What You Will Learn

1. Understanding How Fraud Occurs
 - integrating the fraud theory into your audit
 - incorporating the fraud audit matrix
 - comparing approaches: internal audit, fraud audit, and forensic investigation
 - the fraud triangle: opportunity, pressures, and rationalization
 - identifying who commits fraud
 - fraud in plain English
 - identifying what actually constitutes fraud in your organization
 - how perpetrators conceal fraud
 - the premise of concealment and concealment strategies
 - conversion: how perpetrators benefit from the fraud scheme
 - identifying types of conversion and understanding different audit and 
   industry strategies

2. Building Fraud Scenarios
 - understanding the fraud risk structure
 - the inherent fraud schemes in every business system
 - how to build fraud scenarios for individual audit programs

3. Preparing a Business Process Fraud Risk Assessment for Audit Programs
 - using the drill-down approach to identify scheme variations for each 
   business system
 - how to link fraud risks for each business process to your control structure
 - establishing a score for mitigation of fraud risk by internal controls
 - how to link the control fraud scores to the audit response

4. Incorporating Fraud Risk Assessment into the Audit Program
 - fraud scheme approach
 - the fraud opportunity approach
 - techniques to assess the risk of fraud
 - linking internal controls to fraud risk
 - linking the audit response to fraud risks
 - individual and aggregate fraud risks
 - business risk factors

5. Integrating Fraud Testing into Your Audit Program
 - using red flags to identify fraud
 - how to build and analyze red flags for specific fraud schemes
 - fraud data analysis: approaches and strategies
 - how to build the fraud data profile: the step approach for data mining
 - identifying the response to fraud based on the fraud risk assessment: control
   vs. fraud approach
 - incorporating fraud steps into the audit program
 - how to design fraud audit procedures to pierce the concealment strategy
 - linking the audit program to the risk assessment
 - sampling designed to locate fraud
 - testing and evaluating the design of your anti-fraud controls
 - identifying suspicious transactions through fraud audit procedures
 - protocol for resolving a suspicious transaction
 - writing fraud audit findings and the legal considerations involved

6. Interviewing for Fraud in the Audit Process
 - using the fraud scenario approach
 - understanding the five question types
 - preparation for the interview process
 - managing the reluctant witness
 - connecting the fraud scenario to the illegal act

7. Internal Controls and Fraud
 - how controls are related to the fraud theory
 - fraud control: prevention, detection, deterrence, prosecution, and approval
 - fraud prevention programs and policies
 - how to design controls to minimize fraud
 - managing fraud costs
 - developing fraud awareness programs

8. Misappropriation of Assets
 - disbursement fraud schemes
 - purchasing fraud schemes
 - fraud in payroll and human resource functions
 - contract fraud schemes
 - fraud in revenue and cash receipts functions
 - theft of inventory, equipment, and assets
 - travel expense fraud schemes

9. Financial Statement Fraud
 - fraud in the revenue cycle
 - inventory fraud schemes
 - expenditure fraud schemes
 - journal entry fraud schemes
 - management fraud: incentive, opportunity, and rationalization

10. Professional Standards
 - Sarbanes-Oxley and PCAOB
 - SAS No. 99
 - Institute of Internal Auditors
 - Yellow Book
 - current surveys and reports on fraud

11. Fraud Investigation
 - identifying resources to conduct an investigation
 - focusing on fraud theory and development
 - using private investigators
 - types of interviews and the appropriate approach
 - understanding the interview methodology
 - legal considerations when conducting an interview
 - appropriate collection and analysis of documentation
 - forensic examination of documentation
 - individual rights during investigations
 - understanding the civil court process
 - how the legal system works
 - attorney work product
 - types of evidence
 - Web sites and fraud information

12. Interviewing: Admission-Seeking and Legal Elements
 - initial steps to securing the admission
    -- how to confront the suspect
    -- use of admission seeking questions
    -- managing the denial process
    -- using physical evidence
 - obtaining the oral confession
 - what are the legal considerations
    -- employees obligation to cooperate
    -- combating legal objections