Fraud Auditing, Detection, and Prevention Blog

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.

In my December 2019 blog, I provided eleven statements in the spirit of causing you to think about your audit plan and helping you create a dialog in your company about improving your ability to find fraud risk statements within your audit. In January and February and this blog, I’m delving deeper into the issues.

In my December 2019 blog, I provided eleven statements in the spirit of causing you to think about your audit plan and helping you create a dialog in your company about improving your ability to find fraud risk statements within your audit. In last month’s and this blog, I’m delving deeper into the issues.

In my December 2019 blog, I provided eleven statements in the spirit of causing you to think about your audit plan and helping you create a dialog in your company about improving your ability to find fraud risk statements within your audit. In the next four blogs, January – April, I will elaborate on them.

Over the last few weeks, I have had the pleasure of hearing from readers who have uncovered fraud schemes in their companies. This includes two chief auditors who attributed their ability to locate fraud schemes to my lectures or my fraud auditing techniques. I want to thank these individuals for contacting me. It was very kind of them.

Over the last six months, I have traveled the world talking about fraud data analytics. I want to thank everyone who has participated in the sessions. I also want to thank the hundreds of individuals who have signed up to receive our monthly blog newsletter.

One of the most popular topics on this blog has been Ghost Employees. I recently sat down for an interview on how fraud auditing can be used to uncover Ghost Employee schemes that I wanted to share with you.

At the June 2019 ACFE conference I spoke about Fraud Data Analytics (FDA): How to Locate Complex Vendor Overbilling Fraud Risk Statements. My sessions were sold out, so for those unable to hear my presentation I am writing three blogs that explain three of the four fraud risk statements I covered: Price inflation scheme: hidden entity scheme and now we will cover the pass-through scheme. The fourth fraud risk statement was explained in a blog posted on August 18, 2018.

At the June 2019 ACFE conference I spoke about Fraud Data Analytics (FDA): How to Locate Complex Vendor Overbilling Fraud Risk Statements. My sessions were sold out, so for those unable to hear my presentation I am writing three blogs that explain three of the four fraud risk statements I covered: Price inflation scheme: hidden entity scheme and the pass-through scheme. The fourth fraud risk statement was explained in a blog posted on August 18, 2018.