Fraud Auditing, Detection, and Prevention Blog

The Science of Identifying Fraud Risks in Your Business

Aug 26, 2022 8:43:15 AM / by Leonard W. Vona posted in Fraud Risk Statements, Fraud Risk Identification, ...

Who caused the failure of a bank via illicit stock trades? Nick Leeson

Who almost caused the failure of a bank due to illicit stock trades? Jérôme Kerviel 

What carpet cleaner was listed on Forbes? Barry Minkow

Which was the first widely publicized case of computer crime to conceal a financial statement fraud? Equity Funding. I remember when this case was first publicized, and I must admit, it started with my fascination with fraud as an auditor.

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A Vulnerability Assessment Approach to Fraud Auditing

Jun 12, 2022 7:43:27 PM / by Leonard W. Vona posted in Fraud Auditing, Fraud Detection, ...

Last Month's Trivia answers

What are the 10 most common sources of food fraud? Hint: Identify the food item.

According to scientists, the most common sources of food fraud are olive oil, milk, honey, saffron, orange juice, apple juice, grape wine, vanilla extract, and fish. Think about that the next time you go to the grocery store!

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A Different Way to Think About Fraud Risk Management

May 23, 2022 8:24:28 AM / by Leonard W. Vona posted in Fraud Auditing, Concealment Strategies, ...

On which day of the year are online dates most vulnerable to fraud schemes?

Valentine’s day -- the heart wants what the heart wants! Does this make us vulnerable?

In the USA alone, romance swindles cost how many millions of dollars in one year?

Romance frauds resulted in losses of over $300 million in the US in 2021.

How does the sophistication of fraud concealment, apply to online dating fraud?

The romance scammer uses techniques to make you believe that their love for you is real. Fraudsters, also use techniques to make fraudulent transactions look real!

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Forensic Auditing Vs. Forensic Investigation of Fraud

Apr 20, 2022 5:17:42 PM / by Leonard W. Vona posted in Litigation, Fraud Auditing, ...

Check out the answers to last month's Trivia Quiz and why it matters for making our profession the number one reason for fraud detection:

How much more money is laundered in fiat currencies than in cryptocurrency?

400 times more money is laundered in fiat currencies than in cryptocurrency.

What percentage of system-generated alerts against money laundering resulted in false positives?

95% of system-generated alerts against money laundering resulted in false positives.

According to money laundering statistics of 2020, what percent of laundered money goes undetected?

90% of laundered money remains undetected, according to money laundering statistics of 2020. 

Source: Legal Jobs Blog

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Applying Knowledge to a Fraud Audit

Mar 17, 2022 6:03:55 PM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Risk Identification, ...

Last month’s trivia questions and answers

Besides the fraud triangle, what other shapes are used to describe the theory of why people commit fraud.

 The fraud diamond and the fraud pentagon.

 In what year did Dr. Cressy publish the fraud triangle?

This is an interesting question because there seem to be conflicting thoughts on this subject. With that said, I will say the study was never published by Dr. Cressey, based on what I believe is a reliable source. This does not diminish the importance of the fraud triangle, it is just interesting trivia.

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How to Use the Red Flag Concept in Fraud Auditing

Feb 21, 2022 8:00:33 AM / by Leonard W. Vona posted in Fraud Risk Statements, Fraud Schemes, ...

Last month’s trivia questions and answers

Which country offers an on-line fraud quiz to test their citizen's awareness to fraud?

Canada: If your country offers such a quiz, please let me know.

What was the first recorded fraud?

The first recorded fraud scheme is from 300 B.C. in Greece.

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Making Audit the Number One Reason for Fraud Detection

Jan 12, 2022 2:38:55 PM / by Leonard W. Vona posted in Insider, Fraud Auditing, ...

Last month’s trivia questions and answers...

What is the full name of the person who first perpetrated the Ponzi scheme?

Despite the notoriety of Charles Ponzi, the scheme that carries his name, it was first perpetrated by Sarah Howe in Boston in 1879.

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What a Fraud Auditor Can Learn from Food Fraud

Dec 16, 2021 7:51:52 PM / by Leonard W. Vona posted in Fraud Schemes, Fraud Auditing, ...

Last month’s trivia questions and answers

In the movie “The Accountant”, as the protagonist solves the financial statement fraud scheme, what real life financial statement fraud did the Accountant sketch out on the glass walls of the conference room?

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Does Fraud Mitigation Work in Real Life the Way the Auditing Profession Believes?

Nov 17, 2021 9:07:46 AM / by Leonard W. Vona posted in Fraud Schemes, Fraud Auditing, ...

Before we start this month’s blog, last month’s fraud trivia questions and answers.

What was the original name of the ACFE? NACFE

What was the original name of the ACFE monthly newsletter? White Paper

Is there a designation, Life Time CFE? Yes, it was issued once in the early years

What is your favorite Fraud Movie? This is always a tough question, but here is a few: Catch Me if You Can; The Wolf of Wall Street; Wizard of Lies, and of course, The Accountant.

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How to Write a Fraud Audit Finding

Oct 19, 2021 10:06:56 AM / by Leonard W. Vona posted in Fraud Risk Statements, Fraud Auditing, ...

First, trivia questions and answers from last month’s blog:

What was the original name for the FBI?

Answer: B.O.I. Bureau of Investigation

What professions did J. Edgar Hoover like to hire for FBI agents?

Answer: Lawyers, reporters, and accountants

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