top Practices AP Top Practices Document your current AP procedures Can identify overlapping work Can
More informationInternal Controls and Fraud Detection & Prevention. Harold Monk and Jennifer Christensen
Internal Controls and Fraud Detection & Prevention Harold Monk and Jennifer Christensen 1 Common Fraud Statements Everyone in government has an honest and charitable heart. It may happen other places,
More informationPayments Fraud Best Practices
Stephen W. Markwell Disbursements Product Executive J.P. Morgan Pamela R. Malmos Director Finance, Treasury Operations ConAgra Foods, Inc. Fraud Prevention Laura Howley, CTP Director, Global Treasury Operations
More informationAvoiding Theft in Your Nonprofit Ohio Attorney General Mike DeWine
Avoiding Theft in Your Nonprofit Ohio Attorney General Mike DeWine 1 Dear Nonprofit Leader, The single greatest asset of a nonprofit is arguably its reputation. When theft or misappropriation of assets
More informationFinancial Transactions and Fraud Schemes
Financial Transactions and Fraud Schemes Asset Misappropriation: Fraudulent Disbursements Fraudulent Disbursement Schemes Register disbursement schemes Check tampering schemes Payroll schemes Billing schemes
More informationFraud and internal controls, Part 3: Internal fraud schemes
Fraud and internal controls, Part 3: Internal fraud schemes By EVERETT COLBY, CFE, FCGA This is the third and final article in a series by Mr. Colby on Fraud and internal controls to be carried on PD Net.
More informationLGMA Qld Governance and Corporate Planning Village Forum
www.pwc.com.au Fraud Risk Management Fraud Risk Assessments LGMA Qld Governance and Corporate Planning Village Forum March 2015 Agenda Introductions Fraud Risk Management Fraud Statistics s Global Economic
More informationFRAUD RISK ASSESSMENT
FRAUD RISK ASSESSMENT All agencies are subject to fraud risks and need to complete a fraud risk assessment for their agency at least every biennium. A detailed fraud assessment needs to be performed by
More informationOffice of the Inspector General
Office of the Inspector General Commonwealth of Massachusetts Gregory W. Sullivan Inspector General Guide to Developing and Implementing Fraud Prevention Programs Second Edition American Recovery and Reinvestment
More informationHow To Prevent Fraud On A Credit Card
Fraud Detection and Prevention Financial Management Advisory Council August 28, 2014 Sarah Mahugh, CPA, MBA Financial Audit Audit Manager Overview Fraud trends Fraud Risks and internal controls Case Studies
More informationIs There Anyway to Prevent Fraud? Bill Gady, CGA CPA Partner
Is There Anyway to Prevent Fraud? Bill Gady, CGA CPA Partner Learning Objectives: Understand how fraud can occur Learn procedures you can implement to prevent fraud Learn how to detect fraud Common Situations
More informationChecks and Balances Internal Controls. West Virginia State Auditor s Office Chief Inspector Division
Checks and Balances Internal Controls West Virginia State Auditor s Office Chief Inspector Division POP QUIZ Internal Controls Internal Controls The auditor will test the effectiveness of your internal
More informationFraud Prevention: The Prevention and Detection of Fraud Begins with You
Fraud Prevention: The Prevention and Detection of Fraud Begins with You Takeaways What is fraud? Definition Facts Four factors Fraud risk assessment Four evaluation criteria Common fraud schemes Case studies
More informationIntroductions, Course Outline, and Other Administration Issues. Ed Ferrara, MSIA, CISSP eferrara@forrester.com. Copyright 2015 Edward S.
