Forensic Accounting And Fraud Investigation Related
Fraud 101: What You Need to Know!
A review of fraud fundamental including why people commit fraud? how they do it, and how you can prevent them or at least detect when it is going on. This session also goes over common fraud schemes perpetrated against businesses and nonprofit organizations, with a review of numerous recent cases emphasizing “what went wrong” and “lessons learned.” Participants are given specific practical takeaways on how they can mitigate the threat of fraud in their organizations and also help detect it when it occurs.
The Anatomy of a Fraud Investigation
Follow a real-life fraud case from its discovery through its investigation and final resolution of criminal referral, working with the organization’s legal counsel, management and board. Attendees will be shown the nuts and bolts of how forensic investigators pieced together the evidence to prove the existence of a multimillion dollar embezzlement by an executive of a large nonprofit organization. Triggered by a whistleblower, the investigators found that the executive had defrauded his employer for nearly 7 years, using a shell company to submit an unending stream of invoices for IT equipment the organization never received. Aided by technology experts, the investigators were able to prove that the sheer volume of IT equipment ordered by this shell company would have provided by computing power than the organization could ever use! Learn how investigators identified conflicts of interest, deciphered falsified invoices, and earned their clients the maximum insurance settlement possible.
Fraud and Best Practices for Internal Controls
This session will review the common fraud schemes commonly perpetrated against businesses and other organizations in today’s business environment, including internal occupational fraud and external threats from third parties, including hackers. The session will review best practices for internal controls to help prevent and detect these common fraud schemes from a financial, operational and human resources point of view. The fraud schemes perpetrated will be illustrated from recent actual cases with an emphasis placed on what controls may have prevented or detected the fraud in a timely manner. The session will emphasize “what went wrong” and “lessons learned” in providing participants practical take-aways to help prevent and detect fraud through best practices internal controls.
Fraudulent Financial Reporting and How to Detect It!
Although fraudulent financial reporting maybe infrequent in its occurrence, its consequences are often significant and far reaching. Board of Directors, Audit Committees and auditors know all too well the devastating effects of fraudulent financial reporting and financial statement restatements can have on an organization both financially and reputational. The pressure to meet external and/or internal requirements and expectations often push management over the line resulting in schemes to “cook the books.” This session will examine the various fraudulent financial reporting schemes used with real-world case studies to illustrate the way the scheme was carried out, how it was discovered, the consequences to the fraud perpetrators and the entity, and ways it could have been prevented. The presenter will also review the common attributes or “red flags” of fraudulent entities and key management involved in perpetrating the fraud.
Fraud Risk Assessments: Why are they Necessary and How to Conduct One
The 2013 COSO Framework, which can be applied by all entities-public or private, large, mid-size, small, for-profit, non-profit, and government bodies, identifies under the Risk Assessment component the principle that potential for fraud be considered. The proliferation of fraud and abuse in continues unabated. Many organizations have found themselves being the unwanted headlines in the press as a result of a fraud. Most organizations unfortunately wait until they have an incident of fraud or abuse to respond and in most cases the damage is already done. As a consequence, the organization can suffer tremendous monetary and reputational loss, even resulting in the demise of the organization. Organizations today need to be more proactive in preventing fraud and abuse instead of reactive to an event of fraud and abuse. Conducting a comprehensive fraud risk assessment is an invaluable process in combating fraud and abuse in organizations and an organization of any size should conduct periodically. This session will examine the various threats of fraud and abuse facing organizations and their potential impact; why it is important for your organization to conduct comprehensive fraud risk assessments; the process of conducting a comprehensive fraud risk assessment; the elements of an effective anti-fraud and prevention program; and the importance of why you should have your fraud risk and response team in place now.
