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Learn about potential fraud risk indicators and high-risk areas through a case study on Xerox Corporation, highlighting management involvement in fraud. Identify red flags and employee fraud symptoms.
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Day 2- Session II Potential fraud risk indicators and high risk areas RTI, Nagpur
Session overview • Case study on Xerox corporation highlighting involvement of management in fraud • Employees’ fraud symptoms • Identification of ‘red flags’ RTI, Nagpur
Learning objectives • Participants will learn to identify typical ways by which management try to project falsehoods before unsuspecting stakeholders through a case study • Participants will learn to observe unusual traits in employee behaviour involved in fraud and identify other ‘red flags’ RTI, Nagpur
Typical employee fraud symptoms · Excessive credit memos · General ledger out of balance · Inventory shortage · Behavioural anomalies in employee - absence of leave, absence of vacation, changes in lifestyle, temperament, attitude RTI, Nagpur
Risk indicators of unusual or anomalous trends · Insufficient working capital · Loss of key accounting and other financial personnel · Sole source procurement · Excessive travel cost · Transfer of funds between divisions without substance · Change in external auditors · Excessive consultant costs · Unexplained shortages in physical assets · Presence of many bank accounts RTI, Nagpur
Additional risk indicators • Tips and complaints • Whistleblowers RTI, Nagpur