Fraud affects more than organizations. Identity theft and the Internet have brought fraud right into our homes and can affect every part of our lives. Do we possess the right tools to adequately prevent, detect—in short—protect ourselves from becoming victims of fraudulent activities? This program will explore this interesting aspect of fraud. It will give an overview of fraud, concentrating on fraud prevention and detection procedures that will help both the small businesses and publicly held companies. This program will cover the characteristics of fraud, proactive approaches to detecting fraud, and methods of fraud investigations. It will explain how the Internet has expanded the reach of fraud, as well as how it can hamper criminal convictions regarding fraud activities.

Use of Materials

Audio or DVD
The user should begin by watching the DVD segment or listening to the audio CD for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. It may be helpful to highlight important material and/or to make additional notes. Next, the user should complete the study questions at the end of the chapter and review the answers. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the DVD or listening to the audio CDs and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or DVD or audio CDs that were difficult. When the user is ready, s/he should complete the quizzer. Reviewing notes periodically will increase retention of the material.

Online
The user should begin by watching the streamed video segment, if any, or listening to the streamed audio segment, if any, for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. After the user has studied each chapter, s/he should click on the link at the left to complete the interactive study questions. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the streamed video, if any, or listening to the streamed audio, if any, and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or video/audio, if any, that were difficult. When the user is ready, s/he should click on the link to the left to complete the quizzer. The user's CPE certificate will be provided immediately upon successful completion of the quizzer.

Software
The user should begin by reviewing the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. As the user studies each chapter, s/he should complete the interactive study questions that appear in the lower panel of the screen. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text that were difficult. When the user is ready, s/he should click on the link at the far left to complete the quizzer. The user should email her/his quizzer statistics using the quizzer submission link in the software and the user's CPE certificate will be mailed to her/him.

Chapter 1 gives an overview of fraud.

Chapter 2 concentrates on the prevention of fraud.

Chapter 3 discusses the detection of fraud.

Chapter 4 examines the activity of concealing fraud.

Chapter 5 identifies various sources of information that may be useful in fraud investigations.

Chapter 6 identifies different inquiry techniques used in fraud investigations.

Chapter 7 outlines the proper way to prepare a fraud report.

Chapter 8 focuses on Internet fraud.

Chapter 9 identifies the different ways identity theft can occur.

Chapter 10 defines "qui tam suits" and identifies various whistleblower statutes and protections.

Chapter 11 examines Benford's Law and how it pertains to fraud detection.

The Appendix gives an example of an organizational code of conduct, which includes definitions of what is considered unacceptable, and the consequences of any breaches thereof.

Throughout this program, the user will find explanations and discussions regarding some of the issues that often face practitioners. In order to enhance the user's comprehension of the material and highlight important practical considerations, this publication includes the following designations:

A Biskpoint presents analysis or commentary that attempts to explain or clarify authoritative guidance.

A Bisktip provides practical advice that may be used to help improve client service or service to the practitioner's organization.

• Define fraud

• List the three elements necessary to prove fraud

• Evaluate the risks of fraud and implement the processes, procedures, and controls needed to mitigate the risks

• Develop an appropriate oversight process

• Identify the symptoms of fraud

• Discuss how accounting anomalies can help detect fraud

• Identify theft investigation methods

• Explain concealment investigation methods

• Discuss how to obtain documentary evidence

• Recognize when to involve document experts in a fraud investigation

• Discuss the net worth method and how it is used in fraud investigations

• Explain how to prepare a fraud report

• Identify the common types of Internet fraud schemes

• Explain the origin of qui tam suits

• Discuss the rationale behind Benford's Law

• Explain how Benford's Law can be applied in practice

Mr. Madray earned an undergraduate degree in Accounting and a Master of Professional Accountancy from Clemson University. He is a past member of the AICPA Accounting and Review Services Committee and a current member of the Board of Directors of the SC Association of CPAs. He is the author of numerous publications and articles on accounting and auditing topics, including the AICPA's Compilation and Review Alert. In addition, he speaks to hundreds of groups each year on accounting and auditing topics and has made presentations in more than 40 states. He has more than 15 years of professional experience, including 10 years in public practice. In 1996, he formed The Madray Group to support and facilitate the range of services offered by CPAs to their clients and to enable CPAs to meet the changing needs of their profession. Mr. Madray also serves as a senior lecturer at Clemson University's School of Accountancy and Legal Studies. (Author/Speaker)

Kurt G. Oestriecher, CPA, is a partner with Oestriecher & Company of Alexandria, Louisiana. Mr. Oestriecher is partner in charge of accounting and auditing services, and is also involved in litigation support and small business consulting engagements. In addition to his client responsibilities, Mr. Oestriecher has served as a discussion leader for numerous accounting and auditing courses. Mr. Oestriecher was presented the 1998 and 2005 Outstanding Discussion Leader Award by the LCPA, and received the 2006 AICPA Outstanding Discussion Leader Award. Mr. Oestriecher is a member of the AICPA and the Louisiana Society of CPAs (president, 2002). He has also served on the AICPA Accounting and Review Services Committee (2000-04), and is a past member of the AICPA Council. He is a member of the AICPA Joint Trial Board and the AICPA Virtual Grassroots Panel. (Speaker)