Business fraud happens.
Fraud can and will affect every organization sooner or later and to varying degrees—whether it is a small-dollar theft of assets, a systematic embezzlement of funds by a “trusted” accountant, or a major book-cooking financial statement fraud with catastrophic ramifications. Everyone needs to be aware, vigilant, and proactive concerning fraud deterrence, prevention, and detection — the business owner, investor, controller, CFO, manager, financial statement preparer, internal or external auditor or governing board member. Perhaps the biggest hurdle to overcome in the fight against fraud is the attitude that most organizations have that “it can’t happen here.”
This year’s edition is a fast moving seminar that will provide a comprehensive look at fraud from the technical, legal, and operational perspectives and update participants on the most recent legal and regulatory developments in this important area of professional responsibility. Particular attention and focus will be directed to "best practices" for implementing the recently-revised Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission. In particular, the updated COSO Framework includes a new principle focused specifically on fraud:
The organization considers the potential for fraud in assessing risks to the achievement of objectives.
According to the new COSO framework, there are four important points of focus that need to be considered to address this principle. A COSO-compliant organization will:
- Consider Various Types of Fraud—The assessment of fraud considers fraudulent reporting, possible loss of assets, and corruption resulting from the various ways that fraud and misconduct can occur.
- Assess Incentive and Pressures—The assessment of fraud risk considers incentives and pressures.
- Assess Opportunities—The assessment of fraud risk considers opportunities for unauthorized acquisition, use, or disposal of assets, altering of the entity’s reporting records, or committing other inappropriate acts.
- Assess Attitudes and Rationalizations—The assessment of fraud risk considers how management and other personnel might engage in or justify inappropriate actions
To assist COSO users in meeting these new fraud related requirements, COSO has recently issued a Fraud Risk Management Guide. Our ACPEN panel will include the principal authors of this comprehensive guidance. They will explain the 5 principles for effective fraud risk management and explain the key points of focus under each principle. The Guide also contains important information on how data analytics can be employed to prevent and detect fraud.
Several tools have also been developed for
- (a) establishing a fraud risk governance process,
- (b) documenting the fraud risk assessment process,
- (c) performing fraud risk management self-assessments,
- (d) tracking how the organization protects itself against fraud risks, and
- (e) managing allegations and investigations of fraud.
Our panel of legal experts (prosecutors and white-collar defense lawyers) will weigh in on this new guidance from their special points of view.
Participants will learn and master new skills for meeting their professional, legal and ethical responsibilities to make reasonable efforts to deter, prevent, and detect fraud.
Business fraud happens. This program will help accountability professionals manage the risk of fraud effectively and proactively.
- Discuss and consider various types of fraud
- Learn best practices to prevent and detect fraud
- Business Fraud
- COSO Frameworks
- David L. Cotton, CPA, Cotton & Co., LLP, Alexandria, VA