MIS 520 Week 2 Fraud Detection & Prevention Introductions, Course Outline, and Other Administration Issues Ed Ferrara, MSIA, CISSP eferrara@forrester.com Fraud Awareness & Internal Controls Awareness Internal
More informationFinancial Services Group
Fraud Detection and Prevention Presented by: Carrie Kennedy, CPA, Partner Anthony Porter, CPA, Manager 1 The material appearing in this presentation is for informational purposes only and should not be
More informationOffice of the Inspector General
Office of the Inspector General Commonwealth of Massachusetts Gregory W. Sullivan Inspector General Guide to Developing and Implementing Fraud Prevention Programs April 2005 Dear Public Officials: April
More informationFORENSIC ACCOUNTING What s in it for me? Albany, NY June 14, 2011
FORENSIC ACCOUNTING What s in it for me? Albany, NY June 14, 2011 Presented by Gary J. Cassiello, CPA, ABV, CFF garyc@jgspc.com 845-692-9500 Today s Outline Why is Forensic Accounting important? Executive
More informationMEMORANDUM. Municipal Officials. From: Karen Horn, Director, Public Policy and Advocacy; and Abby Friedman, Director, Municipal Assistance Center
MEMORANDUM To: Municipal Officials From: Karen Horn, Director, Public Policy and Advocacy; and Abby Friedman, Director, Municipal Assistance Center 89 Main Street, Suite 4 Montpelier, Vermont 05602-2948
More informationPresented by: Donald F. Conway, CPA Mercadien, P.C., Certified Public Accountants. Forensic Accounting, Political Corruption & White Collar Offenses
Presented by: Donald F. Conway, CPA Mercadien, P.C., Certified Public Accountants Forensic Accounting, Political Corruption & White Collar Offenses Defining Fraud The dictionary defines fraud as a deception
More informationFundamentals of Computer and Internet Fraud WORLD HEADQUARTERS THE GREGOR BUILDING 716 WEST AVE AUSTIN, TX 78701-2727 USA
Fundamentals of Computer and Internet Fraud WORLD HEADQUARTERS THE GREGOR BUILDING 716 WEST AVE AUSTIN, TX 78701-2727 USA II. THE USE OF COMPUTERS IN OCCUPATIONAL FRAUD Occupational fraud refers to the
More informationCombating Fraud on Corporate Checking Accounts
Combating Fraud on Corporate Checking Accounts A Bank of America White Paper One in a series of white papers prepared by Bank of America on key issues of interest to corporate treasurers. The information
More informationFraud: Real Stories, Real People, Real Impact
Fraud: Real Stories, Real People, Real Impact Chris Harper, CPA, MBA Senior Manager Types of Fraud Asset misappropriation Fraudulent financial reporting Identity theft Detection Skills The Fraud Triangle
More informationTypes of Fraud and Recent Cases. Developing an Effective Anti-fraud Program from the Top Down
Types of and Recent Cases Developing an Effective Anti-fraud Program from the Top Down 1 Types of and Recent Cases Chris Grippa (404-817-5945) FIDS Senior Manager with Ernst & Young LLP Works with clients
More informationUnderstanding Business Fraud Presenter Paul A. Rodrigues, CPA, MST, CFE, CFF, Principal Presenter David G Friedman, CPA, CFF, CFE, Partner
Understanding Business Fraud Presenter Paul A. Rodrigues, CPA, MST, CFE, CFF, Principal Presenter David G Friedman, CPA, CFF, CFE, Partner Check Fraud Hand-Out Despite the heavy use of credit cards and
More informationFraud Awareness Training
UT System Administration General Compliance Training Fall 2014 This training will take approximately 20 minutes to complete Objectives What is occupational fraud Common myths about fraud Conditions for
More informationInternal Controls for Small Organizations. Jen Parker, CPA Director of Accounting & Finance US Youth Soccer
Internal Controls for Small Organizations Jen Parker, CPA Director of Accounting & Finance US Youth Soccer Fraud Statistics: The following statistics about fraud and white collar crime are from the Association
More informationConversion. Concealment methods. Example #1: Skimming. Example #2: Skimming. 2015 GASBO Conference. Thomas Buckhoff, Ph.D.
