Fraud Auditing, Detection, and Prevention Blog

Emerging Issues: Top 100 Most Ethical Companies

May 14, 2021 4:19:42 PM / by Leonard W. Vona posted in Fraud Risk Identification, Fraud Auditing ...

  1. Last month I wrote about the Top 100 Corporate Criminal List. So, this month I will write about the most ethical companies. If you are not aware, there is an organization, Ethisphere, that publishes a report each year listing the most ethical companies. I would encourage you to look at the report.

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Emerging Fraud Audit Issues: Top 100 Corporate Criminals List

Apr 21, 2021 3:30:56 PM / by Leonard W. Vona posted in Fraud Risk Identification, Fraud Auditing ...

I think it is time for a change in my focus, so this blog will not address our profession directly but rather corporate management. I believe that the concealment of criminal fraud by management is a critical emerging issue that should be top of mind for fraud auditors. Maybe it has always been an issue, but nobody wanted to discuss it.

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Fraud. What does this really mean?

Mar 16, 2021 4:27:51 PM / by Leonard W. Vona posted in Fraud Risk Identification, Fraud Auditing ...

Consider Fraud. What does this really mean?

As you are aware, the auditing standards require an auditor to consider fraud in the conduct of an audit. Depending on the standards you follow, the meaning has different requirements. No, I have no intention of critiquing each standard but rather, I want to critique the phrase “consider fraud”

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Fraud Risk Assessment: Folly or Prudence?

Feb 22, 2021 1:15:00 PM / by Leonard W. Vona posted in Fraud Auditing, Fraud Detection, ...

Before we start on this journey, I need to explain the premise of my blog. I want to explore whether there is business value in an organization incurring the cost of preparing a comprehensive fraud risk assessment.

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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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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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