Keep Procure-to-Pay (P2P) Fraud at Bay with Fraud Detection Tools & Techniques
|
|
- Blaze Sanders
- 6 years ago
- Views:
Transcription
1 Keep Procure-to-Pay (P2P) Fraud at Bay with Fraud Detection Tools & Techniques Chris Doxey, CAPP, CCSA, CICA, CPC President, Doxey, Inc
2 2 May 7-9, 2017 Chris Doxey, CAPP, CCSA, CICA, CPC Chris spent most of her career implementing top gun leadership teams and processes in her quest to fight fraud and implement internal controls at Digital Equipment Corporation, Compaq Computer Corporation, and Hewlett Packard. She held senior finance and accounting positions which allowed her to develop and implement standards of internal control for all aspects of financial operations focusing on the procure to pay (P2P) process. She was recruited to assist WorldCom (MCI) with the implementation of internal controls, policies, and corporate governance in Chris uses her background and passion as a management consultant and helps her clients implement internal controls and leading practices across all financial operations.
3 Agenda Introductions About P2P Fraud and the Psychology of Fraud Your Anti-Fraud Toolkit for the P2P Process The Types of Controls and the Three Critical Corporate Controls The Standards of Internal Control for the P2P Process The Top Twenty Controls for AP What Went Wrong: Case Study Analysis Q&A
4 About P2P and the Psychology of Fraud 4
5 The Business Processes with Biggest Fraud Challenges Source: 2014 Aberdeen Survey
6 The Procure to Pay (P2P) Process Flow
7 Why does so much fraud occur in the P2P process?
8 Examples of PTP Internal Control Weaknesses Source: 2014 Aberdeen Survey
9 Types of P2P Fraud Collusion Between Procurement and Suppliers Embezzlement Check Fraud Diverting ACH Payments Intended for Suppliers Transactional Fraud Phony Suppliers Employees Posing as Suppliers Fraudulent and Scam Suppliers Suppliers on Government and Criminal Watch Lists
10 The Fraud Triangle May 7-9, 2017
11 The Fraud Triangle - Opportunity OPPORTUNITY Internal controls are weak or lacking including: o Approvals o Access Controls o Reviews Insufficient segregation of duties or lack of job rotations
12 The Fraud Triangle - Need Financial pressures Debt Loss of Income Need to maintain social status
13 The Fraud Triangle - Justification Get even mentality Overlooked for a promotion Reduction in benefits Funds are borrowed and will be paid back Employee favoritism and other poor management practices
14 The Fraud Diamond Incentive Opportunity Rationalization Capability Note: The fraud diamond was introduced by David T. Wolfe and Dana R. Hermanson in 2004.
15 Your Anti-Fraud Toolkit for the P2P Process 17
16 The Types of Controls and Three Critical Corporate Controls 18
17 The Standard Types of Internal Controls Control Activity Type Examples 1. Preventative 2. Detective 3. Manual 4. Systematic Control mechanism that prevents control issues or problems from occurring. (e.g., house lock) Manual reconciliations, review of authorized signatures, credit checks and approvals that are performed after the fact. Any manual control activity that may include the detective controls noted above. Examples are manual reconciliations or a manual review of authorizations. Three way match of invoices for payment, batch control totals, field level edits/validations
18 The Three Critical Corporate Controls The three most critical internal controls for any company can be established by corporate policies should be "operationalized" into your company's business processes and monitored by the applicable internal control programs. These controls are: 1. Segregation of Duties 2. Delegation of Authority 3. System Access
19 1) Segregation of Duties The Segregation of Duties (SoD) control is most of the most important controls that your company can have. Adequate segregation of duties reduces the likelihood that errors (intentional or unintentional) will remain undetected by providing for separate processing by different individuals at various stages of a transaction and for independent reviews of the work performed. The SoD control provides four primary benefits: 1) The risk of a deliberate fraud is mitigated as the collusion of two or more persons would be required in order to circumvent controls 2) The risk of legitimate errors is mitigated as the likelihood of detection is increased. 3) The cost of corrective actions is mitigated as errors are generally detected relatively earlier in their lifecycle. 4) The organization s reputation for integrity and quality is enhanced through a system of checks and balances.
20 1) Segregation of Duties (Cont.) Best Practice: One of the most common "root causes" of fraud is the lack of SoD controls, weak SoD controls, inappropriate compensating controls, or failure to update SoD controls when responsibilities change. As a best practice, many organizations review their SoD controls on a quarterly basis as part of their control self-assessment (CSA) process. As a result of this review, the applicable SoD controls are updated in a timely manner
21 2) Delegation of Authority Delegation of Authority (DoA): The purpose of the DoA is to ensure the efficient operation of the company while maintaining fiscal integrity and adherence to policy. Accountability for the overall management of the property, assets, financial, and human resources of the company rests with the Chief Executive Officer (CEO). In many cases the "governance" of the DoA is the responsibility of the controller. Individuals that have been assigned authority under the terms of the DoA must safeguard company resources by establishing and maintaining internal controls that deter and detect any potential misuse of resources. Best Practice: Many companies assign levels of authority to the job grades or levels within the organization and apply workflow to streamline the approval process. If an individual is promoted or moves to another department, his or her level of authority is automatically updated in the employee master file.
