Fraud Update: Detecting and Preventing the Top Ten Fraud Schemes

Description

Many costly fraudulent schemes have occurred repeatedly throughout the past several decades. Why do these material and frequently recurring frauds succeed? One reason is that business owners, management, auditors, and employees fail to recognize the red flags that have been associated with these financial statement and misappropriation of asset frauds. Another major reason is that the reporting and transaction processing systems do not have adequate controls to either prevent and/or detect these schemes. This course will provide descriptions of how these major frauds are perpetrated (including real-world examples) and the types of cost-effective controls that can be implemented by both small and large businesses and nonprofit entities to identify and prevent these deceptive acts.

Highlights

  • Major financial statement frauds including, among others, corruption conspiracies regarding sales and other types of revenue, estimates, journal entries, and other accounts
  • Major misappropriation of asset frauds including, among others, skimming, larceny, and embezzlement involving inventory, payables, and other accounts
  • Ponzi and asset flip schemes
  • Control implementation ideas
  • Risk factors in accordance with the revised authoritative guidance on fraud

Objectives

  • Identify the findings and implications of major fraud studies.
  • Identify the risk factors and red flags for each of the top ten fraud schemes.
  • Determine design controls to build into systems to mitigate fraud risks.
  • Distinguish the methodology of how frauds are committed.
  • Identify trends in various types of fraud.

Designed For

Business owners, managers, supervisors, employees, accountants and auditors



Leaders

Jerry Spratt

Jerry has 42 years of audit and/or forensic examination experience gained through his employment with Spratt Financial Forensics, Inc., currently as president/owner, and the Arkansas Division of Legislative Audit, where he retired as Assistant Legislative Auditor. Jerry has over 30 years’ combined experience in organization board governance with multiple years in officer positions, including two years as Board Chair of the Arkansas Federal Credit Union (AFCU) Board of Directors; the Arkansas Society of CPAs (ASCPA) Board of Directors, with one year as Board Chair; and the Arkansas Chapter of CFEs, where he served many years as Board President. He has served on numerous accounting, auditing, and forensic examination-related committees, including ASCPA Professional Ethics (1998-2018, one year as Chair) and AFCU Supervisory (Audit) Committee (six years, four as Chair). Jerry also served as an AFCU Defined Benefit Plan Trustee (2006-2015). Jerry has developed and/or taught over 200 courses on forensic accounting and investigation, GAAS, Financial Accounting Standards, AICPA Code of Professional Ethics, nonprofit accounting and auditing, interviewing, internal controls, board governance, trial preparation, and forensic examination for sponsoring organizations since 2004. Course sponsoring organizations include AICPA; Association of Certified Fraud Examiners and local chapters; Arkansas State Society of CPAs and other state societies of CPAs; Surgent; National Business Institute; National Association of Federal Credit Unions; and others. For three years he was an adjunct professor at the University of Arkansas at Little Rock, teaching a graduate-level self-authored forensic course entitled “Accounting 8300 Fraud Audit.” He has written several articles published in Arkansas Business concerning accounting, auditing, and forensic examination. Awards Jerry has received include the Association of Certified Fraud Examiners’ 2004 CFE of the Year; ASCPA Outstanding CPA in Government (2004) and Mac Angel Discussion Leader of the Year (2005, 2010, 2014, and 2015); and AICPA Outstanding Instructor (2011, 2012, and 2014).