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, [email protected]
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
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 3
“Dixon’s Girl”$53mm fraud in Dixon IL
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 4
Stole > $5,000,000
each year
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 5
How she did it …
…How they missed it
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 6
Capital Development Fund Check
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 7
RSCDA Check
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 8
Bank Statement – RSCDA account
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 9
Closer look reveals personal payments
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 10
Fifth Third Bank Signature Card 2011
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 11
Authorizing Resolution…Signed
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 12
So How Do You
Protect Yourself
from a Rita?
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 13
YOU MUST CHANGE
YOUR VIEW OF
TRUST
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 14
TRUST…yes
BUT…
VERIFY
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 15
The People
who defraud you
Are those you already
Know and Trust
Above all else...Remember this!
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 16
Common Myth # 1
“We hire honest people
so we don’t need to
worry.”
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 17
Common Myth # 2
Rely on the
external auditors
to find fraud
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 18
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
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 19
“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.”
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 20
Closing Thoughts
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 21
Questions?
Tom Golden Speaks, Ltd.www.tomgoldenspeaks.com
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 22
• 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
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 23
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….
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 24
www.danariely.com
Predictably Irrational
The Honest Truth about Dishonesty
See him on www.Ted.com
Author: Dan Ariely
#IIACHI
April 15, 2013 IIA Chicago Chapter 53rd Annual Seminar 25
Questions?
Tom Golden Speaks, Ltd.www.tomgoldenspeaks.com