22 3) Systems Access System Access: The principle of segregation of duties in an information system environment is also critical as it ensures the separation of different functions such as transaction entry, on-line approval of the transactions, master file initiation, master file maintenance, system access rights, and the review of transactions. In the context of application and access level controls, this means that one individual should not have access rights which permit them to enter, approve and review transactions. Assigning different security profiles to various individuals supports the principle of segregation of duties. As an example, operational or process segregation of duties within an accounts payable department will determine the system access rights that should be granted for each associate based on roles and responsibilities.
23 3) Systems Access (Cont.) Best Practice: System access rights are reviewed on a periodic basis (usually monthly or quarterly) to ensure that system access capabilities are appropriate for current staff members and reflect any changes in responsibilities or movements to other departments.
24 How many review their system access controls on a regular basis?
25 Standards of Internal Control for the Procure to Pay (P2P) Process 27
26 The Procure to Pay (P2P) Process Flow
27 About Standards of Internal Control
28 What is the Purpose of May 7-9, 2017 Standards of Internal Control? Determine the risk that is being mitigated; Define the set of internal controls to properly address the risk; Are updated when: There is a change to a P2P process, or system environment; A fraud has been perpetrated; The cost of the control is not in line with the benefit to the organization; or when A business process has recently been automated
29 Have you ever had a fraud in your P2P process?
30 Standards of Internal Control for the P2P Process 1) Supplier Selection and Management 2) Purchasing and Ordering 3) Disbursements 4) P-Card
31 Example: Standard of Internal Control and Risks Mitigated May 7-9, 2017 Control Documented Supplier Selection. There must be a formal, documented supplier selection, qualification, and evaluation process used based on criteria established by the team and approved by purchasing management/client sponsor(s). Risks Mitigated : A-1, A-2, A-3, A-4, A-6 Risks Mitigated A-1 A purchase may be made from unapproved supplier. A-2 Export control violations, related party transactions, or conflict of interest situations may occur. The potential for errors and irregularities is substantially increased. A-3 Goods or services purchased may not meet quality standards. Unauthorized prices or terms may be accepted. A-4 Company will not have sufficient information to conduct meaningful negotiations and utilize its full purchasing power. A-6 Goods and services may be received early or late resulting in business interruption or excessive levels of inventory.
32 The Top 20 Controls for AP 34
33 20 Top Accounts Payable Controls Corporate Level Controls 1. Adherence to the Company s Tone at the Top 2. Adherence to Company Code of Conduct and Ethics Training 3. Performance of Employee Background Checks 4. Performance of Delegation of Authority (DoA) Controls 5. Assurance of Segregation of Duties (SoD) Controls 6. Implementation of System Access (SA) Controls 7. Assurance of Record to Report (R2R) Controls 8. Implementation of Account Reconciliation Controls
34 20 Top Accounts Payable Controls (Cont.) Managing the Supplier Master 9. Obtain Supporting Tax Documents 10. Validate Tax Documents with Applicable Authorities 11. Perform Compliance Screening (Onboarding and Throughout the Life of the Supplier) 12. Validate the Supplier (Websites, Scam Suppliers, Phone Numbers, and Address) 13. Perform Supplier and Employee Master File Matching Process (Annually)
35 20 Top Accounts Payable Controls (Cont.) Invoice Processing and Disbursements 14. Implementation of a Large Dollar Disbursement Review Process 15. Implementation of Positive Pay, Positive Payee, and Electronic Payment Controls 16. Ensure Segregation of Duties (SoD) Controls for Supplier Master and Invoice Processing 17. Implement and Review AP Operational Metrics
36 20 Top Accounts Payable Controls (Cont.) P-Card and T&E Controls 18. Implementation of a P-Card and T&E Policy and Training Program 19. Implementation of Cardholder Agreements for all Corporate Credit Cards HR Controls 20. Implementation of a Job Rotation Program (If Feasible)
37 12 Warning Signs of Accounts Payable Fraud 1. Invoices from various suppliers on similar invoice templates 2. Suppliers with incorrect TIN and VAT numbers 3. Transactions which are out of the ordinary 4. Excessive voids or credits 5. Large number of invoices, especially to a particular supplier, just beneath the approvals threshold 6. Few, or unclear reasons for a particular service 7. Suppliers with PO Box addresses, and residential addresses 8. Erratic employee behavior - always in early or late 9. Sudden, or unexplained employee departure 10.An increase in duplicate payments 11.Excessive amounts of rounded up, or down invoice amounts 12.Above average payments to a supplier or invoice payment spikes Source:
38 What Went Wrong? Case Study Analysis 40
39 What Can Go Wrong? May 7-9, 2017
40 Foster Law Offices Kimberly Kurka, a 35-year-old employee of Foster Law Offices, has been accused of stealing $141,000 from her employer over a two-year period. During her employment, her duties included managing payroll, accounts receivable, accounts payable and business related to the trust and operating accounts. She also had access and passwords to the businesses online accounts. Police reported that a forensic fraud examination of the law office s accounting records showed that Kurka was misappropriating funds as early as 2008 and continuing through The fraud was conducted through checks, money transfers between accounts, credit cards and cash payments from clients. According to the Iowa City Press-Citizen, Kurka allegedly wrote herself additional paychecks, inflated her payroll, converted credit card access checks to funds for the operating account and stole cash payments from clients. Kurka has been arrested and faces one count of first-degree theft, a Class C felony. Source:
41 Foster Law Offices (Cont.) The Major Issues The following major control infrastructure items were lacking: Business Ethics Timely Bank Account Reconciliations Journal Entry Controls Disbursement Controls Critical Corporate Controls Multiple Segregation of Duties Issues and Conflicts Systems Access No Compensating Controls!
