Recommended Duration: Maximum of 3 days
(This course fulfills the ICFA CPD requirements)
Course Overview
A lifestyle forensic audit is the term commonly used by forensic auditors and management in companies to describe the tests that are performed to determine if the lifestyle of an employee or group of employees is commensurate with known income stream.
When a detailed lifestyle forensic audit is performed on an employee implicated in fraudulent or corrupt activity, it is often also described as suspect profiling. The goal of a lifestyle forensic audit is to expose corruption and reduce fraudulent practices. This 3 days course will increase the awareness of participants to an important aspect of fraud investigation that fraudsters often ignore while covering their tracks.
Learning Objectives
At the end of this course, participants will be able to:
- Detect white collar criminals for sanctioning;
- Identify various types of frauds/corruption in sections and units as exposed by staff lifestyle
- Detect Tax frauds
- Detect fraud in working environment
- Demonstrate skills for Forensic Investigations;
- Conduct forensic auditing of most suspects discretely and without suspicion
- Apply forensic skills in profiling white collar crimes;
- Present forensic evidence at Disciplinary/Management committees successfully;
- Reduce the risk of unethical practices and conducts in their organisations
- Find the elusive misconduct that others miss
- Conducting lifestyle audit
- Write forensic audit investigation reports;
Lesson 1
Introduction to Forensic Auditing
- Definition
- Forensic auditing explained
- The need for Forensic Auditors
- Why the Increase in fraud?
- What is fraud
- Introduction to lifestyle forensic audit
- Fraud background
- The Fraud Triangle
- Pressure or Incentive to commit fraud
- Opportunity to commit fraud
- Rationalization or Justification for committing fraud
- Identity Fraud
- The Relationship Between Fraud And Violent Crime
- Lasting Impact of Fraud
- 3 ways to Explain Fraud
Lesson 2 – Red Flags of Lifestyle Frauds
- How is Fraud Discovered?
- 16 common anti-fraud controls
- What is a Red Flag?
- The Importance of Red Flags for Fraud
- General Red Flags
- Opportunity Red Flags
- Employee Red Flags
- Management Red Flags
- Changes in Behaviour “Red Flags”
- Red Flags in Cash/Accounts Receivable
- Red Flags in Payroll
- Red Flags in Purchasing/Inventory
- Red Flags in Purchasing/Inventory
- The Net Worth Method
- Example of Net Worth Method
- Sources and Application of Funds Method
- Example of Sources and Application of Funds
- Everybody pays the cost of fraud
Lesson 3 - Corruption and the Psychology of fraud
- Definitions of corruption
- What causes and fuels corruption
- Levels of corruption
- Corruption prevalence
- Procurement fraud
- Examples of Corruption in Infrastructure
- Some of the good practices in public procurement
- Identifying risk of and vulnerability to corruption in the procurement
- Recognizing the symptoms of corruption
- Measuring and ranking the risk of corruption in your organization
- Bribery and Kickback Red Flags in your Organizations
Course Timeline:
Lesson 1 begins with the definition and introduction of forensic accounting which preludes forensic auditing. It opens up the history of forensic accounting and discusses the need for forensic accounting skills. The lesson further interrogates the increase in frauds, defines fraud and opens up the lifestyle forensic audit. It explores the background of fraud and explains the popular fraud triangle. It concludes by discussing the Lasting Impact of Fraud and the 3 ways to Explain Fraud. Topics discussed in lesson 1 are:
• Definition
• Forensic auditing explained
• The need for Forensic Auditors
• Why the Increase in fraud?
• What is fraud
• Introduction to lifestyle forensic audit
• Fraud background
• The Fraud Triangle
• Pressure or Incentive to commit fraud
• Opportunity to commit fraud
• Rationalization or Justification for committing fraud
• The Relationship Between Fraud And Violent Crime
• Lasting Impact of Fraud
• 3 ways to Explain Fraud
Lesson 2 treats the discovery of frauds in organizations and their respective red flags
Red flags of various frauds are discussed. Reconstruction of suspicious lifestyle incomes using the Net worth Method, and Sources and Application Method, and the cost of fraud to every citizen are also discussed. The topics covered include:
• How is Fraud Discovered?
• 16 common anti-fraud controls
• What is a Red Flag?
• The Importance of Red Flags for Fraud
• General Red Flags
• Opportunity Red Flags
• Employee Red Flags
• Management Red Flags
• Changes in Behaviour “Red Flags”
• Red Flags in Cash/Accounts Receivable
• Red Flags in Payroll
• Red Flags in Purchasing/Inventory
• Red Flags in Purchasing/Inventory
• The Net Worth Method
• Example of Net Worth Method
• Sources and Application of Funds Method
• Example of Sources and Application of Funds
• Everybody pays the cost of fraud
Here we discussed elaborately about corruption in contracts and procurement. We treat various types of fraud using the fraud triangle. Other topics are:
• Definitions of corruption
• What causes and fuels corruption
• Levels of corruption
• Corruption prevalence
• Procurement fraud
• Examples of Corruption in Infrastructure
• Some of the good practices in public procurement
• Identifying risk of and vulnerability to corruption in the procurement
• Recognizing the symptoms of corruption
• Measuring and ranking the risk of corruption in your organization
• Bribery and Kickback Red Flags in your Organizations
Test
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