Training on Fraud and Corruption at the Workplace: Detection and Control

Part of the reason why fraud can go undetected and unreported for lengths of time is the fact that it can occur in so many different forms. Usually, though, fraud will fall into three categories: asset misappropriation (stealing or misusing company resources and/or cash), financial statement fraud (misrepresenting information on company financial reports), and corruption (using one’s own or the company’s influence for personal benefit).

LEARNING OBJECTIVES

• What is fraud and corruption
• What types of fraud and corruption risks can exist in your organization
• Why tackling fraud and corruption is important
• Fraud red flags – the early warning signs of potential fraud
• The characteristics of typical fraud perpetrator and characteristics to watch
• The role of effective internal controls in reducing fraud and corruption
• Establish your organization’s commitment to effective fraud and corruption control
• Improve people’s awareness of fraud and corruption risks and highlights the importance of internal controls
• Improve the overall effectiveness of your fraud and corruption management framework

TARGET AUDIENCE

This course is for anyone who is responsible for fraud and corruption prevention, detection and response:

• Prevention – pro-active measures designed to help reduce the risk of fraud and corruption occurring in the first place.
• Detection – measures designed to uncover incidents of fraud and corruption as close as possible to the time when they occur, or before they occur by identifying attempts or acts in preparation.
• Response – reactive measures designed to investigate, take any necessary corrective action, impose sanctions and remedy the harm caused by fraud or corruption.

TRAINING METHODOLOGY

This highly practical and results-oriented program is based on adult learning concept. Gain a wider perspective of time practice through breakout sessions, policy and procedure exercises and case applications to ensure maximum understanding, comprehension and retention of the skills and aptitudes presented. Participants will benefit from role plays covering potential fraud and corruption workplace challenges.

COURSE CONTENT

Module 1 -Fraud and Corruption Control Framework

Preventing and minimizing fraud and corruption risks with a strong emphasis on continually improving staff awareness.

• KeyTopics:

• Strong management commitment
• Resources dedicated to defining, implementing and overseeing fraud and corrupt prevention initiatives
• Availability of various ethics and integrity-related publications for staff
• Various policies and procedures that provide clear guidance to staff on matters such as fraud and corruption control and conflicts of interest/gifts, benefits, and hospitality
• Identification and management of fraud and corruption risks via a comprehensive risk assessment and risk treatment plans
• Pre-employment screening
• Implementing a Fraud and Corruption Control Framework to prevent fraud

Module 2 -Detecting Fraud and Corruption

Implementing measures to early detect fraudulent and corrupt activity.

• KeyTopics:

• An organization-wide fraud detection strategy incorporating continuous monitoring and data mining analytics
• Provision of multiple avenues for individuals to report suspected fraud and corruption
• A risk-focused Internal Audit function, which also undertakes fraud audits
• Availability of internal Public Interest Disclosure officers and documented procedures, with staff, encouraged to make protected disclosures involving suspected improper conduct
• Periodic reviews by qualified external service providers to review high-risk corporate system data and identify any potentially fraudulent or corrupt behavior

Module 3 - Responding to Fraud and Corruption

Putting key response strategies in place for dealing with detected fraudulent and corrupt activity

• KeyTopics:
  • A comprehensive complaint management system which includes a central portal for reporting instances of suspected fraud and corruption
  • Availability of dedicated, experienced (internal and externally sourced) resources for investigating suspected fraud and corruption who operate in accordance with defined investigation standards
  • An independent disciplinary system for dealing with staff who have been found to have committed fraud or acted corruptly
  • Reporting and analysis of fraud and corruption cases to senior management with identification of any emerging trends
  • KPIs for measuring the incidence of fraud and corruption
  • Maintaining relationships with key external oversight and regulatory bodies in relation to the reporting and investigation of fraud and corruption matters
  • Legal processes and insurance to recover losses in the event of financial loss

Module 4 -Stopping Fraud and Corruption

Best approaches for stopping fraud and corruption

• KeyTopics:
  • What’s the best approach for stopping fraud and corruption?
  • What’s wrong with just trusting people?
  • Why isn’t it enough to just sanction someone once such behavior is identified?
  • What can I do to deter fraudulent and corrupt behavior?
  • What is “doing the right thing”?

Module 5 - Internal Controls

Most essential internal controls for deterring fraudulent and corrupt behaviour

• KeyTopics:
  • Segregation of duties, to prevent one person from undertaking an entire transaction alone
  • Clearly established lines of delegated authority and responsibility
  • Position descriptions that clearly represent the jobs people actually do
  • Compulsory clearance of overdue accumulated leave particularly for those in key positions of trust
  • Job rotation (wherever possible) for those in key positions of trust
  • Staff awareness, education, and training to ensure all staff are aware of and can recognize the signs of possible fraudulent or corrupt behavior
  • Adequate protective measures for safeguarding, assets, processes, and data
  • Documentation retained and managed in accordance with records management policy
  • A work environment where people feel comfortable in raising concerns and are not penalized for doing so
  • Ongoing management oversight/monitoring of work functions to verify that controls are operating effectively e.g. reconciliations, confirmations, exception reports
  • Eight tips for great time management and stopping time stealers