After a fraudulent act is exposed, employees from the organization in question will invariably recognize transactions or aspects of such transactions that in hindsight, appeared to be suspicious. It is also accurate to suggest that upon an initial review of these transactions, warning signs or ‘red flags’ were ignored, or deemed to be irrelevant. This should come as no surprise, as most employees generally have limited, if any, formal anti-fraud training.
The purpose of anti-fraud training is four-fold: first, to establish a common understanding and awareness of which acts constitute fraud; second, to determine what motivates fraudsters to engage in such illicit activity; third, to identify the methods by which these frauds are perpetrated; and finally, to recognize the potential indicators of fraudulent transactions.
Auditors are expected to find fraud, yet have limited formal fraud training
One of the most daunting challenges as an internal or external auditor is detecting fraud, particularly for auditors who have never previously encountered a fraud. In fact, most accountants who perform external financial review or audit engagements possess a limited amount of formal fraud training, if any at all. It is unreasonable to expect them to catch fraudsters when questionable transactions are directly related to the company’s financials. It is not realistic to expect auditors to do this when in many situations, they lack the insight to recognize indicators of fraud.
nagel + associates offers a variety of training courses specifically developed for external and internal auditors, which can be delivered in-person, online or via video conferencing to accommodate multiple departments and/or office locations simultaneously. Our training lays the foundation required for auditors to perform their duties effectively, and provides practical, hands-on case studies that help them to identify the not-so-obvious indicators of fraud in order to ‘out’ fraudsters before they can commit illegal acts that may have a massive impact on their client’s or their organization’s bottom line.
Training for Corporations, the Public Sector and NPOs
Employees frequently take directives from senior management, and their behaviour is often learned when an organization’s leadership leads by example. The oft-used adage of ‘tone at the top’ is best illustrated when an organization’s leadership expresses an interest in, and commitment to, promoting strong corporate governance and adhering to policies and procedures. Naturally, good governance will trickle down to employees, who are sure to follow suit.
nagel + associates recognizes that an organization’s struggle with balancing operational budgets can be a delicate process when considering the benefits of proactive vs. reactive engagements relating to fraud risk management. Most are content to not undertake pre-emptive actions until they are faced with a real fraud allegation. In situations such as these, opportunities are missed, and in the long run, a greater expense to the organization is incurred.
We work closely with our clients in the private, public, and not-for-profit sectors in developing customized training programs that focus on particular accounting cycles (e.g. purchasing or payroll), and general courses that address a broad range of fraud awareness initiatives and fraud prevention topics. Our experience has shown us – and our clients – that training is an easy and effective way to start the conversation about fraud and to keep complacency out of the equation!