Fraud Auditing, Detection, and Prevention Blog

What is High Fraud Risk? A Different Perspective

Jan 19, 2021 9:51:44 AM / by Leonard W. Vona posted in Fraud Auditing, Fraud Detection, ...

There is an urgent question that I don’t think has been asked often enough: Is the conventional professional view of fraud risk broad enough to protect companies from both monetary and non-monetary impact associated with internal fraud?

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Think like a thief. Does this really work for Fraud Auditing?

Dec 14, 2020 10:26:12 AM / by Leonard W. Vona posted in Fraud Auditing, Fraud Detection, ...

There’s a notion in fraud auditing that the auditor should “think like a thief.” I am going to go out on a ledge and raise the question: Is the idea of thinking like a thief a silly suggestion? I ask you, were raised to think like a thief? Did your parents compliment you on your lying skills? Did your teachers praise you on your ability to cheat on a test? Do you and your associates discuss how to steal from your employer at the lunch table? Certainly, the answer is no!

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Making Audit Number One in Fraud Detection

Nov 16, 2020 12:18:00 PM / by Leonard W. Vona posted in Fraud Auditing, Fraud Detection, ...

Professional Skepticism… How we can become number one in fraud detection?

If audit desires to be the number one reason for fraud detection, then what does our profession need to do? This blog is written for auditors who desire the audit profession to be the number one reason for fraud detection. I will challenge our current beliefs and methodologies, not to say they are right or wrong but to cause you to think. After all, a key component of professional skepticism is a questioning mind.

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Professional Skepticism & Duty of Care: The Fraud Detection Dilemma

Oct 14, 2020 10:10:19 AM / by Leonard W. Vona posted in Fraud Data Analytics, forensic accounting, ...

Since I started my career in the professional practice of audit, there has been a debate about the auditor’s responsibility for detecting fraud. For some reason, the audit profession has shied away from this responsibility. And yet, whenever an incident of fraud is detected, everyone says “where were the auditors?” Henceforth the fraud detection dilemma, auditor’s responsibility, and public expectation.

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Is Professional Skepticism Overrated for Fraud Detection?

Sep 21, 2020 8:03:30 AM / by Leonard W. Vona posted in Fraud Auditing ...

  1. I knew the title would catch your attention. But, I think it is a fair question for discussion. After all, a questioning mind is the cornerstone of professional skepticism.

    Did you know that the lack of professional skepticism is cited as one of the main reasons for audit failure? The Cambridge English Dictionary defines audit failure “as a situation in which an audit wrongly states that a company's accounts are correct when they contain mistakes or false statements.”

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Four Strategies for Fraud Auditing

Aug 18, 2020 10:21:39 AM / by Leonard W. Vona ...

Last month I introduced the concept of integrating fraud testing in your audit program. The blog discussed the pros and cons of the four approaches and offered advice to the CAEs. This month, I will discuss the four strategies and explain the “how to” for the auditors in the field. I will use a payroll fraud risk statement to illustrate the concepts. Please remember, I consider myself a practitioner first and a blogger second.

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Integrating Fraud Testing Into Your Audit Program

Jul 15, 2020 8:36:51 AM / by Leonard W. Vona posted in Fraud Auditing, Fraud Detection, ...

Let’s start out with a question:  Is the audit profession doing a better job today than 20 years ago in responding to the risk of fraud in audits?

Various studies indicate that whistle blowers and accidents are still the number one reason for detecting frauds while the audit process is still on the bottom of the list. So, I guess the answer to the question is “no!”

I do not, however, think this is a reflection on the people working in the profession but rather the tools, or lack there of, that auditors are using in the audit.

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Fraud Auditing and the Paycheck Protection Program

Jun 15, 2020 9:45:00 AM / by Leonard W. Vona posted in Fraud Schemes, Fraud Auditing, ...


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Managing Fraud Detection and Prevention During a Pandemic

May 13, 2020 7:45:00 AM / by Leonard W. Vona posted in Fraud Risk Statements, Fraud Detection, ...

My marketing team has encouraged me to write about the impact of Covid-19. To an extent, writing about the benefits of fraud auditing in the middle of a world crisis does not seem like the right time or place, but there is a greater potential for fraud during times of upheaval. And, we all have bosses, so here I go." FYI, my May blog will be USA centric, I apologize to my world readers.

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Audit As The Number One Reason For Fraud Detection

Apr 14, 2020 2:21:57 PM / by Leonard W. Vona posted in Fraud Detection ...

In my December 2019 blog I stated “I will provide eleven statements in the spirit of causing you to think about your audit plan and help you create a dialog in your company about improving your ability to find fraud risk statements within your audit.”

The remaining three observations are what I have referred to as the “my statement”. These are my predictions, hopes or my aspirations.      

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