42 What to do if you suspect a fraud.. 1. Make sure you have all the facts! 2. Do not take action yourself 3. Call your Ethics Hotline 4. If appropriate, speak with your manager and/or the next highest level of authority 5. Involve Internal Audit and/or Corporate Security 6. Do not tell anyone else about your suspicions 7. Never confront the employee
43 Wrap-Up and Q&A 45
44 My Contact Information Is: Chris Doxey, CAPP, CCSA, CICA, CPC President, Doxey, Inc
Managing Risk in Your P2P Process: 10 Ways that Automation Can Help Mitigate Risk
Managing Risk in Your P2P Process: 10 Ways that Automation Can Help Mitigate Risk Chris Doxey, CAPP, CCSA, CICA, CPC President, Doxey, Inc. chris@chrisdoxey.com 571-267-9107 Agenda Introduction to Risk
More information2/27/2017. Segregation of Duties/ Internal Controls. Objectives. Agenda
Segregation of Duties/ Internal Controls 2017 WASBO Accounting Conference David Maccoux, Shareholder Objectives Discuss failures of internal controls to detect or prevent fraud and learn how to implement
More informationSTUDY UNIT TEN INTERNAL AUDIT RESPONSIBILITIES FOR FRAUD
STUDY UNIT TEN INTERNAL AUDIT RESPONSIBILITIES FOR FRAUD 1 10.1 Fraud -- Nature, Prevention, and Detection..................................... 1 10.2 Fraud -- Indicators........................................................
More informationOUTSMART FRAUD. Strategic Internal Controls to Prevent Business Fraud
OUTSMART FRAUD Strategic Internal Controls to Prevent Business Fraud GrowthForce LLC 800 Rockmead Drive Suite 200 Phone 281.358.2007 Fax 281.358.4120 OUTSMART BUSINESS FRAUD Using statistical data from
More informationFraud Risk Management
Fraud Risk Management Specific Anti-Fraud Controls (Process or Transaction Level) 2017 Association of Certified Fraud Examiners, Inc. Discussion Questions 1. Does your organization have adequate staffing
More informationCompany LOGO C B T. An Educational Computer Based Training Program
C B T An Educational Computer Based Training Program The University of Texas at Dallas Compliance Training Effectively Controlling Risks Company Effectively Controlling Risks What is the purpose of this
More informationFraud Prevention: How to Identify and Protect Your Higher Ed Institution
Fraud Prevention: How to Identify and Protect Your Higher Ed Institution November 16, 2017 Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment
More informationCITY OF CORPUS CHRISTI
CITY OF CORPUS CHRISTI CITY AUDITOR S OFFICE Audit of Purchasing Program Project No. AU12-004 September 20, 2012 City Auditor Celia Gaona, CIA CISA CFE Auditor Nora Lozano, CIA CISA Executive Summary In
More informationSeattle Public Schools The Office of Internal Audit
Seattle Public Schools The Office of Internal Audit Internal Audit Report September 1, 2014 through Current Issue Date: June 21, 2016 Executive Summary Background Information The function is centralized
More informationFinancial Statement Close Process
Financial Statement Close Process Process Control Objective Risk Control Considerations Segregation of Duties Accounting functions are properly segregated. Unauthorized and inaccurate transactions may
More informationInternal Audit Work Plan
Internal Audit Work Plan Fiscal Year 2018 Department of Management and Finance 1 Internal Audit Services Arlington County s Internal Audit Division is organizationally located in the Department of Management
More informationEMPLOYEE FRAUD OPPORTUNITIES CHECKLIST
Page 128 of 174 EMPLOYEE FRAUD OPPORTUNITIES CHECKLIST Recognizing Warning Signs and Preventing Problem Situations Why are consistent internal controls important? Management decisions, financial reports,
More informationFraud Prevention, Detection, and Internal Controls
Fraud Prevention, Detection, and Internal Controls Budget, Accounting and Reporting Council May 28, 2015 Sherrie Ard, CPA, CFE Financial Management Specialist Local Government Performance Center Local
More informationCOSO Updates and Expectations. IIA San Diego Chapter January 8, 2014
COSO Updates and Expectations IIA San Diego Chapter January 8, 2014 Agenda Overview of 2013 Internal Control-Integrated Framework and Companion Guidance 2013 Framework General Enhancements by Component
