Fraud Risk: Assessment, Prevention and Detection

Businesses are becoming increasingly exposed to fraud: according to an ACFE survey, a typical Canadian organization loses 5% of its annual revenues to fraud every year. The need to implement company-specific antifraud measures to address internal corporate fraud and misconduct is becoming more and more critical.

Occupational fraud is present in any industry and could lead to reputation damage and even bankruptcy. Under the right circumstances, even the most loyal employees might commit fraud if given the motive and opportunity to do so. The problem is that we don’t know whom, when and how it will happen.

McGill University is ACFE (Anti-Fraud Education Partner).

Date: April 23, 24, 2013
Time: 9:00 am – 5:00 pm
Location: 688 Sherbrooke Street West
Seminar Fee: $1,095.00

Course Description

This course uses a competency-based approach to explore fraud risk assessment, fraud prevention and deterrence techniques, as well as key components of anti-fraud policy and programs. It will analyze the risk assessment process; financial transaction and fraud schemes, management and auditor responsibilities to detect fraud; analyze the legal aspects with a focus on common law principles of the Canadian civil and criminal justice system.

The course will introduce techniques to properly collect and document information and evidence in the fraud investigation process, including interview techniques. It will explore the criminology and ethics to understand the reasons behind the fraudulent activity.

Objectives

At the end of this course the participant will be able to:

• Differentiate fraud from abuse
• Understand why and how fraud is committed
• Establish key components of anti-fraud policy and fraud risk management program
• Develop an effective fraud risk assessment process
• Execute the fraud risk assessment
• Report the results of the fraud risk assessment
• Address the identified fraud risks
• Create a perception of detection

Outline

• Differentiate fraud from abuse :

1. Define fraud and abuse
2. The major differences between fraud and abuse
3. The fraud link to risk management

• Understand why and how fraud is committed

1. The fraud triangle
2. Fraudster’s profile
3. Impact of fraud on Organizations

• Establish key components of anti-fraud policy and fraud risk management program

1. "Tone at the top";
2. Code of conduct and confirmation process
3. HR process : hiring, promoting, training
4. Fraud risks assessment process
5. Internal control: preventive and detective
6. Audit committee: strength and independence
7. Internal audit and Certified Fraud Examiners
8. External auditors
9. Compliance / Integrity Unit
10. Technology tools and cross-group collaboration
11. Whistle blowing procedures

• Develop an effective fraud risk assessment process

1. Objectives
2. The risk management matrix
3. Risk typology
4. Fraud risk
5. Fraud risk responsibility: who?

• Execute the fraud risk assessment

1. Collecting data
2. Analyzing data
3. Identifying risks

• Report the results of the fraud risk assessment

1. Prioritizing risks alert
2. Selecting countermeasures
3. Action plan

• Address the identified fraud risks

1. Scanning for fraud existence
2. Implementation of countermeasures
3. Evaluating effectiveness of countermeasures
4. Managing the fraud risk

• Create a perception of detection

1. Proactive prevention techniques
2. Proactive audit tests
3. Physical presence

Who Should Attend

• Auditors
• Accountants
• Treasurers
• Controllers
• Governance, risk and compliance professionals
• Risk managers
• Bank and financial institution managers
• Procurement managers and personnel
• Law-enforcement professionals
• HR professionals
• Business owners & business valuators

Lecturer