The Securities and Exchange Commission has taken action against several fraudsters over the past few days, including charges against a group of movie executives for making false claims about the construction of a movie studio and a man who is charged with registering several "blank check" companies.
Those cases come on the heels of the massive Wells Fargo scandal, where 5,300 employees were fired for opening nearly 2 million phony accounts. While it's still unclear what role internal audit played in that failure of oversight and internal control, the case has certainly raised concerns at many companies about how to detect fraud and wrongdoing and keep it from expanding throughout the company.
Internal audit plays an important part in guarding against fraud by assuring that the proper controls are in place to defend against it and that they are working effectively. Fraud auditors pay specific attention to rooting out fraud and fixing lapses in internal controls that allow it to happen.
During an upcoming training week, taking place in New York from October 17 to 21, instructor Leonard Vona will help auditors tone up their fraud-fighting abilities. In this three-day seminar, attendees will learn how to integrate fraud detection into an audit program and identify key red flags of fraud scenarios. The course, called Fraud Testing: Integrating Fraud Detection into Your Audit Program, will focus on preparing fraud risk assessments for core business systems and building fraud audit procedures. It will cover the methodologies used by fraud auditors and focus on the red flags that signal the need for an investigation. Attendees will learn how to implement and develop audit procedures that will increase the likelihood of discovering fraud, including fraud data mining.