FOCUS on fraud
Texas.
Leslye Givarz, CPA, was a
Winning the risk game
FOR MORE ON THIS TOPIC:
the Governmental Suites in Norman, Oklahoma.
Visit site for “Fraud Guide” and other tools: Visit ACFE. ACFE “Fraud Risk Guide” and download its and reports, and
20 CPAFOCUS
Lehman Brothers. Or the more than 20,000 former employees of defunct Enron. Or the millions of fraud victims around the world. In spite of evidence that fraud can occur in organizations when individuals are motivated in that direction, many organizations sometimes underemphasize the importance of fraud deterrence, prevention and detection. Fraud is almost always devastating to an organization. It’s not just the monetary and reputational damage; the sense of betrayal and loss of trust in employees and leaders can have long-lasting impacts. Organizations can prevent massive, paralyzing frauds. And they can detect small frauds before they become massive frauds. Fraud risk management guidance is available for well-
F Sidebar A
Visit website for Fraud Risk Management Guide and other tools Visit
ACFE.com/fraudrisktools
to purchase the new COSO/ACFE Fraud Risk Management Guide and download its executive summary. You can also access frameworks, reports and magazine articles, plus these free tools:
Interactive scorecards Use scorecards to access the
the comprehensiveness and effectiveness of your organization’s fraud risk management program. (For more information about the principles, see the Fraud Risk Management Guide.)
Library of anti-fraud data analytic tests
Explore an interactive tool that details by fraud risk type how to
integrate data analytics tests into your fraud risk assessment or investigative work plans. The library of test examples displays a variety of tests to consider and is organized by categories of occupational fraud risks.
Risk assessment and follow-up action templates This Excel spreadsheet provides a risk assessment matrix—which you can use with the foundational matrix in the Fraud Risk Management Guide—to document your organization’s fraud risks and controls. The template automatically
creates a heat map that shows the risk ranking page that displays each fraud risk exposure from most to least severe and a control-activities
and evaluation of each existing control activity related to each fraud risk exposure. The template also provides
space to identify additional control activities and to record your organization’s response plan for each exposure. In addition, the template contains pages to record allegations of suspected fraud, to document investigations and outcomes and to record risk management monitoring plans.
Points of focus documentation templates
Use these Excel templates to help create consistent and uniform documentation related to fraud risk governance, fraud risk assessment, fraud control activities and fraud examination and follow up.
raud can’t happen to us.” Tell that to the C-suite of Wells Fargo. Or the devastated Madoff investors. Or the managers at
run organizations that commit to protecting stakeholder assets. Managing fraud risk is a systematic process that has benefits beyond protecting assets and reputations. Many of you work for organizations that have been intensely looking for ways to prevent fraud for years. However, just as many of you (possibly more) have been trying to persuade management to learn the techniques of fraud examination and construct realistic measures to fend off fraud in its many forms. Tis article is for both groups— and all those in between. Here’s renewed hope for organizations of
all sizes: the new COSO/ACFE “Fraud Risk Management Guide.” (Visit
ACFE.com/ fraudrisktools to download a free copy of the executive summary or buy the entire guide. See sidebar A below.)Te new guide is built on the foundation of the efforts of many since the 1980s. Te Committee of Sponsoring
May/June 2018
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