The Report to the Nations on Occupational Fraud and Abuse indicates that the typical organization loses 5-7% of its annual revenues to fraud. The Standards state that internal auditors must have sufficient knowledge to evaluate the risk of fraud and the manner in which it is managed by the organization, must report on fraud risks and evaluate the potential for the occurrence of fraud. Internal auditors must evaluate the organization’s programs and controls and assess the risks of misstatements in financial and non-financial reports.
The expectations regarding fraud awareness are increasing and auditors should be familiar with revenue, expenditure, inventory, cash, accounts receivable, journal entries, management override and vendor fraud schemes, among others. Knowing the fundamentals of fraud can help internal auditors identify troublesome conditions and add fraud steps to their audit programs. In general, internal auditors must adapt their thinking and methods since the audit committee and senior management expect internal auditors to add value not only detecting and investigating fraud after it has occurred, but to also be proactive and help the organization deter and prevent it.
What you will learn
- Review the key characteristics and types of fraud
- Review fraud schemes
- Learn proactive techniques and approaches to detect fraud
- Identify the management practices that help or hinder the deterrence of fraud
- Examine the 5 key principles of a fraud risk management process
- Learn the fundamentals of fraud investigations and evidence gathering
- Review the fraudster’s profile
- Acquire an enhanced and practical view of the Fraud Triangle