Personalized Statistical Fraud Risk Report

The objective of the report is to provide a tool for management to adequately create a strategy to mitigate, avoid, accept, or transfer fraud risk. A detailed set of analysis is performed so as to be a roadmap for management to take action to address the risk for fraud by providing:

* Visibility into the organization’s fraud risk;

* An understanding of fraud risk by department and scheme;

* Prioritization of antifraud efforts;

* Ability to quantify impact and likelihood for COSO Enterprise Risk Management (ERM); and

* Benchmark for Key Risk Indicators (KRIs).

Continue Reading

New Benford’s Law Model

We have developed a new model for Benford’s Law analysis. You can analyze naturally occurring numbers (e.g. transaction level data) to see if the actual distributions conform to Benford’s Law. Under certain conditions, deviations from Benford’s could indicate the possibility of human manipulation, i.e. fraud. Therefore, those results would require additional scrutiny. This analysis provides a direction of inquiry. This is a model for Benford’s Law analysis built in MS Excel which calculates graphical and tabular results for the following tests:

Continue Reading

Training in Tanzania, Africa

I had the pleasure of teaching a three and a half day antifraud seminar at the Serena resort in Dar es Salaam, Tanzania, Africa. Participants included C-Suite, management from Legal, Banking Services, Internal Controls, and Global Corporate Audit departments from many countries across the continent. Topics included:

Continue Reading

Hospital Analogy for the Global Antifraud Program

I created this short video for a company to illustrate both the components and status of the Global Antifraud Program.  It was shown at the beginning of the meeting to facilitate the conversation about the program. (2013 Copyright [wpvideo 5jxBReaH] (4:42)   Global Antifraud Program OBJECTIVE: To manage the fraud risk. GOALS: Prevention, Detection and Deterrence. COMPONENTS: Governance, Fraud Awareness Training, Fraud Risk Assessment, Investigations, and Continuous Monitoring.

Continue Reading

Fraud Training Topics – What is on your mind?

Fraud Training Topics – What is on your mind?  I am in the process of designing training related to antifraud measures, forensic accounting, data analysis, and fraud investigation.   What training are you currently taking now? Are you satisfied with your current fraud training? What do you need in terms of fraud training in order to be successful at your job? What fraud topics are you interested in? What is your wishlist for fraud training?

Continue Reading

Employment Background Screenings and the New EEOC Guidelines

Employment Background Screenings and the New EEOC Guidelines             The U.S. Equal Employment Opportunity Commission (EEOC) is tasked with preventing workplace discrimination.  Under Title VII, employment discrimination is prohibited based on race, color, religion, sex, or national origin.  Under the new guidelines (“New EEOC Guidelines…”, 2012) issued in April, an employer may potentially avoid Title VII discrimination with an Individual Assessment.  Prior criminal conduct can exclude an applicant from employment consideration if the following conditions are met:

Continue Reading