Top Five Employee Fraud Schemes Forensic Solutions, LLC Forensic accounting and litigation support services Presented by: Thomas Buckhoff, Ph.D., CPA/CFF, CFE Fraudsters love cash! Cash is the asset most
More informationCentre for Corporate Governance. Sample listing of fraud schemes
Centre for Corporate Governance Sample listing of fraud schemes Sample listing of fraud schemes The following listing of possible fraud schemes can be utilized by management and auditors to assist in identifying
More informationFraud Control Theory
13 Fraud Control Theory Using a variation of a saying from the 1960s, fraud happens. Like all costs of doing business, fraud must be managed. Management must recognize that people commit fraudulent acts
More informationChapter 15 Auditing the Expenditure Cycle
Chapter 15 Auditing the Expenditure Cycle Expenditure cycle consists of activities related to the acquisition of and payment for plant assets and goods and services. Two major transaction classes: 1 purchases
More informationA DOZEN IDEAS FOR SMALL BUSINESS FRAUD PREVENTION
A DOZEN IDEAS FOR SMALL BUSINESS FRAUD PREVENTION Any discussion of fraud can be a difficult one because most individuals value being a trusted member of any organization and, in most cases, key employees
More informationFRAUD PREVENTION STRATEGIES FOR HEALTH CARE A FORENSIC ACCOUNTANT S PERSPECTIVE
FRAUD PREVENTION STRATEGIES FOR HEALTH CARE A FORENSIC ACCOUNTANT S PERSPECTIVE CPAs & ADVISORS experience reach // S. Todd Burchett, CPA, ABV, ASA, CFF, CFE Partner tburchett@bkd.com 210.268.1932 AGENDA
More informationMEMORANDUM INTERNAL CONTROL REQUIREMENTS FOR NON-PROFITS
DIVISION OF CHILD CARE AND EARLY CHILDHOOD EDUCATION HEALTH AND NUTRITION UNIT P O BOX 1437, SLOT S 155 501-320-8982 FAX: 501-682-2334 TDD: 501-682-1550 TO: NON-PROFIT INSTITUTIONS FROM: HEALTH AND NUTRITION
More informationFraud Protection, You and Your Bank
Fraud Protection, You and Your Bank Maximize your chances to minimize your losses Presentation for Missouri GFOA April 2011 By: Terry Endres, VP, Government Treasury Solutions Phone: 314-466-6774 Terry.m.endres@baml.com
More informationINTERNAL CONTROL QUESTIONNAIRE OFFICE OF INTERNAL AUDIT UNIVERSITY OF THE VIRGIN ISLANDS
Cabinet Member or Representative responsible for completing this form: INSTRUCTIONS FOR COMPLETING THIS FORM: Answer each question by placing an X in the either the Yes, No,, or Applicable () column. Provide
More informationTable of Contents The Revenue Division s Cash Controls Report Number 2007-01
i Table of Contents The Revenue Division s Cash Controls Report Number 2007-01 EXECUTIVE SUMMARY iii PRELIMINARY Introduction 1 Objective 1 Audit Scope 1 Citywide Ramification 2 CONCLUSIONS 1. REVENUE
More informationHow To Prevent Fraud In The United States
Fraud Detection & Prevention for Accounts Payable! Presented by Larry Holmes! Accounts Payable With Fraud! Paying for goods and services that were not received! Paying inflated prices for goods and services!
More information716 West Ave Austin, TX 78701-2727 USA
Fundamentals of Computer and Internet Fraud GLOBAL Headquarters the gregor building 716 West Ave Austin, TX 78701-2727 USA II. THE USE OF COMPUTERS IN OCCUPATIONAL FRAUD Occupational fraud refers to the
More information5 Important Controls to Mitigate Employee Fraud
5 Important Controls to Mitigate Employee Fraud LMCIT WEBINAR : FEBRUARY 10, 2015 IN PARTNERSHIP WITH EIDE BAILLY Presenter: Jason Olson, MBA, CPA/CFF, CFE, CFI Presentation Disclaimer These seminar materials
More informationB Resource Guide: Implementing Financial Controls
What s in this Guide: I. Definition: What are Financial Controls? II. Why Do You Need Financial Controls? III. Best Practices: Financial Controls to Consider I. Definition: What are Financial Controls?
More informationELECTRONIC FUND TRANSFER AGREEMENT AND DISCLOSURE PERSONAL CHECK and/or ATM CARD
ELECTRONIC FUND TRANSFER AGREEMENT AND DISCLOSURE PERSONAL CHECK and/or ATM CARD This agreement and disclosure applies to payment orders and funds transfers governed by the Electronic Fund Transfer Act.
