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Forensic Accounting for Fraud

Being offered twice a quarter on Thursdays at 10:00 a.m. to 12:00 noon Central Time.

Fraud is a serious problem!

Organizations need to prepare to investigate issues using forensic accounting techniques to provide reporting to oversight and compliance management.

Any Internal Audit function needs support management's efforts to establish a culture that embraces ethics, honesty, and integrity. Internal Auditors assist management with the evaluation of internal controls used to detect or mitigate fraud, evaluate the organization's assessment of fraud risk, and are involved in any fraud investigations.


What is forensic accounting and how does the Internal Audit function approach using forensic accounting techniques in fraud detection and investigation?

This CPE Event provides an overview of the concepts along with the techniques and processes used by forensic accounting to identify whether fraud has occurred.

This timely, CPE training seminar is designed for the accountant or internal auditor who has to be aware of how to use a forensic accounting approach in their audit function.

The cost of this internal audit training course is $120.00 per attendee.

Each attendee will receive 2 CPE Hours (YB). A certificate of completion will be provided.

Program Level of Understanding: Intermediate
Prerequisites: None
Advance Preparation: None
Delivery Format: Group Internet Based
NASBA Field(s) of Study: Auditing
CPE Credits: 2, based on 50 minutes of instruction per hour

CPE Event Highlights

The seminar reviews and answers the following questions:

  • Internal Control Principles and Fraud Management

  • Forensic Accounting Skill Set

  • Understanding the people that commit fraud

  • Overview of fraud classification

  • Financial Statement Fraud Analysis

  • "Best Practice" Anti-Fraud Controls

  • Using Software Tools to examine "Big Data"

  • Using Software Tools to examine "Metadata"

Learning Objectives

Attendees will:

  • Understand how forensic accounting is part of the internal auditor function.

  • Learn how to identify fraud risks

  • Review best practices in fraud prevention and detection programs

  • See what software tools are available for the forensic project.


Key Concepts on the Agenda

Section 1 - Internal Control Frameworks for Fighting Fraud

  • What is Corporate Fraud?

  • What is Forensic Accounting?

  • Forensic Accounting Skill Set

  • Forensic examination services

  • COSO "Fraud Risk Management" Model

  • External Auditor's Responsibilities

Section 2 - The Fraud Perpetrators

  • Things that do not prevent fraud.

  • "Violators of Trust"

  • "The Fraud Triangle"

  • Who are the "Fraud Perpetrators"?

  • Where is the "Fraud"?

  • Behavioral Red Flags

  • Fraud Discovery

Section 3 - Fraud Classification

  • Asset Misappropriation

  • Corruption

  • Financial Statement Fraud

Section 4 - Financial Statement Fraud Schemes

  • Top Reasons to cook the Books!

  • Methods for testing for fraud

  • Examples of how financial fraud is committed

  • Forensic tests of financial transactions

Section 5 - Preventing and Detecting Financial Statement Fraud

  • Prevention

  • Detection

  • Forensic Techniques

  • Forensics: Financial Ratio Analysis

  • Forensics: "Monday Tracing"

  • Benford's Law of Numbers

  • How to think like Mark Nigrini, PhD, MBA

  • Computer Forensics

Section 6 - "Best Practice" Anti-Fraud Controls

  • How are frauds concealed?

  • Having a process to report fraud and other activities

  • Fraud Policy

  • Corporate Code of Conduct

  • Segregate Incompatible Duties

  • Internal Audits

  • Confirmations

  • Physical Security

  • Human Resources Policies

  • Vendor Management

  • "Tone at the Top"

  • Information Security

  • Controls over Money Laundering (AML)

Section 7 - Software Tools and Techniques for Fighting Fraud

  • Fraud Examination Software

  • Forensic, Data Extraction and Analysis Tools

  • Case Management Software

Section 8 - Creating a Fraud Risk Assessment

  • The Heat Map - 80% - 15% - 5% Rule

  • Where in the organization's functions will the fraud occur?

Section 9 - Forensic Examinations

  • Electronic Data Recovery (EDR) Model

  • Metadata Extraction

  • Metadata Extraction Tools for PDF files

  • Metadata Extraction Tools for Image files

  • Metadata Extraction Tools for general files

  • History and Custody of Documents and Files

  • Document Examination

  • Social Media Research

  • T&E Forensic Analysis Example

Section 10 - Summary and Wrap-up