Fraud Auditing, Detection, and Prevention Blog

Leonard W. Vona

Leonard W. Vona has more than 40 years of diversified fraud auditing and forensic accounting experience. His firm, Fraud Auditing, Inc., advises clients in areas of fraud risk assessment, fraud data analytics, fraud auditing, fraud prevention and litigation support.
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Recent Posts

Anatomy of a Real-life Shell Company Pass-Through Scheme

Mar 20, 2024 11:39:15 AM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Risk Identification, ...

This story is about a passthrough scheme. It is my opinion that most large companies have one of more pass-through schemes occurring. What makes it difficult to detect or prevent these schemes is that the scheme will comply with all of your controls. Your company has received the goods or services. Therefore, your ability to detect these schemes is predicated on your understanding of how these schemes occur and what they look like.

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Mastering Shell Company Detection: Steps for Fraud Auditors (Part 8)

Feb 13, 2024 4:37:48 PM / by Leonard W. Vona ...

In our next two blogs concerning shell companies, I will highlight real-life shell company schemes detected by our firm using the fraud audit methodology discussed in our blogs. Remember, all these schemes were found in large publicly traded companies using the fraud audit methodology discussed in the last seven blogs. I have changed the names of the companies to respect the confidentiality of our clients. It is important to note that there were no allegations, no whistleblowers, and no leads.

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Mastering Shell Company Detection: The Written Report (Part 7)

Jan 18, 2024 7:29:00 AM / by Leonard W. Vona ...

In this series of blogs, we are looking at the practice of using a fraud audit to detect shell company schemes occurring in an accounts payable file. Because the practice of effective fraud auditing is grounded in knowledge, we will start with a knowledge section and then delve into a demonstration of the fraud audit process.

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Mastering Shell Company Detection: Is Their Credible Evidence to Perform a Forensic Exam?

Dec 12, 2023 9:49:22 AM / by Leonard W. Vona posted in Fraud Auditing, Fraud Based Approach, ...

 

In this series of blogs, we are looking at the practice of using a fraud audit to detect shell company schemes occurring in an accounts payable file. Because the practice of effective fraud auditing is grounded in knowledge, we will start with a knowledge section and then delve into a demonstration of the fraud audit process.

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Mastering Shell Company Detection: Practical Steps for Fraud Auditors: Part 5

Nov 15, 2023 12:14:12 PM / by Leonard W. Vona posted in Fraud Risk Statements, Fraud Schemes, ...

In this series of blogs, we are looking at the practice of using a fraud audit to detect shell company schemes occurring in an accounts payable file. Because the practice of effective fraud auditing is grounded in knowledge, we will start with a knowledge section and then delve into a demonstration of the fraud audit process.

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Mastering Shell Company Detection: Practical Steps for Fraud Auditors: Part 4

Oct 16, 2023 9:18:00 PM / by Leonard W. Vona posted in Fraud Auditing, Fraud Based Approach, ...

 

In this series of blogs, we are looking at the practice of using a fraud audit to detect shell company schemes occurring in an accounts payable file. Because the practice of effective fraud auditing is grounded in knowledge, we will start with a knowledge section and then delve into a demonstration of the fraud audit process.

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Mastering Shell Company Detection: Practical Steps for Fraud Auditors Part 3

Sep 16, 2023 7:30:00 AM / by Leonard W. Vona posted in Fraud Auditing, Fraud Based Approach, ...

 

In this series of blogs, we are looking at the practice of using a fraud audit to detect shell company schemes occurring in an accounts payable file. Because the practice of effective fraud auditing is grounded in knowledge, we will start with a knowledge section and then demonstrate the fraud audit process.

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Mastering Shell Company Detection: Practical Steps for Auditors Part 2

Aug 14, 2023 5:32:05 PM / by Leonard W. Vona posted in Fraud Risk Statements, Fraud Auditing, ...

In this series of blogs, we are discussing how auditors can detect shell company schemes that are occurring in their accounts payable files. Because the practice of effective fraud auditing is grounded in knowledge, each blog will have a knowledge section as well as a practical audit section. (This blog will not discuss how organized crime groups use shell companies to perpetrate criminal activities.)

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Using Fraud Auditing to Detect Shell Company Fraud Schemes

Jul 14, 2023 8:20:42 AM / by Leonard W. Vona posted in Fraud Auditing, Concealment Strategies, ...

Using Fraud Auditing to Detect Shell Company Fraud Schemes

The last two blogs were an esoteric discussion on fraud auditing using either a principal-based approach or a rule-based approach. With this blog, we'll launch into the practical use of fraud auditing. By way of example, we will look at how to detect shell company fraud schemes perpetrated against your company. Remember, our goal is to make audit the number one reason for fraud detection.

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Principles or Rules for Fraud Auditing?

Jun 15, 2023 6:39:42 PM / by Leonard W. Vona posted in Fraud Auditing, Payroll Fraud, ...

In accountancy, there are frequent discussions about a principle-based approach to GAAP vs. a rule-based approach. That is an equally valid discussion for fraud auditing. As you read, I hope you will reflect on whether a principle or a rule-based approach would be of more benefit to your organization.

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