More informationCash, Petty Cash, Change Funds, and Credit Cards
CASH As public servants, it is our responsibility to safeguard taxpayer s dollars while adhering to laws and regulations governing processes over cash handling. Internal controls over cash are necessary
More informationFraud Awareness and Prevention Program Report
Internal Audit Department Fraud Awareness and Prevention Program Report Project 2009-263 A Review of Fraud Awareness, Prevention, Detection and Risk Mitigation Practices in Landfill Operations, Central
More informationCAPITAL PERSPECTIVES DECEMBER 2012
CAPITAL PERSPECTIVES DECEMBER 2012 MITIGATING PAYMENT FRAUD RISK: IT S A WAR ON TWO FRONTS Payment fraud continues to be one of the biggest risk management challenges facing corporate treasury managers
More informationMaking Your Fraud Vision 20 / 20. Thomas R. Strause, CIA, CFE, CBA, CISA, CFSA, CICA Partner FOS tstrause@fosaudit.
Making Your Fraud Vision 20 / 20 Thomas R. Strause, CIA, CFE, CBA, CISA, CFSA, CICA Partner tstrause@fosaudit.com 610-603-5603 Topics to be Covered + Summary of Fraud Statistics ACFE 2014 Report + Current
More informationINTRODUCTION TO FRAUD EXAMINATION
INTRODUCTION TO FRAUD EXAMINATION GLOBAL HEADQUARTERS THE GREGOR BUILDING 716 WEST AVE AUSTIN, TX 78701-2727 USA VII. FRAUDULENT FINANCIAL TRANSACTIONS: FRAUD SCHEMES Introduction Fraud can be committed
More information2/27/2014. Introduction to Financial Management Best Practices. Learning Objectives. Donors don t give to groups they don t trust 1
Introduction to Financial Management Best Practices P R E S E N T E D B Y G L E N D A Y. H I C K S, C P A F O R P A R E N T T O P A R E N T O F G E O R G I A, I N C. R E G I O N 3 P T A C F E B R U A R
More informationTorn Identity: Preventing New Forms of Corporate Identity Theft
Torn Identity: Preventing New Forms of Corporate Identity Theft Bonnie J. Hertz, CTP Cash Manager North Pacific Group, Inc. Greg Hansen VP, Product Management Wells Fargo Bank 1 Agenda Overview of fraud
More informationThe policy and procedural guidelines contained in this handbook are designed to:
BASIC POLICY STATEMENT The Mikva Challenge is committed to responsible financial management. The entire organization including the board of directors, administrators, and staff will work together to make
More informationPhishing for Fraud: Don't Let your Company Get Hooked!
Phishing for Fraud: Don't Let your Company Get Hooked! March 2009 Approved for 1 CTP/CCM recertification credit by the Association for Financial Professionals 1 Today s Speakers: Joe Potuzak is Senior
More informationFinancial Transactions and Fraud Schemes
Financial Transactions and Fraud Schemes Asset Misappropriation: Cash Receipts 2016 Association of Certified Fraud Examiners, Inc. Fraud Tree 2016 Association of Certified Fraud Examiners, Inc. 2 of 27
More informationSteven Boyer Vice-President, Gallagher Bassett Services Inc.
Employee Dishonesty and Fraud Motive, Rationale & Opportunity Steven Boyer Vice-President, Gallagher Bassett Services Inc. Randall Wilson, CPA/CFF, CFE, Cr.FA Partner, National Practice Director Fraud
More informationRemote Deposit Capture: The Future of Check Processing BB&T Webinar March 28, 2007 Q&A Session
Remote Deposit Capture: The Future of Check Processing BB&T Webinar March 28, 2007 Q&A Session Q. What types of checks are eligible for remote deposit capture? A. All checks drawn on US banks are eligible
More informationFraud Issues in Local Government
Fraud Issues in Local Government CMTA Annual Conference April 24, 2009 Justin Williams, CPA, CVA Fraud Triangle In normal circumstances, all three factors must be present Pressures Opportunity Rationalization
