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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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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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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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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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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The Fraud Plan: Misappropriation in Payroll

Jul 2, 2018 10:48:00 AM / by Leonard W. Vona posted in Fraud Risk Statements, Fraud Auditing, ...

How you determine which concepts to evaluate to “consider fraud” and how to integrate fraud into your audit program is a challenge that is easily solved if you approach it with the scope and objectives of your audit clearly defined.

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