Fraud Detection and Control in a Donor Funded Project Course

Introduction

It is estimated that one in three organizations suffer from the effect of fraudulent activity, and recent developments in regulation mean that fraud can have significant consequences for managers and senior executives. Fraud can damage an organization’s reputation as well as reduce its profit and value. Many organizations only think about fraud risk when they have already been affected, but a more proactive approach is needed to prevent and detect fraud.
This one-week course provides an insight to the main practicalities relating to preventing and detecting fraud. The course begins by exploring the main types of fraud and the implications of fraud for an organization and its managers and senior executives. The course then becomes practical - focusing on how to spot signs of fraud, the methods involved in forensic investigations to quantify the impact of fraud, and the policies and procedures that should be put in place to prevent the occurrence of fraud.

Have you put measures to safeguard your organization resources from misuse, fraud and misappropriation? Have you instituted Internal Controls in your organization? Are you losing money and other resources due to weak controls, fraud, and misuse? As a Director, Manager or even business owner, how do you institute internal controls in your organization?

Weak internal controls expose organizations resources to exploitation. Excessive internal controls reduce productivity, increase the complexity of everyday transactions, and add no value to the organization's activities. Designing and implementing an effective system of Internal Control for your organization or department is an important step towards safeguarding your resources and ensuring efficient utilization. Directors, Senior Managers, Supervisors and even business owners must identify the key internal control exposure areas in your organizations and institute effective control measures as a way of ensuring that organizational resources are safeguarded.

Course duration

5 days

Who should attend?

• Directors
• HODs
• Managers
• Supervisors
• Any staff overseeing a function/ unit
• Finance staff
• Internal Audit
• Risk & Compliance
• CEOs
• CFOs and Business owners

Course Objectives

• Explain the concepts and principles of internal controls
• Appreciate the true cost of financial fraud, both in relation to specific businesses/organizations and society as a whole
• Describe the traits and behavior of those who commit fraud
• Apply in-depth investigation of fraud detection techniques
• Conduct gathering of intelligence, case planning, establishing goals and ultimately initiating a case.
• Gather evidence that can prove or disapprove a case
• Plan and conduct effective interviews
• Assess risk factors and best practices in risk prevention
• Identify different types of cyber-data and crime
• Understand the motivation for people to carry out fraud.
• Recognize the warning signs of different types of fraudulent activity.
• Appreciate the consequences of fraud for the organization and its managers and directors.
• Recommend policies and procedures to combat fraud.
• Appreciate the need for good governance, strong leadership and sound risk assessment within an organization.
• Understand the role of experts including forensic accountants.
• Consider the legal implications of fraudulent activity.

Course outline
Types of Fraud and the Dynamics and Implications of Fraudulent Activity

• Examples of fraud including theft of assets, bribery, money laundering and fraudulent financial reporting
• The causes of fraud – motivation and opportunity
• The consequences of fraud – quantifying losses and legal implications
• The responsibilities of directors and managers

Causes of Fraud

• Pressure
• Opportunity
• Rationalisation

Fraud Detection Methods

• Regression
• Decision tree
• Neural network
• Bayesian networks
• Supported vehicle machines

Fraud Detection of Financial Statements

• Vertical financial statement analysis
• Horizontal financial statement analysis
• Comparative ratio analysis

Recognizing Signs of Fraud and Investigating Fraud

• Indicators of fraudulent activity
• Identifying “red flags” for different types of fraud
• Performing a fraud risk assessment
• Forensic investigations into fraudulent activity

Preventing Fraud – Risk Management and Internal Controls

• Building a strong governance structure and risk management function
• Designing and performing appropriate internal controls
• Monitoring the control environment
• Reviewing financial information
• The role of internal audit

Using Excel for Detecting Fraud & Data Inconsistencies

• Largest growth test & Largest subsets test
• Relative size factor test, SSS test & SS Different test
• Subset number duplication
• Calculating correlations & Time-Series analysis

Fraud schemes and controls

• Financial statements & Corruption schemes
• Assessing the Risk of Fraud & Its Factors
• Keys to Effective Fraud Investigation
• Fraud detection & response
• Revenue Recognition Detection Techniques

Internal Controls

• Internal Control as a Positive Process
• Pressure on Internal Controls
• Systems Development and Risk to Controls
• COSO – Internal Control Integrated Framework
• 3 Types of Control – Preventative, Detective and Corrective
• Information Security

Fraud Prevention

• Creating Preventive Environment
• Enforcement of Ethics and Fraud Policies
• Segregate duties
• Monitor controls
• Encourage the culture of ethics and accountability
• Encourage annual external examination of financial statements
• Devise a strong control system
• Spread awareness

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion, and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirements. For further inquiries, please contact us on Email: [email protected] Tel: +254 721 331 808

Certification

Participants will be issued with Upskill certificate upon completion of this course.