More informationTOWN OF BANFF POLICY. Corporate Credit Card Policy ==========================================================================
TOWN OF BANFF POLICY POLICY # POLICY TITLE AUTHORITY AUTHOR C092 Corporate Credit Card Policy COU02-280 Maier/CORP ========================================================================== 1. POLICY STATEMENT
More informationInternal Control Requirements December 11, 2002
1 Internal Control Requirements December 11, 2002 Internal controls are mechanisms, policies, and procedures used to minimize and monitor operational risks. In order to deter employees and/or members from
More informationSix Financial Oversight Strategies for Nonprofits
Six Financial Oversight Strategies for Nonprofits You Inspire Us! 1) Greet your new friends! 2) Surf the binder and resources 3) Enjoy The Hope Center 4) Watch for MORE resources in 7 days: ECFA.org/Content/Six-Financial-Oversight-Strategiesfor-Nonprofits
More informationCHECK FRAUD. Federal Reserve System
CHECK FRAUD Federal Reserve System Check fraud affects every financial institution, every business, and every individual throughout the United States and around the world. Industry sources estimate that
More informationINTERNAL AUDIT REPORT K-CASH PROCESSES AND INTERNAL CONTROLS
INTERNAL AUDIT REPORT K-CASH PROCESSES AND INTERNAL CONTROLS November 28, 2011 Audit Report Number 12-01 Issued by: Kennesaw State University Internal Audit Department Audit Team Clayton B. Dean, MBA,
More informationACCOUNTING AND FINANCIAL REPORTING REGULATION MANUAL
ACCOUNTING AND FINANCIAL REPORTING REGULATION MANUAL STATE BOARD OF ACCOUNTS 302 West Washington Street Room E418 Indianapolis, Indiana 46204-2769 Issued January 2011 Revised April 2012 TABLE OF CONTENTS
More informationCash Flow Management: The Life of Your Business
Cash Flow Management: The Life of Your Business Brian S. Gottschalk CPA Partner GellerRagans Certified Public Accountants Advisors Cash Flow- defined Movement of money received and spent: the pattern of
More informationNONPROFIT FINANCIAL MANAGEMENT SELF ASSESSMENT TOOL
NONPROFIT FINANCIAL MANAGEMENT SELF ASSESSMENT TOOL I. Financial Planning/Budget Systems 1. Organization has a comprehensive annual budget which includes all sources and uses of funds for all aspects of
More informationFINANCIAL CONTROLS POLICIES AND PROCEDURES FOR SMALL NONPROFIT ORGANIZATIONS
By Cindy Cumfer NOTE: These policies and procedures are designed for small nonprofits that do not have an administrator with financial expertise. They are set up to divide the fiscal control roles between
More informationRED FLAGS OF FRAUD MAY 13, 2014 IIA AUSTIN CHAPTER
MAY 13, 2014 IIA AUSTIN CHAPTER 2014 by the Association of Certified Fraud Examiners, Inc. Revised: 3/26/14 No portion of this work may be reproduced or transmitted in any form or by any means electronic
More informationFINANCE COMMITTEE PROCEDURES. Audit Process. Cash Handling
1 FINANCE COMMITTEE PROCEDURES Audit Process 1. Internal audits are conducted once a year. 2. The bookkeeper will provide the following information: bank statements, prior year vouchers, and access to
More informationINTERNAL ACCOUNTING CONTROLS CHECKLIST FOR NTMA CHAPTERS
P R E C I S I O N INTERNAL ACCOUNTING CONTROLS CHECKLIST FOR NTMA CHAPTERS Presented at NTMA 2004 Annual Convention Palm Springs, CA February 2004 National Tooling & Machining Association 9300 Livingston
More information7/22/2014. From Treadway To the Cube (1987 2014) So, Who is COSO? What Does COSO Do?
