Fraud and Cash Receipts: Common Frauds and Internal Controls

Description

Revenue and cash receipts are two critical areas that require strong controls to prevent intentional fraud or unintentional misstatements. While there is well-publicized fraud in these areas in larger companies, it also occurs in smaller businesses and not-for-profit entities. A sound system of internal controls is needed to help prevent fraud. All too often, a "one-size-fits-all" system is put in place without considering the uniqueness of each entity. It is crucial that an internal control system is tailored so that the areas of greatest risk receive the most attention.

Highlights

  • Traditional revenue system
  • Retail revenue cycle
  • Manufacturing revenue cycle
  • Service revenue cycle
  • Accounts receivable and billing
  • Cash receipts
  • Revenue frauds and fraudulent financial reporting

Objectives

  • Identify common frauds in the revenue and cash receipts processes.
  • Identify internal controls that mitigate various risks.
  • Recall an analysis process to improve efficient and effective risk management in your organization.

Designed For

Business owners, managers, supervisors, 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).