More informationInternal Controls: Need Them, Have Them, Love Them
Internal Controls: Need Them, Have Them, Love Them Tiffany R. Winters, Esquire twinters@bruman.com Brustein & Manasevit Fall Forum 2010 Why Do We Have Internal Controls? The Federal Managers Financial
More informationCORP Appendix A CORPORATE POLICY. Attachments: Related Documents/Legislation: Revenue Administrative Policy
CORP2014-085 Appendix A CORPORATE POLICY Policy Title: Cash Handling Policy Policy Category: Financial Control Policy Policy No.: FC-016 Department: Corporate Services Approval Date: Revision Date: Author:
More informationOVERVIEW 4/19/10. Internal Controls and the Audit Process May 4, 2010 OVERVIEW. Definition and historical perspective of internal auditing
and the Audit Process May 4, 2010 Presented by: Deborah A. Stevens CPA Wichita County Auditor 1 OVERVIEW Definition and historical perspective of internal auditing Role and responsibilities of the internal
More informationFraud Detection and Prevention
Fraud Detection and Prevention Presented by: Louise Hanson, Moss Adams LLP Emily Ogden, Moss Adams LLP April 24, 2014 1 DISCLOSURE STATEMENT The material appearing in this presentation is for informational
More informationGuide to Internal Controls
Guide to Internal Controls Updated January 2017 The Guide to Internal Controls was developed to help you establish and maintain effective internal controls in your department/division. This guide summarizes
More informationUnderstanding Internal Controls Office of Internal Audit
Understanding Internal Controls Office of Internal Audit July 2015 Objectives for this manual Provide guidance to help management understand their responsibility to ensure that internal controls are established,
More informationWeek 3: Fraud, Procure to Pay Process Controls
Edward Beaver Edward.Beaver@temple.edu ff MIS 5121: Business Processes, ERP Systems & Controls Week 3: Fraud, Procure to Pay Process Controls Video: Record the Class Discussion v Something really new,
More informationChapter 7 Internal Controls
Chapter 7 Internal Controls Establishment of and adherence to internal controls is a major part of managing an organization. Internal controls serve as the first line of defense in safeguarding assets
More informationSegregation of Duties
Segregation of Duties The Basics of Accounting Controls Segregation of Duties The Basics of Accounting Controls 2014 SP Plus Corporation. All rights reserved. No part of this publication may be reproduced,
More informationMelinda J. DeCorte, CPA, CFE, CGFM, PMP
Melinda J. DeCorte, CPA, CFE, CGFM, PMP Melinda DeCorte has over 19 years of accounting, auditing and government financial management experience. She directs, manages and serves in a quality assurance
More informationContract and Procurement Fraud. Fraud in Procurement without Competition
Contract and Procurement Fraud Fraud in Procurement without Competition Sole-Source Awards Noncompetitive procurement process through the solicitation of only one source Procurement through sole-source
More informationEric Anderson, City Manager. Scottie Nix, Internal Auditor
City of Tacoma Internal Audit Office Memorandum TO: FROM: SUBJECT: Eric Anderson, City Manager Scottie Nix, Internal Auditor Improving SAP Roles Assignment and Monitoring at the City of Tacoma Follow Up
More informationDiocese of Covington Policies & Procedures Manual Section: Compliance Accounting Policy: Internal Control & Segregation of Duties
Internal Control refers to the policies and procedures established to provide reasonable assurance that parish assets are safeguarded, that accountability is achieved, and that errors in financial records
More informationCash Reconciliations and Cash Handling
Cash Reconciliations and Cash Handling WASBO Accounting Conference March, 2016 Handling Cash Cash may be the most vulnerable asset in your LEA. How do you safeguard your cash? Timely reconciliation of
More informationFRAUD IN GOVERNMENT AN OPEN DISCUSSION. Presented By William Blend, CPA, CFE
FRAUD IN GOVERNMENT AN OPEN DISCUSSION Presented By William Blend, CPA, CFE AGENDA Fraud and Ethics Discussion Fraud Triangle and Beyond Data from 2016 ACFE Report to the Nations Recent Fraud Investigations
More informationWhy Are These Activities Important?