From Treadway To the Cube (1987 2014) National Society of Accountants for Cooperatives (NSAC) CLAconnect.com Instructor: Ron Durkin, CPA/CFF, CFE, CIRA National Principal in Charge Fraud & Misconduct Investigations
More informationLeveraging Big Data to Mitigate Health Care Fraud Risk
Leveraging Big Data to Mitigate Health Care Fraud Risk Jeremy Clopton, CPA, CFE, ACDA Senior Managing Consultant BKD, LLP Forensics & Valuation Services Introduction Health Care Is Victimized by Fraud
More informationInternal Controls Best Practices
Internal Controls Best Practices This list includes the most common internal controls applied by small to medium sized businesses to their operations. It includes controls that apply to the processes most
More informationHow To Handle A Fraud At Psc
FRAUD POLICY Purpose and Background PSC is committed to the highest standards of moral and ethical behavior. The purpose of PSC s Fraud Policy is to foster an environment that promotes awareness to fraudulent
More informationTable of Contents: Chapter 2 Internal Control
Table of Contents: Chapter 2 Chapter 2... 2 2.1 Establishing an Effective System... 2 2.1.1 Sample Plan Elements... 5 2.1.2 Limitations of... 7 2.2 Approvals... 7 2.3 PCard... 7 2.4 Payroll... 7 2.5 Reconciliation
More informationSection 7 Internal Control Framework
Section 7 Internal Control Framework Contents Page 7.1 Internal Control and Risk Management... 3 7.1.1 Legislative Framework... 4 7.1.2 Accountability and Transparency... 13 7.2 Risk Management... 15 7.2.1
More informationGuidelines for Congregations Internal Control Best Practices
Guidelines for Congregations Internal Control Best Practices A resource provided by the Office of the Treasurer of the Evangelical Lutheran Church in America In order to exercise good stewardship and care
More informationAGA Kansas City Chapter Data Analytics & Continuous Monitoring
AGA Kansas City Chapter Data Analytics & Continuous Monitoring Agenda Market Overview & Drivers for Change Key challenges that organizations face Data Analytics What is data analytics and how can it help
More informationIntroduction to Fraud Examination. World Headquarters the gregor building 716 West Ave Austin, TX 78701-2727 USA
Introduction to Fraud Examination World Headquarters the gregor building 716 West Ave Austin, TX 78701-2727 USA VII. FRAUDULENT FINANCIAL TRANSACTIONS: FRAUD SCHEMES Introduction Fraud can be committed
More information2008 Report to the Nation
2008 Report to the Nation on Occupational Fraud & Abuse Letter from the President When the Association of Certified Fraud Examiners was founded 20 years ago, we knew that occupational fraud was a significant
More informationRecognizing It When You See It: What Fraud Looks Like in the Public Sector
Recognizing It When You See It: What Fraud Looks Like in the Public Sector QR Code Presenters: Fiona Chen, President, Fiona Chen Consulting Frank Crawford, President, Crawford & Associates P.C. Vicki Hellenbrand,
More informationAccounts Payable. Best Practices: Existing Control: Control Gap: Controls Evaluation and Gap Analysis. Purchasing
Accounts Payable Gap Analysis: POS identifies the following Best Practices as efficient and effective control processes for the above risk. Listed for comparison are the controls currently in place, if
More information1. SEGREGATION OF DUTIES IS ESSENTIAL
The way a church handles money can present a positive or negative witness. Churches need to be diligent in handling money to encourage integrity and positive Biblical stewardship. Every step should be
More informationFINANCIAL MANAGEMENT POLICIES AND PROCEDURES
FINANCIAL MANAGEMENT POLICIES AND PROCEDURES SAMPLE 1. GENERAL PURPOSE The purpose of these policies is to establish guidelines for developing financial goals and objectives, making financial decisions,
More informationCOSO Internal Control Integrated Framework (2013)
COSO Internal Control Integrated Framework (2013) The Committee of Sponsoring Organizations of the Treadway Commission (COSO) released its updated Internal Control Integrated Framework (2013 Framework)
More informationInternal Controls and Political Committees
Internal Controls and Political Committees Under the Federal Election Campaign Act (FECA) and the Commission s regulations all political committees are required to file accurate and complete disclosure
More informationGUIDE TO PROTECTING YOUR BUSINESS
GUIDE TO PROTECTING YOUR BUSINESS GT44GPBW As a small business owner, fraud is a significant threat to your business. According to a 2012 study by the Association of Certified Fraud Examiners, the smallest
More informationManual of Accounting Policies and Procedures Bridgewater State College Foundation Bridgewater Alumni Association
