Two days workshop on
Detecting, Preventing and Reporting Internal and External Fraud
Coming soon.. Please contact customer care for new schedule at +1-510-857-5896
Organizations of all kinds and sizes are increasingly threatened by fraud. Embezzlement, kickbacks, check fraud, financial statement fraud and vendor billing schemes are just a few of the countless crimes committed by employees and outsiders.

This seminar will provide auditors and other financial professionals with a strong foundation of practical knowledge about how the common frauds are committed.

Learning Objectives
  • Who commits fraud
  • Why employees commit fraud
  • How to detect the red flags of common schemes
  • Essential fraud detection tools and techniques
  • Software tools for auditing for fraud
  • Best practices for developing and implementing anti-fraud controls
Who can Benefit
  • Internal Auditors
  • External Auditors
  • Accountants
  • Bookkeepers
  • Loss Prevention Managers
  • Controllers/Treasurers
  • Compliance Officers
  • Security Managers
  • Fraud Examiners
  • Accounts Payable Managers
  • Procurement Managers

Day 1 (8:30 am – 9:00 am: Registration Process)


Introduction: 9:00 - 9:30
  • Statistical overview of the fraud problem
  • External versus Internal Fraud—short overview of differences
  • Who commits fraud - (ACFE data on women versus men, age groups, etc)
  • Why employees commit fraud (The Fraud Triangle)
  • Lessons from fraudsters: (Examples of real-life frauds that can and do affect organizations across industries)
  • 9:30-9:50: Group Exercise: Round-table: Share a fraud that affected an organization you work(ed) for; Group discusses how it could have been avoided.
Common Types of External and Internal Fraud

External Fraud: 9:50 - 10:30
  • Vendor fraud (Case studies that show ways vendor fraud can be committed)
  • Check fraud (illustrations of forged/altered checks)
  • ACH fraud – latest external cyber-schemes
  • Cyber-crime (hacking/information theft, system sabotage, viruses, etc)
  • Customer fraud
  • Social engineering to commit fraud (Phishing, spear-phishing, smishing, pretexting)
Break: 10:30 - 10:40

Internal Fraud: 10:40 - 12:00
  • Embezzlement (General definition; Koss Corp. embezzlement case)
  • Cash theft (Skimming, lapping)
  • T&E fraud/Misuse of company credit cards/P-cards
  • Collusion w/ domestic or international vendors (kickbacks, bribery)
  • Theft/falsification of confidential information (Example: Heartland breach or other case)
  • Identity fraud (Graphic description of ways internal ID theft/fraud is committed; pretexting, using co-worker's credentials to commit fraud; theft of customer ID)
Theft of assets (laptops, physical equipment, software piracy): 1:00 - 2:00
  • Payroll Fraud (Manipulating payroll systems; ghost employees)
  • Procure-to-Pay fraud (Procurement — Receiving—Accounts Payable Cycle)
  • Financial reporting fraud (Case study: TBA, depending on latest developments)
  • Intro to Internet/cyber-fraud (Case Study: TBA)
Break: 2:00-2:15

Group Exercise, Discussion question, Let's Solve a Fraud Case: 2:15 - 2:45


Conducting a Fraud Risk Assessment and Recognizing the Red Flags of Internal Fraud: 2:45 - 3:45

The Fraud Risk Mitigation Cycle—Implementing a organization-wide system for detecting, preventing and investigating fraud
  • Steps to conducting a successful fraud risk assessment (FRA)
  • Embezzlement red flags (Behavioral changes, accounting anomalies)
  • Cash theft red flags (anomalies in daily reconciliations, check-for-cash indicators, etc)
  • T&E fraud red flags (Unusually high expense claims; photocopies of receipts, etc)
  • Internal billing fraud red flags (frequent switches in vendors; vendor address is a P.O. box)
  • Collusion/kickback/bribery red flags (long-time vendor suddenly replaced, pricing anomalies, etc)
  • Identity fraud red flags (internal) (Employees complain of ID theft problems, customer complaints)
  • Theft of confidential information and intellectual property (Examples: Theft of customer credit card data and other PII; Scientific fraud/fraudulent scientific research)
  • Theft of assets/industrial equipment (laptops, software piracy, confidential/proprietary information)
  • Payroll fraud (terminated employees still receiving checks; payroll amounts fluctuate)
  • P2P fraud red flags (Suddenly higher costs of supplies or services; low quality of delivered merchandise; inventory anomalies)
  • Financial reporting fraud (Unusually high revenues, odd patterns in receivables, etc)
  • Counterfeiting and piracy (Graphic samples of red flags)
  • Internet/cyber-fraud
Group Exercise: How Could the FRMC be applied in YOUR organization? 3:45 - 4:30
Day 2


Fraud Detection: 8:30 - 10:00
Red Flags are the Key to Fraud Detection and Prevention. Once you know what red flags to look for you can implement effective detection, investigative and forensic accounting techniques.

