IIA Chicago Chapter 53rd Annual Seminar Seminar...IIA Chicago Chapter 53rd Annual Seminar April 15,...

transcript

IIA Chicago Chapter 53rd Annual SeminarApril 15, 2013, Donald E. Stephens Convention Center

@IIAChicago

#IIACHI

Trust but VerifyWhat Auditors Can Learn from the

Rita Crundwell Fraud in Dixon, IL

Tom GoldenTom Golden Speaks, Ltdtom@tomgoldenspeaks.com

www.tomgoldenspeaks.com

Tom Golden Speaks, Ltd.

#IIACHI

April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 2

My Goal for You Today

To change your view of

Trustand the basis upon which

it is granted

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“Dixon’s Girl”$53mm fraud in Dixon IL

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Stole > $5,000,000

each year

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How she did it …

…How they missed it

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Capital Development Fund Check

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RSCDA Check

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Bank Statement – RSCDA account

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Closer look reveals personal payments

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Fifth Third Bank Signature Card 2011

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Authorizing Resolution…Signed

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So How Do You

Protect Yourself

from a Rita?

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YOU MUST CHANGE

YOUR VIEW OF

#IIACHI

TRUST…yes

BUT…

VERIFY

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The People

who defraud you

Are those you already

Know and Trust

Above all else...Remember this!

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Common Myth # 1

“We hire honest people

so we don’t need to

worry.”

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Common Myth # 2

Rely on the

external auditors

to find fraud

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It's not their job

Audits are too predictable

Auditors are not authenticators

Auditors have no experience

Auditors have no training

Why External Auditors Won’t Find Fraud

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“The detection of fraud is the most

important portion of the Auditor’s

duties, and there will be no disputing

the contention that the Auditor who is

able to detect fraud is a better man

than the auditor who cannot.”

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Closing Thoughts

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Questions?

Tom Golden Speaks, Ltd.www.tomgoldenspeaks.com

#IIACHI

• We believe there are good people …and

there are bad people

• Fact of the matter is that there is a little

bad in most of us

• Given the Opportunity Most people will

steal…just a little

Ariely’s Findings

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Much dishonesty involves cheating that is one step

removed from cash (e.g. expense reports, stock

options)

When we get into situations where our personal

financial benefit stands in opposition to our moral

standards, we are able to "bend“ reality, see the

world in terms compatible with our selfish interest,

and become dishonest.

Once they begin thinking about honesty, they stop

cheating ...completely

Specifically….

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www.danariely.com

Predictably Irrational

The Honest Truth about Dishonesty

See him on www.Ted.com

Author: Dan Ariely

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Questions?

Tom Golden Speaks, Ltd.www.tomgoldenspeaks.com

IIA Chicago Chapter 53rd Annual Seminar Seminar...IIA Chicago Chapter 53rd Annual Seminar April 15,...

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