F R A U D P R E V E N T I O N

Sessions will cover characteristics of fraudsters, as well as leading prevention, detection and investigation practices.

CS 1-4
Recovering Millions and Breaking Tradition
Abdulqader Ali, Dubai World

A review of the challenges faced by an internal audit department when it conducts investigations related to fraud. The presenter will provide insights on how to successfully establish a Fraud Prevention Department (FPD) and share the advantages this department has brought to his organization by becoming a ‘profit center’ - with millions in recoveries generated from the cases handled. Also, statistical information on fraud will be presented which will highlight the challenges from the inception of a case until it is finally resolved and put to rest.

Participants of this session will:

Understand how to establish a Fraud Prevention Department.
Review statistical information on fraud related to challenges.
Review lessons learned and other leading-practice models.

FIELD OF STUDY: AUDITING

CS 2-4
Why do People Turn to the Dark Side?
Deanna Sullivan, Sullivan Solutions

Almost daily we learn about another company whose employees have decided to take matters into their own hands and increase their take-home pay or the company’s profits through creative accounting and other means not sanctioned by GAAP or the SEC. What has caused this phenomenon to occur and what should companies be doing to change the tide? What can we as internal auditors do to help identify weaknesses in the system and improve our corporate culture?

In this session, participants will:

Share experiences with the presenter from organizations such as Enron and describes how the system allowed them to turn to the dark side.
Understand how the use of the COSO Internal Control Framework can help identify issues with corporate governance and ethics in your organization today.
Identify the primary red flags of fraud and discuss how to strengthen your control environment.
Participate in an ethics test and see how you stack up against our corporate fraudsters – or learn what might cause you to turn to the dark side.

FIELD OF STUDY: BEHAVIORAL ETHICS

CS 3-4
Investigative Interviewing – An Auditor’s Guide
Larry Rosipajla, Forensic Alliance

Everyone has at one point or another conducted an interview. Auditors cannot begin their planned procedures until they conduct interviews of a variety of people in an organization. It is important for them to understand the functions of people in the organization and processes they are to rely upon in the performance of the audit. However, when it comes to interviewing subjects in an investigation, interviewing takes on a whole new meaning. It becomes a game of psychological warfare, and if your interviewer is not trained in the art of conducting an admission-seeking interview, you do not have a chance of accomplishing your objectives.

After this session, participants will be able to:

Implement tips for increasing your success in conducting investigative interviews, including how to structure an interview and select the best interview questions.
Engage in a discussion about whether there is really anything to interpreting body language and other physical characteristics emitted by the target that could indicate he or she is lying.
Discuss whether anyone else should be present besides the target and the interviewer.
Understand legal issues of which they should be aware.

FIELD OF STUDY: AUDITING

CS 4-4
Improve your Interviewing Skills through Linguistic Lie Detection
Nejolla Korris, The Sponsorship Group Ltd.

Identifying deception is a crucial component of any audit or investigation. Knowing what is truthful is critical to the auditor, fraud examiner and investigator. This session highlights several examples from high-profile media cases and shows you how a truthful person speaks vs. an untruthful person. This introduction to Linguistic Lie Detection will change the way you interpret what others say.

After this session, participants will be able to:

Enhance their interviewing skills.
Understand Linguistic Lie Detection.
Review case studies on fraud investigations.

FIELD OF STUDY: AUDITING

CS 5-4
Construction Fraud: Bringing Value at all Stages
Denise Cicchella, Auspicium

This session will introduce the participant to the different phases of construction and what happens in each phase. We will discuss the obvious risks in these areas and recommended controls. We will also talk about fraud that has been experienced in the past and how an active role by audit would have prevented or detected the fraud before a domino effect.

After this session participants will:

Have a better idea of how construction projects work.
Learn the component risk of project management.
Be introduced to skills that will help them control construction projects or other large scale projects in their organizations.
A thorough understanding of potential frauds in the construction arena.
Be able to identify fraud red flags and mitigating strategies.

FIELD OF STUDY: AUDITING

CS 6-4
Harvest Value from Internal Auditing: Why and How to Embed Fraud Risk Management
Mark Warner, General Motors Acceptance Corp.

We will review several fraud investigations identified by the most typical methods either mistake, or accident. The idea that the frauds were not detectible early in the process is completely incorrect. Simple standard audit procedures would have identified the problem and reduced the losses significantly. Internal controls with imbedded fraud prevention were either not in place or not followed.

In this session participants will learn how to:

Identify the basic drivers of fraud for both management and non-management.
Describe the basic steps in an investigation.
List the preventive measures which can be imbedded into standard audit procedures.
Describe common errors which contribute to fraud.

FIELD OF STUDY: AUDITING

CS 7-4
Sleeping with the Enemy: When the Fraudster is Inside the Board of Directors (Panel Discussion)
Marjorie Maguire-Krupp, Coastal Empire Consulting (Moderator)
Guillermo Casal, IFPC-IGI International Group
Sridhar Ramamoorti, Infogix
Michael Emmert, Navigant Consulting

We envision a particularly pernicious and diabolical scenario: when the Board of Directors (Supervisory Board), “hand-in-glove with management,” aids and abets executive management fraud; such an intimate, “cozy” but “toxic” relationship is dubbed by some as “sleeping with the enemy.”

In this session participants will learn:

How internal auditors, in different environments, can help deter, or at least identify, communicate and follow up on “C-Level suite fraud” either perpetrated, or covered up, by the Board.
The signs of fraud at the Board level of an organization.
The steps internal audit should complete if Board-level fraud is implied or suspected.

FIELD OF STUDY: AUDITING