Introduction: How Frauds Are Most Often Detected (General ways: ACFE Chart)

Additional General Detection Methods
  • Whistleblower hotlines: How to set them up and manage them (detailed discussion of do’s and don’ts). Detailed instruction on best practices and mistakes to avoid
  • Monitor Employee Email, other activities
  • Surprise Internal Audit
  • Regular internal audits, incorporating fraud audit testing
  • Ratio analysis
  • Physical inspection of inventory
  • Manual review of all vendors (to ensure absence of sham vendors)
  • Manual review/assessment of payroll sample data (to ensure absence of ghosts)
Data Mining/Analytics (is both detective and investigative. I/A can use D-M to screen for red flags) Basic steps and techniques and how to gather required data.

Additional General Detection Methods
  • Examples of Detective Measures at Work
  • Accounts Payable Fraud Auditing (List of AP fraud-audit/detection measures)
  • Payroll Fraud Auditing (List of payroll fraud-audit/detection measures)
Break: 10:00-10:15

Roundtable: Share an example of how a specific detection method led to catching a fraudster: 10:15-10:45


Internal Controls and Other Fraud Prevention Measures: 10:45 - 11:30
  • Who Should Manage Anti Fraud Activities
  • Internal Controls: Do’s and Don’ts
  • Best Practices in Anti-Fraud Controls
  • General controls: Segregation of Duties, Delegation of Authority, Background investigation
  • Specific operations-level controls for each fraud category
Group Exercise: List examples of common, essential controls to prevent: 11:30 - 12:00
  • Payroll Fraud
  • Kickback schemes
  • Theft of inventory
How to do Hotlines Right: 1:00 - 2:30

Break: 2:30 - 2:45


Peter Goldmann - CFE - President, FraudAware LLC.

Peter Goldmann is President of FraudAware LLC,the publisher of White-Collar Crime Fighter, a widely read bi-monthly newsletter for internal auditors, controllers, corporate counsel, financial operations managers and investigators. The newsletter is in its 15th year of publication under Peter's leadership. Peter is the author of Fraud in the Markets: Why it Happens and How to Fight It, published by John Wiley &Sons. The book is an in-depth account of the role that fraud played in bringing about the financial crisis of 2008. Peter is also the author of four other anti-fraud books covering accounts payable fraud, accounts receivable fraud, as well as two workbooks on fraud and cyber-risk and control, also published by Wiley.

Peter also developed FraudAware, the leading fraud and cyber-crime awareness training program. A user-friendly learning tool, FraudAware uses seminar, Webinar and E-Learning formats to train employees and managers at all levels in how to detect, prevent and report incidents of fraud, information theft and other forms of financial and electronic suspicious conduct.

FraudAware courses, which are customized for individual corporate, non-profit and government agency clients, reinforces organizations' whistleblowing programs by enabling employees to detect illegal activity that can then be reported to supervisors or managers or by using the organization's confidential hotline in accordance with established policy.

In addition, Peter has conducted numerous on-site fraud and cyber-crime detection and prevention workshops for internal auditors, attorneys, HR executives and compliance officers at Fortune 500 companies including Siemens Corp., Marriott International, Sony Denny's Corp,as well as large not-for-profit organizations. He has also been a guest lecturer for college accounting and auditing courses.

Peter has 25 years of experience as a business journalist and trainer, having launched, edited and published numerous business trade periodicals covering small business, international trade, management strategy, cyber-crime (Cyber-Crime Fighter) banking and personal finance. He is a Certified Fraud Examiner (CFE) and a member of the Editorial Advisory Committee of the Association of Certified Fraud Examiners (ACFE).

He has been a columnist for the ACFE's newsletter, The Fraud Examiner and is a frequent contributor to other leading industry publications on anti-fraud and cyber-crime topics. He has appeared on Fox Business News, The Wall Street Journal This Morning, The New York Times and Internal Auditor magazine.

Peter holds a Bachelor's degree from the University of Michigan and a Master's from the London School of Economics.