Internal Auditing and Fraud

The fraud has significantly negative impact on the organization that may include financial reputation; social implications and the psychological implications. As per the surveys the financial loss from the fraud are found to be significant. Though, cost of fraud is never measureable in term of the time, the productivity including the reputation of customer relationships. Organizations can be harmed depending upon the loss severity that is caused due to the fraud activities. The organizations need very strong fraud program that involves its awareness, its prevention, and detection of the key program including the process of assessing the risk so that risk could be identified within the organization.

Frauds are characterized into three types:

• Pressure or incentive: the fraudster is trying to commit the fraud so that personal needs could be met
• Opportunity: the ability of the fraudster’s for committing the fraud
• Rationalization: the ability of the fraudster’s to satisfy in his mind for the committed fraud

Effective fraud management program is comprised of:

• Company policy for the ethics: “tone at the top” from the senior management.
• Awareness of the fraud awareness: to understand nature of the fraud, its causes and the characteristics
• Assessment of Fraud: to evaluate risk of different types of fraud.
• Ongoing reviews: an audit activity which considers the fraud risk in each of the activity and then performs the most appropriate procedure that is based upon the type of the risk
• Prevention and detection: the efforts that are taken in order to reduce the fraud opportunities that will occur and to motivate the individuals not to commit fraud because of the likelihood of getting the punishment
• Investigation: to investigate procedures and the resources and then reporting the event of the fraud.

The course is targeting the Chief Audit Executives (CAEs), executive board members, operating management, assurance providers (OAPs), and professional regulatory bodies.

IKL Certificate

• Introduction
• Executive Summary
• Defining the term fraud

Awareness of the fraud

• Fraud reasons
• Fraud examples

• Potential Fraud Indicators

• Roles and responsibilities for fraud

Internal audit responsibilities during audit engagement

• To conduct the audit engagements
• Internal auditor skepticism
• To communicate with the Board

Fraud Risk Assessment

• To identify the factors of the fraud risk
• To identify the potential of the fraud and to prioritize the frauds based on the risks
• To map the controls to potential frauds and the identified gaps
• To test operating effectiveness of fraud prevention and detecting controls
• To have documentation and report on the fraud risk assessment

Detection of the fraud and prevention

• Prevention of the fraud
• Training of the fraud
• Detection of the fraud

Investigation of the fraud

• Process of investigation
• Role of the internal auditing in investigations
• To conduct the investigation
• To report the fraud investigations
• Resolution of fraud incidents
• Fraud incidents communications
• Analyze the lessons that are learned

Institute of Knowledge and Leadership (IKL) has emerged on the global map of learning, talent development and executive education as a highly advanced and qualified training platform. IKL is based in Dubai and serves prominent clients from across the MENASA region.

The distinctive factor about IKL is its significant, highly qualified and skilled pool of global trainers, primarily equipped with state of the art training methods and techniques coupled with the passion to share knowledge and to co - create a value proposition with organizations and their teams. IKL has trainers across the globe from 25 nationalities, over 200+ knowledge areas, and with a cumulative training, knowledge creation, sharing, and dissemination experience for over 1000+ years with over 2 million participants globally.