Best Practices in Budgeting, Forecasting, Cash Flow Management, Accounts Receivable and Accounts Payable Management Presented To: Penn State University - Abington Continuing Professional Education for
More informationWhy Businesses Love Payables Lockbox
Why Businesses Love Payables Lockbox (And Yours Should, Too!) A whitepaper examining how businesses can streamline accounts payable processing, reduce payment processing time, and lower accounts payable
More informationMcGraw-Hill/Irwin. Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 04 Management Fraud and Audit Risk Learning Objectives 1. Define business risk and understand how management
More informationC. B. Smith Park Cash Handling Process
Exhibit 1 C. B. Smith Park Cash Handling Process May 15, 2014 Report No. 14 08 Office of County Auditor Evan A. Lukic, CPA County Auditor Table of Contents EXECUTIVE SUMMARY... 1 METHODOLOGY... 1 BACKGROUND...
More informationSheena Tran, CPA May 19, 2014
Internal Controls Review 2012/13 Sheena Tran, CPA May 19, 2014 TO: ACCCA BOARD OF DIRECTORS This is considered to be a financial review and recommendations for the Association of California Community College
More informationAccounts Payable on Campus: An Update
Accounts Payable on Campus: An Update 1 Mark Krawczyk, CTP Principal, CZYK & Associates 31ST NATIONAL COLLEGE & UNIVERSITY BURSARS SFS CONFERENCE APRIL 23-26, 2017 PONTE VEDRA BEACH, FL SAWGRASS MARRIOTT
More informationAssociation Fraud: How It Happens and What You Should Know
Association Fraud: How It Happens and What You Should Know National Association Conference September 17, 2015 Chicago, Illinois Investment advisory services are offered through CliftonLarsonAllen Wealth
More informationOTHER PEOPLE S MONEY: THE BASICS OF ASSET MISAPPROPRIATION
OTHER PEOPLE S MONEY: THE BASICS OF ASSET MISAPPROPRIATION World Headquarters the gregor building 716 West Ave Austin, TX 78701-2727 USA IV. PAYROLL SCHEMES Overview Payroll schemes occur when an employee
More informationK-State Athletics, Inc. Report on Internal Controls related to the Contracting, Travel, and Expenditure processes.
K-State Athletics, Inc. Report on Internal Controls related to the Contracting, Travel, and Expenditure processes. October 30, 2009 October 30, 2009 Mr. John Currie Director of Athletics K-State Athletics,
More informationIn Control: Getting Familiar with the New COSO Guidelines. CSMFO Monterey, California February 18, 2015
In Control: Getting Familiar with the New COSO Guidelines CSMFO Monterey, California February 18, 2015 1 Background on COSO Part 1 2 Development of a comprehensive framework of internal control Internal
More informationInternal Control Evaluation
INTERNAL CONTROL EVALUATION Adapted from a checklist created by Jackie F. Breland, CPA (www.jackiebreland.com) Organization: Date Prepared or Updated: Prepared by: Introduction The purpose of this checklist
More informationWire Transfer Audit. Craig Hametner, CPA, CIA, CMA, CFE City Auditor. Prepared By: Jed Johnson Senior Audit Analyst. Michelle Taylor Audit Analyst
Wire Transfer Audit Craig Hametner, CPA, CIA, CMA, CFE City Auditor Prepared By: Jed Johnson Senior Audit Analyst Michelle Taylor Audit Analyst INTERNAL AUDIT DEPARTMENT March 1, 2010 Report 0902 Table
More informationWhether you take in a lot of money. or you collect pennies
Whether you take in a lot of money or you collect pennies ..it is important to maintain good cash handling procedures: Segregation of Duties Security Reconciliation Management Review Documentation It s
More informationInternal Control Questionnaire and Assessment
Bureau of Financial Monitoring and Accountability Florida Department of Economic Opportunity September 15, 2016 107 East Madison Street Caldwell Building Tallahassee, Florida 32399 www.floridajobs.org
More informationEnhancing Procurement Card Programs For E-Commerce & Mission Success. IntraMalls Assurance Services
Enhancing Procurement Card Programs For E-Commerce & Mission Success IntraMalls Assurance Services IntraMall Mission Deliver Extraordinary Value E-Purchase Payment Efficiencies P-Cards and Electronic Funds
More informationKnowledge Alert. Emerging Trends in Fraud Risks
Knowledge Alert Emerging Trends in Fraud Risks January 2010 i Disclaimer Copyright 2010 by The Institute of Internal Auditors (IIA) located at 247 Maitland Avenue, Altamonte Springs, FL 32701, U.S.A. All
More informationINTERNAL AUDIT Fraud Investigation Process Campus Administrative Training Series April 24, 2017
INTERNAL AUDIT Fraud Investigation Process Campus Administrative Training Series April 24, 2017 Stewart Cobine, CPA AVP & Chief Audit Officer Maggie Harrell, CFE Senior Investigative Auditor FOCUS OF SESSION
More informationInternal Controls Integrating COSO
Community Action Partnership 2016 Annual Convention August 30 September 2, 2016 Austin, TX J.W. Marriott Austin Internal Controls Integrating COSO Thursday, September 1, 2016 9:15 am 10:45 am Presented