Fraud Risk Assessment – The Human Element
There is one common element in every fraud – people! This session will examine in depth leading theories and research on why certain people commit white-collar crimes and why some can be more destructive to an organization than others. Participants will learn the profiling techniques used by law enforcement and psychologists for career psychopathic white-collar criminals, the most dangerous of white-collar criminals. This session will identify the most common behavioral red flags associated with white-collar criminals and tips for avoiding becoming victims. Lastly, participants will learn what you can do if you discover a serial psychopathic fraudster in your organization.
Employee Benefit Fraud: Including Recent Case Study Analysis
This session will review why employee benefit plans are a target of fraud, the types of fraud and most common fraud schemes perpetrated against plans, who the perpetrators are, the regulatory enforcement against perpetrators of employee benefit fraud, and an analysis of recent actual fraud cases involving employee benefit plans. The session will emphasize “what went wrong” and “lessons learned” in providing the participants practical take-aways to help prevent and detect fraud involving employee benefit plans. The session will also provide trustees and other fiduciaries of employee benefit plans where they could be exposed to regulatory enforcement action in the context of criminal and civil actions for fraud and abuse.
Fraud Alert!
One of the most important sources of information in any investigation is what people say, or sometimes more importantly, what they don’t say. This session is designed to help the forensic accountant understand the importance of strong interviewing skills and the techniques of conducing effective interviews. We examine vvthe distinction between information-seeking interviews and admission-seeking interviews (“interrogation”), and how to detect truth and deception during the interview. Finally, we discuss various tips and practical suggestions that the speaker offers from his decades of performing interviews in various forensic accounting cases and auditing.
Conducting Internal Workplace Investigations
In today’ business world and environment, organizations are confronted with a growing number of employee complaints, accidents, allegations of misconduct, and violations of laws or corporate policy, as more pressure is put on having proper channels and mechanisms for internal reporting. Conducing a thorough and effective internal investigation is now a must. This session will examine the duty of management to conduct internal investigations and how a properly conducted investigation can help prevent or mitigate losses and other negative outcomes. The session will cover how to conduct an effective internal workplace investigation; who should conduct the investigation to guard against bias; the common mistakes made and how to avoid them; and how to document the investigation to ensure it will stand up in court.
Forensic Accounting Investigative Methodology: Why You Must Have One
Smart investigators know that they should conduct each investigation with the assumption that their work will be scrutinized in a court of law. In addition, no one wants to be embarrassed when that happens, and your work is put under question by a judge and jury. Further, the Daubert standard requires that an expert use reliable principles and methods, which can be difficult in the complex world of fraud and abuse. Forensic accountants and investigators cannot rely on ad hoc investigative plans and methodologies, especially when there is a need to assemble your team and move quickly. The presenter, a veteran of hundreds of forensic investigations, will walk you through the key elements of a sound methodology that can stand up to challenges by opposing counsel in depositions and trial.
Nonprofit Fraud Series: What You Need To Know!
Nonprofit Fraud Prevention
Mr. Hoffman also offers a series of courses for nonprofit organizations in how they can help prevent and detect fraud.
Part I – The Fraud
This session will emphasize why it is important that management and those charged with governance are educated in fraud awareness; the magnitude of fraud in nonprofit organizations; the types of frauds most frequently perpetrated by and against nonprofits; why does fraud occur in nonprofits including the common opportunities presented to the fraudster; and some important fraud prevention takeaways.
Part II – The Detection
This session will review who the typical fraud perpetrators are; why people commit fraud; how is fraud detected; the red flags of fraud; various fraud detection techniques; and what you should do and not do when and if you uncover a fraud in your organization.
Part III – The Prevention
This session will review the primary factors contributing to fraud in nonprofits; the difference between detective and preventive controls; what are best practices for preventing fraud in nonprofits; what are the best preventive measures; and five critical takeaways you can immediately implement in your organization to help prevent and detect fraud.
Attorney CLE Forensic Accounting Series
CLE Courses for Lawyers
Mr. Hoffman also offers a free series of CLE courses for lawyers involving current issues in forensic accounting related topics.
Part I – Financial Statements: Depiction or Deception?
