– Introduction
– Fraud Risk Governance
1. Roles and Responsibilities
• BOD, Audit Committee, Management, Staff, Internal Auditing.
2. Fraud Risk Management Program Components
• Commitment.
• Fraud Awareness.
• Affirmation Process.
• Conflict Disclosure.
3. Fraud Risk Assessment.
4. Reporting Procedures and Whistleblower Protection.
5. Investigation Process.
6. Corrective Action.
7. Process Evaluation and Improvement (Quality Assurance).
8. Continuous Monitoring.
Fraud Risk Assessment
1. Fraud Risk Identification
• Identify a Risk Assessment Team.
• Fraud Risk Identification.
• Risk of Management’s Override of controls
• Population of Fraud Risks (Fraudulent Financial Reporting, Misappropriation of
Assets & Corruption).
2. Evaluation of Fraud Risk Identification.
3. Prioritize Fraud Risk.
4. Evaluate Existence / Effectiveness of Controls.
5. Evaluating Mitigating Controls.
6. Risk Treatment.
7. Documenting Fraud Risk Assessment.
➢ Fraud Prevention
1. Fraud Preventive Controls
• Human Resources Procedures.
• Authority Limits.
• Transaction – Level Produres.
2. Documentation of Fraud Prevention Techniques.
3. Assessing the Organization’s Fraud Prevention.
4. Continuous Monitoring of Fraud Preventive Controls.
Fraud Detection
1. Fraud Detective Controls
• Whistleblower Hotines.
• Process Controls.
• Proactive Fraud Deteciton Procedures.
2. Documentation of Fraud Detection Techniques.
3. Assessing the Organization’s Fraud Detection.
4. Continuous Monitoring of Fraud Detection.
➢ Fraud Investigation and Corrective Action
1. Fraud Investigation and Response Protocols
• Receiving The Allegation.
• Evaluating The Allegation.
• Investigation Protocols.
2. Conduction The Investigation.
3. Reporting The Results.
4. Corrective Action.
5. Measurement.
– Case Study.