More informationLoch Lomond and The Trossachs National Park Authority. Key Controls Report
Loch Lomond and The Trossachs National Park Authority Key Controls Report Prepared for Loch Lomond and The Trossachs Park Authority April 2015 Audit Scotland is a statutory body set up in April 2000 under
More informationIf an adequate segregation of duties does not exist, the following could occur:
Segregation of Duties Safeguarding Assets Review and Approval Accounting Policies and Procedures Efficiency and Effectiveness Reporting Timeliness Segregation of Duties Duties within the department or
More informationJournal of Forensic & Investigative Accounting Volume 9: Issue 3, Special Issue, 2017
Cutting through the Numbers: How Data Mining Was Used to Uncover Multiple Frauds at a Hospital System Medical Center Dr. Bryan Cataldi Bryan Callahan Dr. James F. Sander Dr. Anne S. Kelly* Introduction
More informationCharities Toolkit. A toolkit for managing fraud risks
Charities Toolkit A toolkit for managing fraud risks Charities toolkit A toolkit for charities to minimise fraud risk Benchmarks for an effective fraud risk management framework 1. Understanding what fraud
More informationAudit Report 2016-A-0002 City of Delray Beach Purchasing
PALM BEACH COUNTY John A. Carey Inspector General Inspector General Accredited Enhancing Public Trust in Government Redacted Audit Report 2016-A-0002 City of Delray Beach Purchasing March 2, 2016 Insight
More informationThe Episcopal Diocese of Kentucky
The Episcopal Diocese of Kentucky Internal Control Questionnaire Manual of Business Methods in Church Affairs (Spring 2012) Chapter II: Internal Controls, Section C The following Internal Control Questionnaire
More informationInternal Control Questionnaire and Assessment
Bureau of Financial Monitoring and Accountability Florida Department of Economic Opportunity September 30, 2017 107 East Madison Street Caldwell Building Tallahassee, Florida 32399 www.floridajobs.org
More informationHow to Protect Against Fraud in an Evolving Payments Environment
How to Protect Against Fraud in an Evolving Payments Environment Sarah Schaus AVP/Assistant Treasurer Allianz Timothy Dwyer AVP/Assistant Treasurer Nationwide Ravin Yadav Vice President J.P. Morgan S I
More informationSeveral unallowable expenditures and exceptions to policy were noted.
Several unallowable expenditures and exceptions to policy were noted. In our testing of 16 disbursement/pcard transactions, 12 travel transactions, and 9 gift transactions, we noted 6 transactions contained
More informationLink download full: Solution Manual for Accounting Information Systems 10th Edition by Bodnar http://testbankcollection.com/download/solution-manual-for-accountinginformation-systems-10th-edition-by-bodnar
More informationChallenges & Best Practices in Managing the Account Reconciliation Process
Challenges & Best Practices in Managing the Account Reconciliation Process Presenters: Donna Dean, CPA Experis Finance Director, Finance & Accounting Susan Parcells, CPA BlackLine Systems Director Finance
More informationContract Risk and Compliance & Warranty Fraud. David Maberry Chief Risk Officer American Fidelity Assurance Company
Contract Risk and Compliance & Warranty Fraud David Maberry Chief Risk Officer American Fidelity Assurance Company Who am I and Why Am I Here? David Maberry is the Chief Risk Officer for American Fidelity
More informationWhat does an external auditor look for in SAP R/3 during SOX 404 Audits? Ram Bapu, CISSP, CISM Sandra Keigwin, CISSP
What does an external auditor look for in SAP R/3 during SOX 404 Audits? Ram Bapu, CISSP, CISM Sandra Keigwin, CISSP What does an external auditor look for in SAP during SOX 404 Audits? Corporations have
More informationOVERVIEW. Common Personality Traits of Fraudsters. Common Sources of Pressure. Changes in Behavior
Red Flags of Fraud OVERVIEW Red Flags of Fraud are warning signs that may indicate a higher fraud risk. They are NOT evidence that fraud is actually occurring. Many employees demonstrate one or more of
More informationDefining Payroll Process
Defining Payroll Process Personal Services = Big Bucks Expenditure includes Adjusted gross pay Employer s share of benefits Payroll department Pays employees Strong internal controls needed 42 Payroll
More information- Excessive gambling or investment habits - Strong challenge to beat the system - Undue family pressure such as divorce - Overwhelming desire for pers
RED FLAGS OF INTERNAL FRAUD PROFILE OF THE PERPETRATOR: - Most frequently it is the person you trust the most - Has the technical skills to pull off the theft secretly - The activity is clandestine - The
More informationButte County Office of Education
Butte County Office of Education Extraordinary Audit of the Blue Oak Charter School November 16, 2017 Michael H. Fine Chief Executive Officer Fiscal Crisis & Management Assistance Team November 16, 2017
More informationSage MAS 90 and 200 Product Update 2 Delivers Added Value!
