Fraud Auditing, Detection, and Prevention Blog

Uncovering Pass-Through Schemes Involving Real or Shell Companies

Sep 20, 2019 7:13:41 AM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Auditing ...

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.

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Hidden Entity Scheme

Aug 29, 2019 3:25:52 PM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Auditing ...

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.

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Setting up Audits to Locate Complex Vendor Overbilling by Price Inflation

Jul 23, 2019 5:24:49 PM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Auditing ...

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 in which I will explain three fraud statements I covered:

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Fraud Data Analytics: Designing the Fraud Test for the Plan

Jun 13, 2019 3:05:18 PM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Auditing, ...

In our first blog in a series on fraud data analytics, we identified a ten-step methodology for conducting a fraud data analytics project. In this blog, we will discuss steps nine and ten:

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Fraud Data Analytics: The Process of Selecting Transactions for Fraud Testing

May 21, 2019 8:00:27 AM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Auditing, ...

In our first blog in a series on fraud data analytics, we identified a ten-step methodology for conducting a fraud data analytics project. In this blog, we will discuss steps seven and eight:

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Fraud Data Analytics: Eight Critical Steps to Building Your Search Routines

Apr 18, 2019 8:29:16 AM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Risk Statements, ...

 

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Uncovering Fraud Using Fraud Data Analytics: Part 3 + 4

Mar 26, 2019 4:55:40 PM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Risk Statements, ...

Fraud Analytics: Planning considerations

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Uncovering Fraud Using Fraud Data Analytics: Part 1

Dec 1, 2018 7:45:04 AM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Risk Statements, ...

This blog is the first in a series of seven to explain how to perform fraud data analytics. It introduces a ten-step approach along with explaining the concept of fraud auditing.

For years, auditors, myself included, would launch a fraud detection project by getting the data and playing with the data. At least that was the expression. We hoped to trip across a fraud scheme.  We had no specific plan, just a simple goal: Find fraud. We did not know what we were looking for, but we were looking. Eventually, we hoped to find something. But, those days are over.

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Complex Fraud Scheme: Vendor Overbilling Part 2

Aug 6, 2018 9:47:00 AM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Risk Statements, ...

This is part two of a blog post series examining a worked exampled using fraud data analytics on a complex fraud scheme.

In this post we will look at how to use fraud data analytics designed to uncover the complex fraud scheme and the fraud audit procedures designed to provide creditable evidence that the scheme is being perpetrated by the budget owner.

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Complex Fraud Scheme: Vendor Overbilling Part 1

Aug 2, 2018 9:07:00 AM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Risk Statements, ...

In our fraud risk registers, we have identified over 100 procurement fraud schemes and over 100 overbilling fraud schemes. When these kinds of numbers are involved the idea of finding complex fraud schemes in your core business systems may seem overwhelming. However, fraud data analytics can simplify and improve the process.

In this blog we have selected a complex corruption scheme and a complex overbilling scheme to illustrate how fraud auditing can detect even the most complex schemes. The starting point is to identify the fraud risk statement and then understand how and where the scheme can occur in your organization.

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