Post on 18-Aug-2018
transcript
Define Fraud
Identify Fraud Characteristics
Tone at the Top & Easy Cheats
Risk Assessment Tools
The Next Step
A material false statement
Knowledge that the statement was false when it was uttered
Reliance on the false statement by the victim
Damages resulting from the victim’s reliance on the false statement
3
Global survey
Measuring the costs of occupational fraud
5 percent lost to fraud
$3.5 trillion worldwide
5
6
3.2%
17.6%
37.5%
41.6%
0% 10% 20% 30% 40% 50%
Other
Owner/Executive
Manager
Employee
Percent of Cases
Posi
tion
of
Per
pet
rato
r
7
$100,000
$573,000
$182,000
$60,000
$0 $200,000 $400,000 $600,000
Other
Owner/Executive
Manager
Employee
Median Loss
Posi
tion
of
Per
pet
rato
r
9
1.2%
5.6%
5.9%
87.3%
Other
Had prior convictions
Charged but not convicted
Never charged or convicted
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Per
pet
rato
r’s
Cri
min
al
His
tory
Percent of Cases
10
1.1%
1.1%
1.5%
1.9%
3.0%
3.3%
4.1%
4.8%
7.0%
14.4%
14.6%
43.3%
0% 10% 20% 30% 40% 50%
Other
IT Controls
Confession
Surveillance/Monitoring
Notified by Police
External Audit
Document Examination
Account Reconciliation
By Accident
Internal Audit
Management Review
Tip
Percent of Cases
Det
ecti
on
Met
ho
d
ACFE.com
Wells, JT. 2014. Principles of Fraud Examination. Wiley.
ACFE. 2014. Report to the Nations- on Occupational Fraud and Abuse.
Albrecht, WS. 2012. Fraud Examination. Cengage.
Dr. Patricia L. KeetonFour K GroupPattiKeeton@aol.com410-603-4113443-593-8301
Dr. Thomas G. Keeton, CPA, CFEFour K Grouptgkeeton@Salisbury.edu410-603-4117443-593-8301