Sage MAS 90 and 200 Product Update 2 Delivers Added Value! The second Sage MAS 90 and 200 4.4 Product Update 4.40.0.2 is available via a compact download from Sage Online. Delivering additional features
More informationSupply Chain Fraud & Integrity
Supply Chain Fraud & Integrity Hosted by United States Fashion Industry Association (USFIA) and May 17, 2017 8:30 A.M. Eastern/5:30 A.M. Pacific Do you have a question? During the webinar, all attendees
More informationFRAUD POLICY. Lesley Carnegie, Governance & Assurance Manager. Blackwood Managers will be made aware of updated policy by .
FRAUD POLICY Version Number Issue 4.0 Date Revision Complete Policy Owner Author Reason for Revision Data Protection Equalities Impact Assessment Is it required? Yes/No Proof Read 2 nd March 2018 Head
More informationUniversity Internal Audit
University Internal Audit Compliance Audit Overview Bill Abplanalp Audit Manager Agenda Introductions What is Internal Audit Compliance Review Questions Internal Audit Mission Provide independent, objective
More informationThe Bank of Elk River: Digital Wallet Terms and Conditions
The Bank of Elk River: Digital Wallet Terms and Conditions These Terms of Use ("Terms") govern your use of any eligible debit card issued by The Bank of Elk River (a "Payment Card") when you add, attempt
More informationMecklenburg County Department of Internal Audit
Mecklenburg County Department of Internal Audit Park and Recreation Department Sugaw Creek Recreation Center Cash Collection Investigation Report 1288 August 24, 2012 Internal Audit s Mission Internal
More informationAny observations not included in this report were discussed with your staff at the informal exit conference and may be subject to follow-up.
Larry Mandel Vice Chancellor and Chief Audit Officer Office of Audit and Advisory Services 401 Golden Shore, 4th Floor Long Beach, CA 90802-4210 562-951-4430 562-951-4955 (Fax) lmandel@calstate.edu August
More informationP-Cards Done Right. Katie Beatty Community Engagement Manager
P-Cards Done Right Katie Beatty Community Engagement Manager About the NAPCP We are an association committed to advancing YOU and other Commercial Card and Payment professionals worldwide by providing
More informationInternal Audit Report
Internal Audit Report C u y a h o g a C o u n t y, O h i o D e p a r t m e n t o f I n t e r n a l A u d i t i n g Benford s Law Audit 2016 Cuyahoga County Fiscal Office Accounts Payable January 1, 2016
More informationFraud Risk Management
Fraud Risk Management Introduction Bethmara Kessler, CFE, CISA Campbell Soup Company 2017 Association of Certified Fraud Examiners, Inc. CPE Information 2017 Association of Certified Fraud Examiners, Inc.
More informationBrunswick Access Control System Business Owner and Manager Guidelines
Brunswick Access Control System Business Owner and Manager Guidelines Creation Date: February 18, 2010 Version: 1.0 Last Updated: April 20, 2010, 2010 Author: Maureen Broman, Controls & Compliance BACS:
More informationSegregation of Duties
Segregation of Duties This is a case assignment that develops both the theoretical base for segregation of duties and then illustrates how this is accomplished in a highly integrated computerized enterprise
More informationFRAUD RISK FACTORS CHECKLIST (Source: New AU Section 240, Appendix A)
Page 136 of 174 FRAUD RISK FACTORS CHECKLIST (Source: New AU Section 240, Appendix A) RECOGNIZING RISK FACTORS THAT SHOULD GET YOUR ATTENTION How to use the checklist: 1. Review this checklist towards
More informationAchieve. Performance objectives
Achieve Performance objectives Performance objectives are benchmarks of effective performance that describe the types of work activities students and affiliates will be involved in as trainee accountants.
More informationPrince William County Public Schools Annual Audit Plan
Prince William County Public Schools 2011 Annual Audit Plan Office of Internal Audit Vivian Calkins-McGettigan, MBA, CPA, CPFO Chief Internal Auditor Table of Contents Foreword 3 Introduction to the Office
More informationEffective implementation of COSO s new anti-fraud guidance
Effective implementation of COSO s new anti-fraud guidance In September 2016, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) published a new Fraud Risk Management Guide (Anti-fraud
More informationJD Edwards EnterpriseOne Financial Management Overview
JD Edwards EnterpriseOne Financial Overview Karen L. Brown Senior Principal Product Manager Program Agenda 1 JD Edwards EnterpriseOne Overview 2 3 EnterpriseOne Financial Overview
More informationAuditing for Fraud. Planning & Approaches
Auditing for Fraud Planning & Approaches Today s Agenda Introductions What is Fraud? Internal audit and fraud Managing Fraud as an organization 2 Today s Agenda Introductions 3 Clark Schaefer Consulting?
