AuditNet® & White-Collar Crime 101 LLC

Detecting and Preventing Fraud Using Data Mining Techniques
June through December, 2010

 

A Special “How-To” Learning Series from AuditNet® and FraudAware®

 

 

In January, 2009, the Institute of Internal Auditors implemented a new Standard making auditing for fraud MANDATORY for internal auditors. Not at all surprising in light of the growing frequency and cost of financial and accounting frauds in organizations around the globe. A critical related IIA standard says this: “Auditors must consider use of technology-based audit and other data analysis techniques.”
 

And in fact all three of the leading fraud and audit associations, the AICPA, ACFE, and IIA, recommend the use of this technology to detect fraud. As part of its ongoing Webinar Program, Fraud-Auditing Skills Training (FAST), AuditNet and FraudAware are co-hosting a unique Webinar Series, “Detecting and Fraud Using Data Mining Techniques”.

 

This essential “how-to” series of educational events is being offered in response to the high and rapidly increasing demand for knowledge about how to efficiently and inexpensively detect fraud using today’s top audit automation tools.

 

Attendees—comprising internal auditors, external auditors, senior financial executives, compliance officers, investigators and legal counsel—will gain a unique body of step-by-step guidance to master these tools to detect incidents of all major frauds threatening organizations today.

 

The 5-Webinar series is a cost-effective and convenient educational program that attendees will experience from the comfort of their own offices or homes—for a fraction of the price of traveling to and attending an exhausting two or three-day on-site conference.

 

The Webinar Series Topics will address Data Mining for Fraud in:

  • Accounts Receivable and Revenue Recognition

  • Payroll

  • Travel & Entertainment/P-Card

  • Fraudulent Financial Reporting of Fixed Assets and Inventory

  • Accounts Payable

KNOWLEDGE IS POWER

 

Here are some of the benefits of data mining and analysis:

  1. Eliminate control weaknesses before fraud escalates
  2. Determine cost impact of fraud
  3. Analyze complete data sets for fraud
  4. Efficient and cost-effective
  5. Ability to automate for continuous monitoring/auditing
  6. Uncovers specific fraud scenarios and schemes

Even without the IIA’s new mandatory stance on using

technology to audit for fraud, doing so is simply smart and cost-effective practice for audit shops.
 

Understandably, many auditors still shy away from technology tools for detecting fraud. However in this unique series of Webinars, you will learn that these tools—known as data mining or data analytics software—are not difficult to master.
 

And the benefits of doing so far outweigh the option of “doing things the way they’ve always been done”. This is especially true with regard to auditing for fraud. As the fraud threat worsens and auditors are increasingly responsible for detecting signs of fraud, the

use of productivity-boosting and cost-reducing fraud-audit software is rapidly becoming unavoidable.  

 

Which is why we have developed this special opportunity for you to obtain the skills to utilize these powerful tools to efficiently and reliably screen for red flags of fraud in all major business functions.

 

The five-Webinar series, Auditing For Fraud Using Data Mining Techniques will help you master the use of data-mining tools such as IDEA, ACL, ActiveData, TopCAATs and others -- in the comfort of your office.

 

After attending this series of educational events, you will be able to choose and use the right data mining software product to detect fraud in:

 

Accounts Payable ( November 3, 2010, 11AM – 1PM EST)

 

What you will learn:

  • Generate recoveries through identification of fraudulent invoices

  • Analyze transactions to pinpoint override of invoice and PO approval

  • Detect the most common symptoms of phony vendor frauds

  • Detect employee manipulation of vendor master file

  • Understand Benford's Law and how to use it to analyze suspicious patterns in large payables databases

Free Bonus Webinar: “How to Defeat the Fear of Technology in Auditing for Fraud”, Wed., December 15, 2010, 1PM – 2PM EST) Special Guest Panelist: TBA

Level: Intermediate
CPE Credits: 10.0
Course Prerequisites: None 

 

Previous Webinars in this Series Recording Available

 

Accounts Receivable/Revenue Recognition

What you will learn:

  • How to detect and prevent lapping schemes

  • The anatomy of revenue recognition schemes such as channel stuffing, fake sales, round-tripping and more

  • How to obtain the best accounts receivable and revenue data to perform optimal data mining-based audits

  • Step-by-step data mining techniques for monitoring accounts receivable and revenue recording activity

  • How data mining helps to pinpoint control weaknesses and best ways to eliminate them

Payroll

What you will learn:

