Scribd Logo
Upload

Welcome to Scribd!

  • ASC - Fraud Seminar - 2023 Din - 03

    Uploaded by

    jannah
    16 views18 pages
    This document discusses fraud prevention in organizations. It outlines common fraud indicators like behavioral changes in employees or organizational deficiencies. Behavioral red flags include living beyond one's means or financial difficulties. Organizational red flags include an immature structure, lack of oversight, and noncompliance. The document notes that over 50% of fraud cases involve at least one behavioral red flag. It also shows that fraud lasting over one year typically causes higher losses than those discovered sooner. Finally, it recommends enhancing an organization's control system to detect fraud through measures like whistleblower hotlines, evaluating culture and values, and conducting regular audits.

    Original Description:

    Original Title

    ASC_Fraud Seminar_2023 Din_03

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document discusses fraud prevention in organizations. It outlines common fraud indicators like behavioral changes in employees or organizational deficiencies. Behavioral red flags include living beyond one's means or financial difficulties. Organizational red flags include an immature structure, lack of oversight, and noncompliance. The document notes that over 50% of fraud cases involve at least one behavioral red flag. It also shows that fraud lasting over one year typically causes higher losses than those discovered sooner. Finally, it recommends enhancing an organization's control system to detect fraud through measures like whistleblower hotlines, evaluating culture and values, and conducting regular audits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    16 views18 pages

    ASC - Fraud Seminar - 2023 Din - 03

    Uploaded by

    jannah
    This document discusses fraud prevention in organizations. It outlines common fraud indicators like behavioral changes in employees or organizational deficiencies. Behavioral red flags include living beyond one's means or financial difficulties. Organizational red flags include an immature structure, lack of oversight, and noncompliance. The document notes that over 50% of fraud cases involve at least one behavioral red flag. It also shows that fraud lasting over one year typically causes higher losses than those discovered sooner. Finally, it recommends enhancing an organization's control system to detect fraud through measures like whistleblower hotlines, evaluating culture and values, and conducting regular audits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 18

    If Fraud Prevention is not

    tackling Fraud, so…???

    PPL IAI, 16 Mei 2023


    Dianne Frisko K., PhD.

    1
    FRAUD PREVENTION

    2
    Organization
    Possibility of
    Control
    Fraud
    System

    3
    Assessing and mitigating the
    probability of fraud that may occurred

    Widespread monitoring by Alerts vendors/contractors to


    employee organization policy

    Compare performance within


    industry and within
    organization

    Carefully analyze
    Establish professional
    performance that looks too
    internal audit department
    good / below standards

    4
    FRAUD INDICATORS
    •BEHAVIORAL INDICATORS
    •ORGANIZATIONAL INDICATORS

    5
    BEHAVIORAL INDICATORS
    • Living beyond means
    • Sudden change in lifestyle
    • Questionable resources/assets and
    luxurious expenditure

    6
    Red Flag of Fraud
    • The Most common red flag since 2008 →
    Individual who are living beyond their means
    or those in financial difficulty
    • Control issues, defensiveness lack of sharing
    duties, close relationship with vendors → High
    risk factors
    • 85% fraud cases, fraudster shows at least one
    behavioral red flag
    • 52% of cases, fraudster show red flag connected
    to their work duties

    ACFE Report to Nation, 20227


    ORGANIZATIONAL INDICATORS
    • Immature organizational structure / culture
    • Absence/non-implementation of sanctions
    • Undisclosed family or related party transaction
    • Fast turnover leadership and key personnel
    • Undefined reporting lines & authorities
    • Undeveloped work progress
    • Lack of transaction trail
    • Excessive adjusting entries (include minimal
    amount)
    • Incompetent staff
    • Resignation of auditors

    8
    Examples of Red Flag/Symptoms in
    organization
    • Consistently late report.
    • Managers who
    regularly assume
    subordinates` duties.
    • Noncompliance with
    corporate directives
    and procedures.
    • Payments to trade
    creditors supported by
    copies instead of
    originals.
    • Negative debit memos.
    • Commissions not in line
    with increased
    sales…etc

    9
    10
    Duration of Fraud ~ Money Loss

    12

    ACFE Report to Nation, 2022


    FRAUD DISCOVERED

    13

    ACFE Report to Nation, 2022


    Detection Method, Fraud Loss and Duration

    ACFE Report to Nation, 2022


    DETECTING FRAUD WITH
    ORGANIZATIONAL SYSTEM

    15
    16
    Enhance/Empower Organization
    Control System
    Hotline/whistle blower
    Organization culture (value)
    Regular Evaluation (audit)

    17
    Thank You

    18

    You might also like