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.
Find me on:

Recent Posts

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.

Read More

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.

Read More

Establishing Principles to Make Audit the #1 One Reason for Fraud Detection

May 10, 2023 8:11:18 AM / by Leonard W. Vona posted in Fraud Auditing, Fraud Detection, ...

This is the third blog looking at the state of the auditing profession. In the first blog, we looked at what has changed as companies have grown and gone global. Last month we considered the use of words and the significance of precision. And in this blog, we'll delve into principles that form the bases for our work.

Read More

Examining the Words the Audit Profession Uses to Describe Responsibilities

Apr 19, 2023 5:17:13 PM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Auditing, ...

This is the second of three blogs looking at the state of the auditing profession. In the first blog, we looked at what has changed as companies have grown and gone global. In this article, we’re considering the use of words and the significance of precision.

Read More

The State of the Auditing Profession in 2023 - Part 1

Mar 20, 2023 5:08:11 PM / by Leonard W. Vona posted in forensic accounting, Fraud Auditing, ...

As business systems have grown more complex and moved into a digital world, they’ve created more opportunities not only for fraud but also for uncovering fraud. It is my contention that auditing should be the number one reason for exposing fraud. And that requires a shift in mindset as well as the right techniques.

Read More

Fraud Audit Lessons from the Corporate Transparency Act

Feb 13, 2023 7:45:00 AM / by Leonard W. Vona posted in Fraud Auditing, Fraud Triangle ...

Throughout my blogs, I have stressed the importance of knowledge. For this month’s blog, I am sharing what I believe to be valuable information as you think through your company's fraud prevention and detection policies. We will be taking a look at the recently approved Corporate Transparency Act.  I would strongly suggest that you educate yourself and then determine if your company’s policies and internal controls need to be updated.

Read More

How to Use Fraud Risk Statements in a Fraud Detection Program

Jan 30, 2023 7:04:28 AM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Risk Statements, ...



We looked at how to create fraud risk statements using the payroll function in the last blog. In this blog, we’ll look at how to apply the fraud risk statement in a fraud audit program.

But first, the Trivia answers:

Was Christmas ever illegal?

Read More

Illustrating Fraud Action Statements Using the Payroll Function

Dec 16, 2022 7:39:28 AM / by Leonard W. Vona posted in Fraud Risk Statements, Fraud Auditing, ...

 

In this blog, we're looking at how to write a fraud action statement using the payroll function as a way to understand the starting process for a fraud audit.

But first, here are the answers for the trivia from the last blog:

1. What was the biggest corporate lawsuit settlement? $206 billion, paid by the nation’s four largest tobacco companies.

 2. Excluding the tobacco lawsuit, what is the aggregate dollar value of the next 10 large corporate settlements? $88 billion dollars.

Read More

How to Write the Fraud Action Statement of the Fraud Risk Statement

Nov 14, 2022 7:15:21 PM / by Leonard W. Vona posted in Fraud Risk Statements, Fraud Auditing, ...

In this blog, we're going to talk about the Fraud Action Statement, the "what" part of the Fraud Risk Statement, but first the answers to the fraud trivia from the last blog:

What was the first recorded financial collapse? Medici Bank went insolvent in 1494 due to extensive spending. Check out Business Insider’s List of the worst company collapses in history.

Who coined the phrase “White Collar Crime”? Criminologist Edwin Sutherland created the phrase in the 1930s

Read More

Understanding the People in a Fraud Risk Statement

Oct 17, 2022 7:22:28 PM / by Leonard W. Vona posted in Fraud Risk Statements, Fraud Schemes, ...

The answers to last month's trivia and the setup to this month's topic on the people behind the fraud

What industry was Equity Funding in? Insurance.

What fraud risk statement occurred in Equity Funding? False Revenue to a false customer.

How did the fraud become known? A whistleblower, who most likely was part of the cover-up at one time.

How many employees participated in the cover-up? Over 100!

Is it true that the auditors went to jail? Yes. Apparently, the jurors thought that negligence in performing an audit is as serious as participation in fraud.

Read More