corruption and occupational fraud 34 th annual crime stoppers international conference sep 30 –...
TRANSCRIPT
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C o rru p tio n a n d O ccu p a tio n a l F ra u d
34th Annual Crime Stoppers International Conference
Sep 30 – Oct 2, 2013
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©2012 Association of Certified Fraud Examiners, Inc. 2
ACFE Occupational Fraud Report 2012
- Association of Certified Fraud Examiners (ACFE) “Report to the Nations 2012”
- 1,388 cases of occupational fraud between Jan 2010 and Dec 2011
- Covers 94 nations
- Occupational fraud: The use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets
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©2012 Association of Certified Fraud Examiners, Inc. 3
Survey participants estimated that the typical organization loses an estimated 5% of its annual revenues to occupational fraud.
The Cost of Occupational Fraud
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Types of Occupational Fraud
Asset m
isappro
priation
Corruption sc
hemes
Financia
l statement
0%10%20%30%40%50%60%70%80%90%
100%
Frequency
Frequency
Asset m
isappro
priation
Corruption sc
hemes
Financia
l statement
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Median loss
Median loss
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©2012 Association of Certified Fraud Examiners, Inc. 5
Detection of Fraud Schemes
Initial Detection of Occupational Frauds
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©2012 Association of Certified Fraud Examiners, Inc. 6
Detection of Fraud Schemes
Source of Tips
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©2012 Association of Certified Fraud Examiners, Inc. 7
Victim Organizations
Primary Internal Control Weakness Observed by CFEs
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Whistle Blowing
“The audit committee should review arrangements by which staff of the company may, in confidence, raise concerns about possible improprieties in matters of financial reporting or other matters. The audit committee’s objective should be to ensure that arrangements are in place for the proportionate and independent investigation of such matters and for appropriate follow-up action”.
- UK Combined Code on Corporate Governance
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Crime Stoppers Integrity Line
Anonymous and confidential service for employees to report criminal activities and acts of wrongdoing in workplace
May report bribery, fraud, corruption, money laundering, embezzlement of funds, sexual harassment, theft of company equipment and materials, use of company equipment for personal gain
1-800-CORRUPT (267-7878)
Calls answered by Integrity Line staff at UK call centre
Info sent to Chairman of Crime Stoppers Barbados and designated person at company and/or police
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Prevention of Corruption Act
Prevention of Corruption Commission
Annual declaration of assets, income and liabilities
Declaration by political parties
Code of conduct for public officials
Corruption in the private sector
Solicitation, bribery and other offences
Seizure, freezing and confiscation
Protection of witnesses
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C o rru p tio n a n d O ccu p a tio n a l F ra u d
THANK YOU