- 1. "Fraud Detection and Prevention Techniques Using Excel" May
8, 2013 Special Guest Panelist: Charlie WalkerReinvent Data
LimitedCopyright 2013 FraudResourceNet LLCAbout Peter Goldmann,
MSc., CFE President and Founder of WhiteCollar Crime 101 Publisher
of White-Collar Crime Fighter Developer of FraudAware
anti-fraudtraining courses Monthly columnist, The Fraud Examiner,
ACFE Newsletter Member of Editorial AdvisoryBoard, ACFE Author of
Fraud in the Markets, published by Wiley; available at
Amazon.com)Copyright 2013 FraudResourceNet LLC
2. About Jim Kaplan, CIA, CFE President and Founder of AuditNet,
the global resource for auditors Auditor, Author, Web Site Guru,
Internet for Auditors Pioneer Recipient of the IIAs 2007 Bradford
Cadmus Memorial Award.Copyright 2013 FraudResourceNet LLCCharlie
Walker Managing Director atReinvent Data Limited Chartered
Accountant andExcel expert Creator of TopCAATs, anExcel based CAATs
package Author of The UltimateGuide to Auditing with ExcelCopyright
2013 FraudResourceNet LLC 3. Webinar Housekeeping This webinar and
its material are the property of FraudResouceNet LLC. Unauthorized
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follow along with the handout.Copyright 2013 FraudResourceNet
LLCDisclaimers The views expressed by the presenters do not
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by FraudResourceNet LLC Copyright 2013 FraudResourceNet LLC5 4.
Todays Agenda Introduction Fraud Statistics Auditors Role in Fraud
Detection Principles of Data Analytics Why Excel Getting Started
(including 30 tests to try out) Going Forward Questions &
Answers Copyright 2013 FraudResourceNet LLCFraud: The Big Picture
According to major accounting firms, professional fraud examiners
and law enforcement: Fraud costs the world $3.5 TRILLION per year.
(5%) (ACFE) Business losses due to fraud increased 20% in last 12
months, from $1.4 million to $1.7 million per billion dollars of
sales. (Kroll 2010/2011 Global Fraud Report) 75% of the companies
surveyed experienced at least one incident of fraud in the last 12
months (KPMG) Average cost for each incident of fraud is $160K
(ACFE) Skimming is 4th most common internal fraud; $60K per
incident Larceny is 5th most common internal fraud; $100K per
incident Approximately 60% of corporate fraud committed by insiders
(PwC) Copyright 2013 FraudResourceNet LLC 5. The Auditors RoleIPPF
Standard 1210.A3 Internal auditors must have sufficient knowledge
ofavailable technology based audit techniques to perform their
assigned workCopyright 2013 FraudResourceNet LLCIIA Guidance GTAG
13 Internal auditors require appropriate skills and should use
available technological tools to help them maintain a successful
fraud management program that covers prevention, detection, and
investigation. As such, all audit professionals not just IT audit
specialists are expected to be increasingly proficient in areas
such as data analysis and the use of technology to help them meet
the demands of the job.Copyright 2013 FraudResourceNet LLC 6.
Professional GuidanceCopyright 2013 FraudResourceNet LLCPrinciples
of Data Analytics to Detect Fraud Using set rules to identify
transactions of higher risk Every company is different, has a
different environment, different systems, different risks, etc.
