Seminar on How to Detect and Prevent Fraud in the Workplace

Overview:

According to the Association of Certified Fraud Examiners annual report, nearly half of all small businesses experience fraud at some point in their business lifecycle. Worse, some fraud is committed by a "loyal"  employee.

In this course we will define what is fraud, how to identify fraud schemes, typical frauds, contract fraud, e-commerce fraud, false invoicing plus review actual fraud cases and learn fraud indicators.

Below are examples of four different kinds of fraud we will discuss.

1. Payroll fraud.
   The best way to prevent payroll fraud is to reconcile all balance sheet accounts and payroll records monthly or, at the very least, quarterly. Look for any discrepancies and investigate them until you have a clear answer.
2. "Double check" fraud.
   It is very hard for business owners to catch this type of activity. As a business owner, it is difficult to find good accounting help, but it is important to have more than just one person signing checks and reconciling the bank account.
3. Over-ordering fraud.
   The easiest way for this business to have avoided this type of fraud is to do the right thing from the start. Good employees pay for themselves on average tenfold, and bad employees can ruin companies.
4. "Friendship" fraud.
   Never hire anyone solely based upon friendship, family, obligation, or feelings of sympathy. Build a culture of accountability, measure results, and make sure everyone knows that you are looking at their performance. Then, hire based on talent, and pay for that talent to perform at a high level of accountability and integrity.

In this information rich seminar we will discuss integrity, ethics, code of conduct, principles of professional practice. Standard of professional conduct internal controls, how to establish internal controls and the government contracting process. Others areas including but not limited to; Contract fraud, Common fraud schemes, health care fraud, governmental fraud, employment fraud, operational fraud plus action required, criminal and civil penalties.

We will have group fraud cases assigned for presentation by the group including what should have been done to avoid the fraud.

Why should you attend:

Fraud refers to illegal acts that intentionally divest the funds of a company through deception or scams. Industry professionals estimate that businesses lose approximately 5% to 6% of their revenues due to fraudulent transactions each year. The average fraud takes approximately 18 months to discover!

If unchecked or not discovered these losses tend to quickly escalate, decreasing profitability, eroding shareholder confidence, causing brand damage, bringing negative press, and increasing regulatory scrutiny (often leading to fines, sanctions and penalties).

This information rich seminar teaches participants techniques and approaches to address business fraud. This webinar will enhance your knowledge of your job by helping you understand the elements / types of fraud. Fraud prevention controls are a key part of any organization's continued growth, performance and success.

With fraud at a all time high, a well designed internal control structure will enhances operations by improving your department's over security, effective and effectiveness. As all business mangers, officers, owners and employees know without an effective system, the organization may be open to fraudulent transactions, theft, hefty fines, penalties, fines stricter government laws and rules.

US companies alone, lose approximately 6% to 8% of their Gross Revenue to fraudulent transactions each year.

Last years Fraudulent Transactions percentages:

• 28.7% Billing Schemes
• 33.0% Corruption Schemes
• 22.1% Check Schemes
• 8% Non-Cash Schemes
• 7% Skimming
• 1.2% Other Schemes

This world of globalization, is requiring businesses to become more competitive. Fewer resources wasted, resources mobilized, setting directions and taking action.

• Introduction
• Opening Questions and Answer Session (Q & A)
• Overview of course (Fraud Statistics & Fraud Costs)
• What is Fraud? Definition
• How to identify fraud schemes and fraud indicators
• Internal Controls (How to establish IC's) 17 principles
• Processes of formulation and implementation
• How to develop steps for internal controls
• How to develop tools for internal controls
• How to benefit from these tools.
• Indicators of Procurement Fraud
• The Government Contracting Process
• Government procurement regulations and procedures
• Government contracting practices and procedures
• Understanding small and minority business programs
• Governmental Internal Controls
• The Importance of Contractor Integrity to the Contracting Process
• Ethical principles/ Code of Ethics/ Standards
• Principles of Professional Practice/ Code of Conduct
• Standards of Professional service
• Business Ethics, Ethical Dilemmas
• Employee training
• Contract Ethics, Supplier Ethics, Employee Ethics (Control Environment)
• Learn Best Practices;
• How to evaluate your systems strengths and weaknesses
• Characteristics of successful Internal Control System
• How to outline a internal control plan, processes, objectives, components and requirement for effective controls
• Typical Frauds Relating to Contracting
• Contract Fraud Defined (Actual Classroom Examples)
• Actual Contract Cases Reviewed and Discussed In Class
• Major Contract Fraud Schemes
• E-Commerce fraud/ Internet Fraud
• False statements, false claims, product substitutions
• Accounting Fraud, Operational Fraud
• Fraud Schemes Related to Special Contracts
• Common Fraud schemes related to contracts
• Traditional Fraud Schemes: Employment Fraud
• Health Care & Health Insurance fraud
• Remedies for Contract Fraud
• Action/ Penalties, Criminal, Civil, Administrative and Contractual Action in response to fraud

Who will benefit:

• Business Professional
• Business Owner
• Managers, Supervisors
• Procurement Departments
• Accounting Managers
• Accounting Personnel
• Compliance Managers
• Controllers
• Presidents / Vice Presidents
• Marketing Personnel
• Retail Businesses Owners.
• Business Vendors
• Anyone who wishes to increase or refresh their knowledge of these areas

Lecture 1: Introduction

·         Opening Questions and Answer Session(Q & A)

·         Overview of course(Fraud Statistics & Fraud Costs)

·         Purpose of course What is Fraud? Definition

·         How to identify fraud schemes and fraud indicators

·         Indicators of Procurement Fraud, Using Internal Controls

Lecture 2:            

·         The Government Contracting Process

·         Government procurement regulations and procedures

·         Government contracting practices and procedures

·         Understanding small and minority business programs

Lecture 3:            

·         The Importance of Contractor Integrity to the Contracting Process

·         Ethical principles/Code of Ethics/Standards

·         Principles of Professional Practice/Code of Conduct

·         Standards of Professional service

·         Business Ethics

Lecture 4:            

·         Ethical Dilemmas

·         Importance of Internal Controls

·         Employee training Contract Ethics, Supplier Ethics, Employee Ethics

*Group Fraud Cases Assigned for Presentation by Group:

(Groups will be assigned Fraud Cases, which they will have to review, present the type of fraud, how it was committed, costs and remedy, including internal control weakness:)

Day 2:

Lecture 1:               

·         Open Questions and Answer

·