Expense Reimbursement Fraud

Why Should You Attend:

If you are reviewing entertainment expenses and find discrepancies, how often do you hear management say, “What’s the big deal? Or….How bad could it be?” This is a prime indicator that there is a gap in understanding of the importance of simple internal controls and a sound control environment.

With today's advanced technology and digital media one would think that tracking simple T&E expenditures would be efficient. Yet with technological advancements comes new and innovative ways for individuals to side-step control procedures and slip the inadvertent expense through the system.

This webinar will discuss the impact of T&E abuse on various risk areas. Among other discussions, the course will also highlight areas of T&E abuse that often go unnoticed and result in expenditure fraud.

Areas Covered in the Webinar:

• Why internal controls over T&E expenditures are a critical component of the control environment.
• The impact abuse of T&E can have on various risk areas.
• Areas of T&E abuse that often go unnoticed and can result in expenditure fraud.
• Identifying T&E red flags for fraud with data analytics.
• The role of technology in the advancement of control gaps.
• How to talk to management about identified findings.

Who Will Benefit:

• CEOs/CFOs
• Board Members
• Internal Auditors
• Compliance Professionals
• Operational Professionals
• Audit and Risk Professionals
• Finance Professionals
• Legal Department

Instructor Profile:

Lynn Fountain, CGMA, CRMA, MBA, has over 30 years of experience in the business profession, which includes public and industry accounting and over 20 years within internal and external auditing combined. She has held CAE roles in two international companies where she has developed strategic risk based audit processes facilitated strong relationships with management and the audit committee. She served as a member of the strategic leadership team in the sale of her utility employer.

Ms. Fountain is a subject matter expert and specializes in internal audit, Sarbanes-Oxley, enterprise risk management, fraud, governance, compliance and COSO. She has successfully developed leading edge training around the implementation and operationalization of the framework. Ms. Fountain has been instrumental in the establishment of ERM, Sarbanes-Oxley and governance frameworks. Along with the development and delivery of leading edge training and consulting both nationally and internationally, she has executed two high successfully e-workshops for the Institute of Internal Auditors, on fraud and on ethics. Both workshops have incorporated aspects of COSO 2013.

In the spring of 2015, the IIA Research Foundation will publish a book authored by Ms. Fountain titled “Raise the Red Flag – The Internal Auditors Guide towards Fraud Evaluations”. The tool is expected to be a method for internal auditors to establish their footprint as skilled professionals in the field of fraud evaluations for their company’s. She is also currently authoring a publication titled “The Realities of Performing the CAE Role” as part of a series of books for internal auditors. She has also performed as an adjunct instructor for the School of Business for Grantham University and the School of Business at the University of Kansas.

Topic Background:

Although travel and entertainment expenses are often a small component of overall corporate expenditures, they are one of the highest inherent risk areas for inappropriate costs and fraud. Expenditures are a businessman's best friend but can be management or an auditor’s worst nightmare if not properly handled. This process area inherently provides prime opportunity for unauthorized or inappropriate and lavish expenditures by executives and personnel. When this occurs, there is more than just dollars at stake for the company. Uncontrolled and mismanaged travel and entertainment expenditures can impact reputation, operations and compliance areas.

Regulators and many legislation suggest annual review of executive expenditures. However this can be a risk laden area for compliance professionals to review due to the internal political ramifications. In today's world of transparency and increasing frauds, management must learn that attention, monitoring, and periodic review of travel and entertainment expenses are important components of maintaining proper internal controls.

Many companies have regular evaluation of executive expenditures for appropriateness. Yet, when something is identified, the evaluator may run into résistance in reporting the observations. In addition, with the proliferation of on-line expense reporting and authorization, new methods have surfaced that allow inappropriate expenses to be charged through and go unnoticed. Management must pro-actively enforce internal controls over their T&E process.

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