More informationInternal Audit Report. Contract Administration: 601CT Contracts TxDOT Internal Audit Division
Internal Audit Report Contract Administration: 601CT Contracts TxDOT Internal Audit Division Objective Review contract administration and governance of 601CT contracts for structural compliance with laws
More informationCorporate Governor. Providing vision and advice for management, boards of directors and audit committees Winter 2015
Corporate Governor Providing vision and advice for management, boards of directors and audit committees Winter 2015 COSO 2013 framework boosts fraud risk assessment and prevention Fraud is among the most
More informationTHE NATIONAL GALLERY ANTI FRAUD, BRIBERY AND CORRUPTION RISK MANAGEMENT STATEMENT.
THE NATIONAL GALLERY ANTI FRAUD, BRIBERY AND CORRUPTION RISK MANAGEMENT STATEMENT www.nationalgallery.org.uk Anti Fraud, Bribery and Corruption 2011 Introduction The National Gallery requires all those
More informationUsing Data Analytics as a Management Tool to Identify Organizational Risks
2013 CliftonLarsonAllen LLP Using Data Analytics as a Management Tool to Identify Organizational Risks Government Finance Officers Association of South Carolina October 13, 2014 cliftonlarsonallen.com
More informationAuditing Standards and Practices Council
Auditing Standards and Practices Council PHILIPPINE STANDARD ON AUDITING 315 UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT PHILIPPINE STANDARD ON AUDITING
More informationSEMINOLE COUNTY OFFICE OF MANAGEMENT AND BUDGET PURCHASING DIVISION BLANKET PURCHASE ORDER PROCESS AUDIT. March 31, 1998
SEMINOLE COUNTY OFFICE OF MANAGEMENT AND BUDGET PURCHASING DIVISION BLANKET PURCHASE ORDER PROCESS AUDIT March 31, 1998 March 31, 1998 The Honorable Randall C. Morris Chairman The Board of County Commissioners
More informationIntuit QuickBooks Enterprise Solutions 11.0 Complete List of Reports
Intuit QuickBooks Enterprise Solutions 11.0 Complete List of Reports Intuit QuickBooks Enterprise Solutions is the most advanced QuickBooks product for businesses with more complex needs. It offers advanced
More information3 rd Annual Professional Development Conference Development District Association of Appalachia John G. Hulsey, CGFM
3 rd Annual Professional Development Conference Development District Association of Appalachia John G. Hulsey, CGFM Examine the true nature of accounts payable Determine how the accounts payable process
More informationMinnesota State Community and Technical College
Office of Internal Auditing Minnesota State Community and Technical College Internal Control and Compliance Audit Reference Number 2017-01 Report Classification: Public Dear Members of the Minnesota State
More informationMorality/Ethics in a Workplace and the Ethical Dilemma for SCM, Finance & Internal Audit
Morality/Ethics in a Workplace and the Ethical Dilemma for SCM, Finance & Internal Audit Copyright: These slides were created for illustrative purposes only and are compiled from various sources.. These
More informationComputershare Group Code of
Computershare Group Code of Conduct A Message from the President & CEO Underpinning everything we do as a business are our three core values: Certainty: to deliver our services and solutions right first
More informationTHE UNIVERSITY OF GEORGIA INTERNAL AUDITING DIVISION INTERNAL CONTROL QUESTIONNAIRE GENERAL
GENERAL BACKGROUND MATERIAL A. Please provide an organization chart which shows lines of authority and responsibility for the unit. B. What department code(s) does your Office manage? C. Who is the contact
More informationEXECUTIVE SUMMARY - Internal Control Review of Facilities Engineering and Project Management
EXECUTIVE SUMMARY - Internal Control Review of Facilities Engineering and Project We performed a limited scope audit of Engineering and Project (EPM) current and proposed processes of institutional managed
More informationProcurement Management Internal Audit
INTERNAL AUDIT REPORT Procurement Management Internal Audit R-17-11 October 9, 2017 Executive Summary Introduction Internal Audit (IA) has been directed by the Board to perform an internal audit on the
More informationInternal Audit Policy and Procedures Internal Audit Charter
Mission Statement Internal Audit Policy and Procedures Internal Audit Charter The mission of the Internal Audit Department is to provide independent and objective reviews and assessments of the business
More informationEmbezzlement & Fraud How You Can Protect Yourself. Pam Newman, CMA,CFM, MBA
Embezzlement & Fraud How You Can Protect Yourself Pam Newman, CMA,CFM, MBA Pam Newman BS and MBA from University of Nebraska CMA Certified Management Accountant CFM Certified Financial Manager President
More informationRisk assessment checklist - Purchasing cycle
Check Yes or No or N/A (where not applicable). Where a No is indicated, some action may be required to rectify the situation. Cross-references (e.g., See FN 1.01) point to the relevant policy in the First
More informationInternal Controls and Ethics. Internal Controls & Ethics
Internal Controls and Ethics Internal Controls & Ethics 1 Session Objectives Refresher on Internal Audit Be able to assess risks in your department Be able to apply internal control concepts to mitigate
More information