The Essentials of Fraud Prevention, Fraud Detection, and Forensic Accounting

81 Pages·2017·1.49 MB·English

The Essentials of Fraud Prevention, Fraud Detection,
and Forensic Accounting
Presented by:
Anthony S. LaNasa, CPA, CFE
Audit and Accounting Principal
Bob Evans, CPA/ABV, CFF, CGMA
Audit and Accounting Senior Manager

Delaware Chamber of Commerce

Business Education & Development Committee
March 14, 2017
HW&Co. – CPA’s and Advisors
 Top 200 regional public accounting and consulting firm
Columbus - Westerville (Delaware County)
-
Cleveland area- Beachwood and Mentor
-
 Columbus office – full service office with 20 employees
 Main focus areas
– Privately held, small business
– Entrepreneurs, Health Care, Non-profit, Technology
 Tax, Accounting/Auditing, Health Care

Copyright © 2017 HW&Co. All Rights Reserved. 2
Objectives
 Fraud triangle (Edwin Sutherland and Donald Cressey, creators)
Pressures
-
Opportunity
-
Rationalization
-
 Business risk assessment
 Fraud prevention techniques
 Fraud detection techniques
 Sample fraud event protocol
 Fraud case studies

Copyright © 2017 HW&Co. All Rights Reserved. 3
Fraud triangle
Pressure
Copyright © 2017 HW&Co. All Rights Reserved. 4
Personal financial pressures
 Standard of living
 Living beyond means
 High personal debts or poor
credit
 Student loan repayments
 Extended family issues
 Vices
 Unexpected crisis
 Change in life situation

Copyright © 2017 HW&Co. All Rights Reserved. 5
Organizational financial pressures
Increase in costs
Staffing issues
Workload increase for those who remain
Reimbursement reductions
Shrinking budgets
Increase in costs
Regulatory pressures
Copyright © 2017 HW&Co. All Rights Reserved. 6
Opportunity
Internal
controls
Opportunity
Copyright © 2017 HW&Co. All Rights Reserved. 7
Rationalization theory
Totally honest
Dishonest
Situationally honest
Copyright © 2017 HW&Co. All Rights Reserved. 8
Rationalization

I had to steal to Management

provide for my family does not care

I’m worth more than
Everybody is
I’m paid
doing it
The government/insurance
company wastes millions of
I’m just “borrowing”
dollars
Copyright © 2017 HW&Co. All Rights Reserved. 9
Association of Certified Fraud Examiners
To understand how to deter and avoid fraud, you first should understand
who is committing fraud, and how these cases were detected.
http://www.acfe.com/fraud-resources.aspx
The 2016 Report to the Nations on Occupational Fraud and Abuse examined
2,410 cases of occupational fraud that occurred in 114 countries.
Copyright © 2017 HW&Co. All Rights Reserved. 10