Fraud Awareness presentation applicable to managers, executives, employees, internal auditors and CPAs

3. Where Our Issues Overlap

4. Prevention/Deterrence Prompt Detection Effective Response FRAUD RISK MANAGEMENT

8. Preventing Fraud: Assessing the Fraud Risk Management Capabilities of Today’s Largest Organizations www.protiviti.com

13. What do we mean by Fraud ?

15. Error versus Intent to Deceive

17. Three Categories Misappropriation Manipulated Results Corruption

24. Is it Wrong to Commit Fraud? ATTITUDE

32. Completely Dishonest Completely Honest Pressure Attitude Opportunity Honesty Scale

33. The Fraud Triangle Opportunity Pressure Attitude

36. Management Override Inherent “ Macro” Risk ???

43. SAS 99: Consideration of Fraud Required audit team brainstorming session

44. SAS 99: Consideration of Fraud Introduces “ Human Psychology” into the audit process

47. SAS 99: Consideration of Fraud Commission Conversion Concealment

48. SAS 99: Consideration of Fraud Required Skills Communication Technology Forensic Accounting

54. COSO Control Framework

56. HI LOW HI HARD CONTROLS SOFT CONTROLS

57. Internal Controls HARD CONTROLS Policies Procedures Systems Soft Controls Simply: The competence, attention and integrity of the people

59. “ Business” Controls The processes designed to provide reasonable assurance regarding the achievement of business and operating objectives Effectiveness and efficiency of operations Measures HDWK

60. Managing the Business Risk of Fraud: A Practical Guide July 7, 2008

75. Detection Controls Prevention Controls Indicator Fraud Risk HARD CONTROLS Soft Controls

81. Override / Collusion Shadow Deals Time SPECIAL CHALLENGES