This session examines financial statements from the perspective of the defendant and the plaintiff and provides examples of cases in which the defendant’s objective is to maximize the value of a business, while the plaintiff’s objective is the opposite. In this manner we are able to alert attorneys to accounts and trends in the financial statements that may be misstated or manipulated to achieve a desired effect. The session examines financial statement categories with the greatest risk of over-reliance by the court, and the reasons for this risk.
Part II – What are the Damages? How Forensic Experts Calculate Economic Damages
This session will examine the common approaches and methods forensic accounting experts use to calculate estimates of economic damages in the context of breach of contract, torts, and intellectual property matters. The session will explore the process experts use in developing an effective damage claim including the necessary information and evidence needed to provide appropriate testimony and avoid exclusion under Daubert. Actual court cases will be used to illustrate the critical take-aways of the session.
Part III –Working the Forensic Accounting Expert
This session will examine how lawyers can best work with the forensic accounting expert. We will specifically examine when and how to engage the expert, communications during the engagement, understanding the experts assignment and ultimate opinion(s), preparing the expert for deposition and trial testimony, how to best deal with Daubert and Motions in Limine matters should they come up.
Bank Lending Fraud: A Primer For Lending
Training for Bankers and Lending Officers
Mr. Hoffman also offers a training courses for bankers and lending officers involving current issues in bank fraud and other related topics.
This session will provide financial institution lending and credit officers, and members of the loan committee with an understanding of how borrowers can manipulate financial statements and other lending documents and requirements to perpetrate loan fraud. This session will examine the various fraudulent financial reporting schemes used with real-world case studies to illustrate the way the scheme was carried out, how it was discovered, and the consequences to the financial institution. The presenter will also review the common attributes or “red flags” of fraudulent entities and key management involved in perpetrating the fraud. The session will also provide participants with key take-aways on how they can be more diligent in reviewing loan requests, practical tools to use in analyzing borrower financial statements, and also how to perform a more effective site visit and interview of the borrow.
Audit And Accounting Related
Fraud Awareness and Enhanced Skills for Financial Statement Auditors
This session will examine why it is important for financial statement auditors to be adequately trained in being able to recognize fraud in conducting an audit in accordance with Generally Accepted Auditing Standards. The session will include a “deep dive” of U.S. Auditing Standards Topic 240, Consideration of Fraud in a Financial Statement Audit; examine the various fraudulent financial reporting schemes used with real-world case studies to illustrate the way the scheme was carried out, how it was discovered, the consequences to the fraud perpetrators and the entity, and ways it could have been prevented. The presenter will also review the common attributes or “red flags” of fraudulent entities and key management involved in perpetrating the fraud, and finally, what you should do as an auditor if you suspect fraud and working with your firm’s forensic accounting specialists.
Interviewing Skills for Auditors
Being an effective auditor not only includes good analytical skills, but also communication skills. Gathering audit evidence includes conducting effective inquiry of management and others. In order to gain the appropriate evidence in an efficient and effective manner, auditor need to know how to conduct effective interviews. People communicate through verbal and non-verbal means. The auditor not only needs to know how to be an effective listener, but also how to read and interpret the non-verbal communications their interviewee is portraying. The session will use live role-playing to demonstrate the proper interviewing techniques used by effective auditors.
Conducting Efficient and Effective Audits
In today’s competitive environment it becomes more and more difficult to balance the opposing forces of audit quality and audit engagement profitability. This session examines the ways that audit firms and auditors can conduct audits in a more efficient manner without sacrificing audit quality. We will explore the principle reasons why audit firms typically perform inefficient audits and erode profitability and look at practical measures that firms can implement in their audit process.
Analytical Procedures: A Powerful Audit Tool
Analytical procedures are required in various stages of the audit process and can be used as an effective audit tool in other areas of the audit. We will explore the ways the auditor can effectively design and use analytical procedures as a powerful audit tool in conducting their audit and improve audit efficiency and quality.