Need to use judgment to select testing Need to use judgment to
evaluate results Just because a transaction matches a red flag
doesnt mean fraud is present Using data analytics does not
guarantee finding fraud or finding all fraud! Copyright 2013
FraudResourceNet LLC 7. Why Excel Youve already got it installed
Youre already using it on a daily basis Its easy to get started
with the basics Theres a huge amount you can do as your skills
develop Skills learned here can be carried forward Copyright 2013
FraudResourceNet LLCPolling Question 1Copyright 2013
FraudResourceNet LLC 8. Limitations of Excel Requires manual
formula entry Often many steps involved Restricted file sizes Not
really designed for this type of workCopyright 2013
FraudResourceNet LLCKey Excel Features AutoFilters Pivot Tables IF
Formulas VLookUpCopyright 2013 FraudResourceNet LLC 9. Getting
Started Start with the easy stuff no point trying to run before you
can walk! Have a well thought out plan Invest time in getting the
right data in the right format Remember to save regularly Just do
it whats the worst that can happen?Copyright 2013 FraudResourceNet
LLCPolling Question 2Copyright 2013 FraudResourceNet LLC 10. The
Data Analytics CyclePlan your testingRequest DataReviewContinual
Learning Evaluate and Follow upObtain and Clean DataCarry out
testingCopyright 2013 FraudResourceNet LLCGetting the data Speak to
IT departments not just process owners Flat files (e.g. .csv) are
best Be specific the more information you can provide the
betterCopyright 2013 FraudResourceNet LLC 11. Accounts Payable
Testing Duplicate Vendors Vendor Employee Relationships Split
transactions Transactions posted on unusual days/dates/times
Invoice date before purchase order date Rounded transactions
Potential Related Parties Reversing changes to standing data
Benfords Testing Summarize transactions by user Copyright 2013
FraudResourceNet LLCPolling Question 3Copyright 2013
FraudResourceNet LLC 12. PCards and TCards Transactions at foreign
merchants Split transactions Purchases on weekends/holidays
Multiple cards per cardholder Inappropriate vendor transactions Top
Cost Centers/Card Holders Monthly limit exceeded Duplicate Claims
Transactions just below authorization limits Round AmountsCopyright
2013 FraudResourceNet LLCPayroll Testing Duplicate or ghost
employees Duplicate payments Excessive payments Employees paid
after termination Unauthorized overtime Leave never taken Non
Consecutive leave Only person working overtime Still in work not
claiming overtime Cancelled and re-issued checksCopyright 2013
FraudResourceNet LLC 13. Polling Question 4Copyright 2013
FraudResourceNet LLCGoing Forward Build up a regular Test set Dont
be afraid to experiment Share ideas Internally resource library,
regular meetings Externally forums, webinars, LinkedIn Upgrade from
Excel to dedicated CAATs software many of your skills will be
transferableCopyright 2013 FraudResourceNet LLC 14. TopCAATs Suite
of over 130 tools for Auditors and Accountants Runs completely
within Excel Mixture of data analytics and Excel productivity tools
Allows wider variety of work/testing and greatly improves
efficiencyCopyright 2013 FraudResourceNet LLCPolling Question
5Copyright 2013 FraudResourceNet LLC 15. 10 Excel Resources for
Auditors 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.Auditing with Excel book
www.auditingwithexcel.com/auditnet Evaluating CAATs report
www.topcaats.com/auditnet TopCAATs www.topcaats.com ActiveData for
Excel http://www.mrexcel.com/auditors.shtml Using Excel as an Audit
Software available eBook from AuditNet Using Excel to Detect Fraud
(e-book). Excel for Auditors by Bill Jelen Fraud Detection with
ActiveData For Excel Using Excel to Ferret Out Fraud Find Financial
Fraud Using Benfords LawCopyright 2013 FraudResourceNet
LLCQuestions? Any Questions? Dont be Shy!Copyright 2013
FraudResourceNet LLC 16. AuditNet Survey 2013 Fraud Detection
Techniques Using Technology Please help us by taking the surveyScan
the QR Code with your Mobile Device Or Visit
https://www.surveymonkey.com/s/Z6XZ8DW Copyright 2013
FraudResourceNet LLCComing Soon Fraudulent Documentation:
Fraudsters Secret Weapon ... How to Disarm Them, May 29 An Experts
Advice on Establishing an Organization Wide Fraud Policy, June
5Copyright 2013 FraudResourceNet LLC 17. Thank You! Website:
http://www.fraudresourcenet.com Jim Kaplan FraudResourceNet
800-385-1625 [email protected] Peter Goldmann
FraudResourceNet 800-440-2261 [email protected]
Charlie Walker, ACA Reinvent Data Limited www.reinventdata.com
[email protected] Copyright 2013 FraudResourceNet
LLC