Detecting and Preventing Revenue and Receivables Fraud

Why Should You Attend:

The headlines are full of news about high-tech fraud such as data breaches and information theft. But it is a mistake to focus too much attention and resources on protecting the organization from these serious external crimes at the expense of potentially debilitating internal frauds. Among the latter, accounts receivables schemes too often are detected many months or even years after they were initiated, with serious financial losses being the usual consequence.

This webinar will focus on common forms of receivables theft and dissect the specific ways in which management falsifies receivables numbers in order to artificially inflate the organization’s financial numbers. It will cover case studies to illustrate the numerous forms of receivables fraud and will help attendees understand best practices for A/R fraud detection and prevention.

Learning Objectives:

Upon completion of this webinar, participants will be able to:

• Identify the key indicators of receivables theft
• Detect the critical red flags of receivables-based financial reporting fraud
• Formulate an audit plan to pinpoint the red flags of receivables fraud
• Identify weaknesses in the organization’s internal controls that allow receivables fraud to go undetected
• Formulate a framework of best practices for receivables fraud prevention

Areas Covered in the Webinar:

• Statistical overview of the “fraud problem”
• Case studies of actual A/R frauds
• Who commits A/R fraud
• Why employees commit cyber-fraud (The Fraud Triangle)
• Most common A/R frauds
• Red flags of common A/R frauds
• Effective internal controls to mitigate A/R fraud risk

• Lapping
• Skimming
• Statement stealing
• Fraudulent revenue inflation
• Fraudulent receivables manipulation

Who Will Benefit:

• Internal auditors
• External auditors
• Accounts receivable managers
• Senior accounting management
• Internal control management
• Risk managers
• Security managers
• Compliance managers

Instructor Profile:

Peter Goldmann, has 25 years of experience as a business journalist and trainer, having launched, edited and published numerous business trade periodicals covering small business, international trade, management strategy, banking and personal finance. He is a Certified Fraud Examiner (CFE) and a member of the Editorial Advisory Committee of the Association of Certified Fraud Examiners (ACFE) as well as an active member of the Institute of Internal Auditors, the High-Tech Crime Investigation Association and the IOFM Controller Certification Advisory Board. He is a regular columnist for the ACFE’s newsletter, The Fraud Examiner and is a frequent contributor to other leading industry publications on anti-fraud topics. He has appeared on Fox Business News, The Wall Street Journal This Morning, The New York Times and Internal Auditor magazine.

He is president of White-Collar Crime 101 LLC, the publisher of White-Collar Crime Fighter, a widely read monthly newsletter for internal auditors, controllers, corporate counsel, financial operations managers and fraud investigators. Peter is the author of Fraud in the Markets: Why it Happens and How to Fight It, published by John Wiley & Sons, as well as four other anti-fraud books. Peter also developed FraudAware, the leading fraud awareness training program. A user-friendly learning tool, FraudAware uses workshop, Webinar and E-Learning formats to educate employees and managers at all levels in how to detect, prevent and report incidents of fraud or suspicious conduct.

Topic Background:

Any organization’s receivables and revenue are potentially subject to theft by dishonest employees. Schemes involving skimming of customer cash, voiding sales at a retail point of sale and pocketing the cash, as well as misappropriation of customer payments through so-called lapping schemes, all threaten organizations with even the best internal controls in place.
Moreover, accounts receivable is a favorite tool of financial reporting fraudsters. Misrepresenting actual revenue by creating phony customers, along with misclassification of revenue and failing to record liabilities are all revenue-related schemes designed to fraudulently inflate an organization’s financial performance.

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