In July, I discussed a new rating system for fraud risk assessments. I said the residual risk calculation should not be the end point but the beginning of your strategy.
My last series of blogs discussed strategies for detecting shell companies. I know they work because I have refined the strategies throughout my career. Now we will discuss what causes those strategies to fail.
What are the inhibitors to the successful use of artificial intelligence in fraud detection? Humans.
In this series of blogs, we are looking at the practice of using a fraud audit to detect shell company schemes occurring in an accounts payable file. Because the practice of effective fraud auditing is grounded in knowledge, we will start with a knowledge section and then delve into a demonstration of the fraud audit process.
In this series of blogs, we are looking at the practice of using a fraud audit to detect shell company schemes occurring in an accounts payable file. Because the practice of effective fraud auditing is grounded in knowledge, we will start with a knowledge section and then delve into a demonstration of the fraud audit process.
In this series of blogs, we are looking at the practice of using a fraud audit to detect shell company schemes occurring in an accounts payable file. Because the practice of effective fraud auditing is grounded in knowledge, we will start with a knowledge section and then demonstrate the fraud audit process.
In this blog, we're looking at how to write a fraud action statement using the payroll function as a way to understand the starting process for a fraud audit.
But first, here are the answers for the trivia from the last blog:
1. What was the biggest corporate lawsuit settlement? $206 billion, paid by the nation’s four largest tobacco companies.
2. Excluding the tobacco lawsuit, what is the aggregate dollar value of the next 10 large corporate settlements? $88 billion dollars.
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.
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.
Fraud Data Analytics: Selecting the Strategy
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 step three:
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 one and two.
