Fraud Auditing, Detection, and Prevention Blog

Mastering Shell Company Detection: Practical Steps for Fraud Auditors: Part 5

Nov 15, 2023 12:14:12 PM / by Leonard W. Vona posted in Fraud Risk Statements, Fraud Schemes, ...

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.

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Understanding the People in a Fraud Risk Statement

Oct 17, 2022 7:22:28 PM / by Leonard W. Vona posted in Fraud Risk Statements, Fraud Schemes, ...

The answers to last month's trivia and the setup to this month's topic on the people behind the fraud

What industry was Equity Funding in? Insurance.

What fraud risk statement occurred in Equity Funding? False Revenue to a false customer.

How did the fraud become known? A whistleblower, who most likely was part of the cover-up at one time.

How many employees participated in the cover-up? Over 100!

Is it true that the auditors went to jail? Yes. Apparently, the jurors thought that negligence in performing an audit is as serious as participation in fraud.

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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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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 Document Your Fraud Audit Scope

Aug 23, 2021 7:36:54 AM / by Leonard W. Vona posted in Fraud Schemes, Fraud Auditing, ...

After a series of thought-provoking blogs, I thought it was time to write a practice blog. I hope you find it helpful in your next audit.

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What Does it Take to be a Fraud Auditor?

Jul 21, 2021 7:58:08 AM / by Leonard W. Vona posted in Fraud Schemes, Fraud Auditing, ...

So, you want to be a fraud auditor?

I have been practicing as a fraud auditor for over forty years. To be honest, for the first twenty, I did not know I was a fraud auditor. I spent the next twenty refining the practice of fraud auditing. So, this blog is intended to provide you the necessary skill set to become a fraud auditor.

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Discover the Power of Fraud Knowledge

Jun 16, 2021 6:10:25 PM / by Leonard W. Vona posted in Fraud Schemes, Fraud Auditing, ...

Professional Skepticism: The Power of Fraud Knowledge

In June 2021, I will be speaking at the ACFE virtual conference on the Power of Fraud Knowledge. When I speak at a conference, my process is to select a topic, prepare the presentation, and then prepare to communicate the presentation. To do a good presentation, one should never simply read the slides but rather explain them, illustrate the concepts, explain practical applications, and maintain the audience’s interest. So, why am I telling you this?

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Fraud Auditing and the Paycheck Protection Program

Jun 15, 2020 9:45:00 AM / by Leonard W. Vona posted in Fraud Schemes, Fraud Auditing, ...

                                

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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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