  • Costliest forms of internal and external payroll fraud

  • Who commits payroll fraud

  • Gathering necessary data for effective payroll fraud data analysis

  • Audit automation techniques for detecting red flags of major payroll frauds

  • Using data analytics results to improve payroll fraud preventative controls

Travel & Entertainment and P-Card Fraud

 

What you will learn:

  • Employee T&E scams you’ve never thought of

  • Surprising statistics about P-card fraud perpetrators

  • How to extract data needed to detect T&E spending anomalies

  • Most effective data analytics tests to catch T&E fraudsters

Fraudulent Financial Reporting of Fixed Assets and Inventory (October 6, 2010, 11AM -1PM EDT)

 

What you will learn:

  • Phantom inventory: How to know what’s really in your warehouses

  • Case study: How managers conceal embezzlement by falsifying inventory values

  • Ensuring that inventory documentation and data are accurate and complete

  • Easy but effective data analytics tests that reveal red flags of inventory fraud

  • What to do once your data analytics work has uncovered signs of inventory fraud

 

 

 

Your Presenter:

 

Angela Clancy, CA, Manager, RGL Forensics. Angela has over six years of international experience in investigative accounting which includes her current responsibilities as a Manager in forensic accounting and consulting firm of RGL Forensics.

 

Throughout her career she has utilized electronic data analysis to effectively to conduct a variety of accounting fraud investigations. She has been responsible for the development of training programs to assist in the application of investigative data management techniques.

 

Angela began her career in Melbourne, Australia where she focused her practice on the quantification of financial assets for a variety of industries. Her experience there included a concentration on mergers and acquisitions, fraud  investigation, due diligence assignments and compliance audits. Ms. Clancy joined RGL Forensics in 2008 and has since focused her attention on RGL’s fraud, insurance and litigation cases. This experience has seen her involved in, among other things, mortgage fraud,  vendor fraud and fraud kickback schemes.

 

Your Moderators:

 

Jim Kaplan CIA, CFE. Jim is Founder and CEO of AuditNet® the largest Internet portal for the audit, financial and compliance community. Jim has over 26 years of experience in auditing government and public school operations.  He is the 2007 recipient of the IIA’s Bradford Cadmus Memorial Award and the 2005 Association of Local Government Auditors Lifetime Membership Award. Jim has contributed to leading professional publications including a regular column in the Internal Auditor Magazine and numerous articles in the Internet Bulletin for CPA’s and Internal Auditing Alert.  He is the author of The Auditor’s Guide to Internet Resources 2nd Edition, published by the IIA.

 

Jim holds a Master of Science in Accounting from the American University in Washington, D.C.  He is an active member of the Institute of Internal Auditors (IIA), the National Association of Local Government Auditors (N.A.L.G.A.) and the Association of Certified Fraud Examiners.

 

Peter Goldmann MSc, CFE. Peter is the founder and President of White-Collar Crime 101 LLC, publishers of White-Collar Crime Fighter, the leading monthly monthly newsletter for internal auditors, controllers, corporate counsel, financial operations managers and fraud investigators., ex-convicts and auditors.

 

White-Collar Crime 101 also developed the leading employee fraud awareness training program, FraudAware, a widely-used workshop and E-learning training program designed to educate employees at all levels in how to detect, prevent and report incidents of fraud or suspicious conduct and take action by using the organization’s Hotline or other confidential reporting channels.

 

Peter is a member of the Editorial Advisory Committee of the Association  of Certified Fraud Examiners and a regular columnist for the ACFE’s monthly newsletter, The Fraud Examiner. He has appeared on The Wall Street Journal this Morning, Fox Business News and The New York Times. He is the author several books on fraud including Detecting and Preventing Fraud in Accounts Payable (IAPP), Anti-Fraud Audit and Control Workbook and Fraud in the Markets: How it Happens and How to Fight It (both by Wiley & Sons).

 

He holds a BA from the University of Michigan and a Masters from the London School of Economics.

 

For the 2011 series click here!

You will be able to attend all the scheduled Webinars. If you signed up after the Webinars have taken place you will have access to download the recorded Webinars, presentations and supplemental material.

 

To sign up for these events click on the above links or call

AuditNet 703-255-3388 or

1-800-385-1625 (US Only)


 

 

FraudAware is registered with the National Association  of State Boards of Accountancy (NASBA), as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org

 

 

Downloadable recordings and slides for past Webinars available at discounted rates at AuditNet