An issue that is becoming more critical to companies relates to the need for real-time fraud risk assessments. But what does that really mean?
Most are comfortable and aware of the term risk assessment. A fraud risk assessment is aimed at proactively addressing a business’s vulnerabilities to internal and external fraud. This includes:
Types of fraud vary by business line
Internal frauds include embezzlement and misappropriation of assets,
External frauds include hacking and theft of proprietary information
But the concept of a risk assessment typically implies a process that is conducted on a periodic basis.
Studies have shown the system has reduced fraud losses in the U.S. by 70% since 1992, when real-time fraud detection was introduced.
This course compliments the course on Fraud Trends for the Future – Need For a Real-time Fraud Risk assessment Part 1 and delves further into the elements that comprise a real-time fraud risk assessment or detection process.
Who Should Attend
Executives; Board; Management; Internal and External Auditors; Accountants; Compliance and Legal professionals
Topics Covered
- How Real-time fraud detection varies from your periodic fraud risk assessment
- It is the real-time execution of fraud-detection algorithms to detect fraudulent activities in real time (on credit cards and other financial payment systems as well as operational activities)
- Making use of real-time data analysis such as forensic analytics and predictive analytics to determine if an ongoing transaction is legitimate or not
Learning Objectives
- Review concepts identified in Part 1 of this series
- Discover and define a typical fraud risk assessment
- Discover a real-time fraud risk assessment
- Explore and review step one and two in creating a real-time fraud risk assessment
- Explore and examine how to quantify, assess and prioritize risks in a real-time fraud risk assessment utilizing technology
- Identify several streaming platforms currently available
- Discover and discuss the process of analyze, prioritize and process information from a real-time risk assessment
- Explore and examine communication and reporting concepts
Level
Overview
Instructional Method
Group: Internet-based
NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)
Program Prerequisites
None
Advance Preparation
None
Instructor
Lynn Fountain
Lynn Fountain has over 38 years of experience spanning public accounting, corporate accounting and consulting. 20 years of her experience has been working in the areas of internal and external auditing and risk management. She is a subject matter expert in multiple fields including internal audit, ethics, fraud evaluations, Sarbanes-Oxley, enterprise risk management, governance, financial management and compliance. Lynn has held two Chief Audit Executive (CAE) positions for international companies. In one of her roles as CAE, she assisted in the investigation of a multi-million-dollar fraud scheme perpetrated by a vendor that spanned 7 years and implicated 20 employees. The fraud was formally investigation by the FBI and resulted in 5 indictments estimating a $13M fraud loss.
Ms. Fountain is currently engaged in her own consulting and training practice. She is a highly sought-after trainer and international speaker. In addition, Ms. Fountain has assisted numerous companies with enterprise risk management frameworks, internal audit processes and financial accounting. She also serves as a discussion leader for the AICPA for numerous classes finance, accounting and risk management topics.
Ms. Fountain is the author of three separate technical books. Her first book released in 2015 by the Institute of Internal Auditors Foundation is entitled “Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations”. Her second book “Leading the Internal Audit Function” was released in October 2015 by Taylor & Francis Publications. This book serves as the initial launch for a series of leading practice internal audit and information technology publications. Her third book “Ethics and the Internal Auditor’s Dilemma” was released in December 2016.
Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has her CPA, CGMA, CRMA credentials.