Every organization faces the risk of financial loss due to fraud, but maintaining an effective audit function can help mitigate that risk. Auditors, both external and internal, must have a thorough knowledge of fraud detection and prevention to effectively fulfill their mission. Additionally, one of the best measures that any organization can take to mitigate the loss associated with fraud is to equip employees with the skills and techniques needed to detect and prevent it. Maintaining an in-depth knowledge of fraud and how it can be detected and prevented is essential to maintaining the financial integrity of any organization, large or small.
The Government Accountability Office (GAO) has found that billions in Federal grant awards are susceptible to waste, fraud, and abuse. Grant recipients and other grants personnel must be vigilant in detecting and preventing fraud in grant administration. You will gain an understanding of potential fraud risks inherent in various programs and entities, and learn techniques to mitigate those risks. Case studies will enhance your learning, enabling you to practice identifying and preventing fraudulent activities. This is an elective course in all tracks of the GMCP™.
Who Takes This Course: Federal and Pass-Through Entity personnel responsible for overseeing grant recipients/subrecipients and recipient personnel responsible for grant project administration will benefit from this course. This course is designed for auditors at any level of government as well as program managers and financial managers responsible for eliminating waste, fraud, and abuse in Federal programs.
Course Format: Lecture, discussion, hands-on practical exercises, and case studies.
Learning Objectives
- Conduct a risk assessment of a sample Federal program
- Create an effective fraud prevention monitoring process
- Evaluate and test an entity’s internal controls for vulnerabilities
- Analyze case studies for actions that could have prevented fraud or detected it earlier
- Review a sample recipient to determine whether fraud is occurring
- Develop action item lists to improve fraud monitoring
- Explain the increasing importance of fighting fraud within the federal government, the functions a forensic audit serves, and the various roles the auditor must assume in conducting a forensic audit
- Explain the federal laws, auditing standards, and control techniques that are relevant to a forensic audit, and decide upon appropriate control measures to counteract fraud occurrences
- Explain common fraud schemes and apply the best internal control measures to counteract the fraud risk
- Identify indicators for heightened fraud risk and assess risks present through internal control deficiencies
- Apply various evidence-gathering techniques used to detect fraud
- Describe the job of a forensic auditor in legal and court involvement
Course Topics
Fraud in the Grants Context
- Fraud in Federal Financial Assistance
- Influences Driving Focus on Fraud Prevention
- What Is Fraud?
Fraud Prevention: Risk Assessments
- Understanding the Mind of a Fraudster
- Risk Assessments
Fraud Prevention: Policies and Procedures
- Internal Controls
- Management’s Role in Deterring Fraud
- Communication and Training
Fraud Detection: What Are You Looking for?
- Who is Likely to Notice Red Flags?
- Types of Red Flags
- Challenges to Detecting Fraud
Fraud Detection Tools
- Site Visits
- Desk Reviews
- Audits
- Financial Reconciliations
- Exercise: Bank Reconciliation Scenario
- Data Analytics
Actions to Take When Fraud Is Suspected or Detected
- Reporting Suspected Fraud
- Sanctions
- Remedies to Resolve Issues That Led to Fraud
Introduction to Forensic Auditing
- Key Fraud Terms Defined
- The Relationship of a Normal Audit to Fraud
- Functions of a Forensic Audit
- Legal Roles of the Forensic Auditor
- The Fraud Triangle
- The Three Types of Fraud
- The Nature of Fraud
- Challenges to Detecting Fraud
- Profile of a Fraudster—Some Key Statistics
- The Fraudster’s Journey
- The U.S. Government Environment
- Economic Impacts of Major Fraud
- Scope of Fraud Losses and Government Improper Payments
- Fraud Enablers
Federal Laws, Internal Controls, and Audit Standards Relating to Fraud
- Key Legislation to Combat Fraud, Waste, and Mismanagement
- Generally Accepted Government Auditing Standards (GAGAS)
- Other Fraud Entities or Organizations
- Internal Controls and Fraud
Assessing Fraud Risks
- The Foundation for Fraud Detection
- Fraud Risk Management Process
- Exercise: Fraud Risk Assessment
The Forensic Audit Process
- Planning Phase
- Forensic Audit Fieldwork and Testing Phase
- Primary Areas of Investigation
- Fraud Red Flags
- Data Mining
- Audit Report Phase
Understanding Fraud Schemes
- Fraud Identification and Detection Guidance
- Fraud Red Flags and Fraud Schemes
- Exercise: Forensic Auditing
Fraud Detection Capstone
- Exercise: Auditing Fraud Detection Techniques Capstone
March 27 – March 29, 2023 | 9:00 AM – 5:00 PM EST | Internet, EST | Virtual | $4,999
May 17 – May 19, 2023 | 9:00 AM – 5:00 PM | Internet, EST | Virtual | $4,999