Manual of Accounting Policies and Procedures Bridgewater State College Foundation Bridgewater Alumni Association Table of Contents MANUAL OF 1 ACCOUNTING 1 POLICIES AND PROCEDURES 1 BRIDGEWATER STATE COLLEGE
More informationAuditing for Value in the Procure to Pay Cycle Dallas IIA Chapter. October 1, 2009
Auditing for Value in the Procure to Pay Cycle Dallas IIA Chapter October 1, 2009 Supply Chain Risk Overview * Today s Focus * Includes Working Capital benefits 1 2009 Protiviti Inc. An Equal Opportunity
More informationThe Practice of Internal Controls
Office of the New York State Comptroller Division of Local Government and School Accountability LOCAL GOVERNMENT MANAGEMENT GUIDE The Practice of Internal Controls Thomas P. DiNapoli State Comptroller
More informationby: Scott Baranowski, CIA
Community Bank Auditors Group A/P, Procurement and Credit Card Internal Controls June 4, 2014 by: Scott Baranowski, CIA MEMBER OF PKF NORTH AMERICA, AN ASSOCIATION OF LEGALLY INDEPENDENT FIRMS 2013 Wolf
More informationPerp Poetry. Fraud & Embezzlement: Lessons From the Trenches. Presented by. acumen insight. ideas attention reach. expertise depth agility talent
acumen insight Fraud & Embezzlement: Lessons From the Trenches ideas attention reach Presented by Angela Morelock, CPA, CFE, CFF, ABV, Certified Forensic Accountant www.bkdforensics.com expertise depth
More informationPreventing Fraud and Abuse of Public Funds: Local Governments Need to Do Better
Office of the State Comptroller Thomas P. DiNapoli State Comptroller Division of Local Government and School Accountability August 2010 Preventing Fraud and Abuse of Public Funds: Local Governments Need
More informationFraud and Role of Information Technology. September 2008
Fraud and Role of Information Technology September 2008 Agenda IT Value Proposition Slide 2 Prior Interpretations of Internal Control Structure Have Addressed Three Separate Parts Which Were Audited Somewhat
More informationOffice of the State Controller. Self-Assessment of Internal Controls. Purchasing/Accounts Payable Cycle. Objectives and Risks
Office of the State Controller Self-Assessment of Internal Controls Purchasing/Accounts Payable Cycle Objectives and Risks Agency Year-End Objectives All requests for goods and services are initiated and
More information10-1. Auditing Business Process. Objectives Understand the Auditing of the Enteties Business. Process
10-1 Auditing Business Process Auditing Business Process Objectives Understand the Auditing of the Enteties Business Process Identify the types of transactions in different Business Process Asses Control
More informationAccounting software & data
Accounting software & data Accounting software and data should reside at church or be webbased where the data base can be accessed by multiple users Multiple people should be trained on software Software
More informationMANAGEMENT AUDIT REPORT ACCOUNTS PAYABLE
MANAGEMENT AUDIT REPORT OF ACCOUNTS PAYABLE REPORT NO. 04-108 CITY OF ALBUQUERQUE OFFICE OF INTERNAL AUDIT AND INVESTIGATIONS of Accounts Payable Report No. 04-108 Executive Summary Background The Department
More informationCOMPLIANCE POLICY MANUAL
COMPLIANCE POLICY MANUAL FOREIGN CORRUPT PRACTICES ACT 07/24/2012 Policy Number 16-100 SUBJECT: FOREIGN CORRUPT PRACTICES ACT Application: Worldwide Strategic Business Units and Subsidiaries. It is the
More informationMICR Check Printing and ACH Payment Software
NOW compatible with Windows 8 & Server 2012 MICR Check Printing and ACH Payment Software Create-A-Check 11 provides the industry leading software to print MICR encoded checks and generate ACH payments.
More informationA Performance Audit of the State s Purchasing Card Program
REPORT TO THE UTAH LEGISLATURE Number 2006-09 A Performance Audit of the State s Purchasing Card Program September 2006 Audit Performed By: Audit Manager Audit Supervisor Audit Staff Rick Coleman Susan
More informationInternal Controls over Cash for Small Nonprofits
Internal Controls over Cash for Small Nonprofits Internal controls may be a sensitive issue in small nonprofit organizations. These organizations are built on the concepts of honesty, truthfulness, and
More informationArchdiocese of Chicago Parish Self-Assessment Checklist
Self-Assessment Questions 1. Are written Parish Finance Council guidelines and norms defined, documented, and available to all Parish Finance Council members? 2. Are Archdiocesan best practices communicated
More informationControls should be appropriate to the scale of the assets at risk and the potential loss to the University.
POLICY SUPPORT PAPER MANAGING THE RISK OF FRAUD Risk and Controls in Specific Systems Purpose of the Paper The purpose of this paper is to provide guidance to managers and supervisors on controls that
More information