Ethics: Case Studies

1. Ethics: Case Studies • Dallas-Fort Worth Chapter IMA • 19 December 2013

2. IMA ETHICAL PRINCIPLES • HONESTY • FAIRNESS • OBJECTIVITY • RESPONSIBILITY

3. IMA ETHICAL STANDARDS • COMPETENCE • CONFIDENTIALITY • INTEGRITY • CREDIBILITY

4. TODAY’S TOPICS • EXAMINE THE CASES OF FCPA VIOLATIONS, TRUSTING ASSISTANTS, AND BID-RIGGING • DISCUSS IMA STANDARDS AND APPLICABILITY • OTHER CASES AND POINTS OF COMPARISON • SOURCE OF SPECIFIC CASES IS THE ASSOCIATION OF CERTIFIED FRAUD EXAMINERS’ CASE STUDY FILE (www.fraud-magazine.com)

5. FCPA VIOLATIONS • GROWTH OF THE CHINESE ECONOMY • GDP PER CAPITA • TRANSPARENCY INTERNATIONAL’S ANNUAL CORRUPTION INDEX

6. FCPA VIOLATIONS • “PRODUCT INSPECTION” TOURS BY SOE REPS • BRIBERY TO DO BUSINESS OR TO GET BUSINESS • EXPERIENCES OF LUCENT AND SIEMENS

7. FCPA VIOLATIONSDISCUSSION • IMA PRINCIPLES APPLICATION • IMA STANDARDS APPLICATION: • COMPETENCE • CONFIDENTIALITY • INTEGRITY • CREDIBILITY

8. TRUST IN BUSINESS • IMA PRINCIPLES = TRUST • TRUST = CONFIDENCE • VALUE IN QUANTIFYING TRUST IN BUSINESS

9. TRUSTINGASSISTANTS • ACCESS TO CREDIT CARDS, PETTY CASH • INITIATE INTERNAL AND EXTERNAL PAYMENTS • CREATE OPEN PURCHASE ORDERS • APPROVAL OF OWN TIMECARD

10. EMBEZZLEMENTDISCUSSION • IMA PRINCIPLES APPLICATION • IMA STANDARDS APPLICATION: • COMPETENCE • CONFIDENTIALITY • INTEGRITY • CREDIBILITY

11. BID-RIGGING AND KICKBACKS • MUNICIPAL PROJECT MANAGER • FOUR MAJOR BRIDGE REHAB PROJECTS • FOUR SMALL CONSTRUCTION PROJECTS • KICKBACKS FROM 4 CONTRACTORS • BRIBERY, EXTORTION, AND BID-RIGGING

12. CONSTRUCTION FRAUDDISCUSSION • IMA PRINCIPLES APPLICATION • IMA STANDARDS APPLICATION: • COMPETENCE • CONFIDENTIALITY • INTEGRITY • CREDIBILITY

13. CONCLUSION • IMA STANDARDS ARE APPLICABLE ACROSS A BROAD SPECTRUM • TRUST IS NECESSARY, SO CULTURE AND PROCEDURES ARE ESSENTIAL

14. QUESTIONS? • RON FORY CMA CFE CPA • UNIVERSITY OF NORTH TEXAS AT DALLAS • 7400 UNIVERSITY HILLS BLVD, DALLAS TX • 972 338 1804 OFFICE • 817 312 3059 CELL • RONALD.FORY@UNT.EDU