Top Occupational Fraud Schemes
Date: Friday, November 20, 2026
Instructor: Lynn Fountain
| Begin Time: |
11:00am Pacific Time
12:00pm Mountain Time
1:00pm Central Time
2:00pm Eastern Time |
| CPE Credit: |
2 hours for CPAs |
|
Occupational fraud—fraud committed against an organization by its own employees—remains one of the most damaging threats to financial integrity and organizational trust. Unlike external fraud, these schemes exploit the internal systems, processes, and authority structures of an entity, making them both difficult to detect and costly to remediate
This course provides an in-depth study of the top occupational fraud schemes, drawing on global data, case studies, and best practices in fraud risk management.
The program begins by reviewing the three major categories of occupational fraud defined by the Association of Certified Fraud Examiners (ACFE):
Asset Misappropriation – theft or misuse of an organization’s resources (e.g., cash theft, fraudulent disbursements, payroll schemes, skimming, expense reimbursement fraud, and inventory theft).
Corruption – abuse of influence for personal gain (e.g., bribery, conflicts of interest, bid-rigging, procurement fraud, and kickback schemes).
Financial Statement Fraud – intentional misrepresentation of financial results (e.g., revenue recognition manipulation, understatement of liabilities, improper asset valuation, and disclosure fraud).
The course will also highlight
emerging fraud risks, such as fraud schemes enabled by digital payments, e-procurement platforms, and cyber-enabled occupational misconduct.
Participants will explore the fraud triangle and fraud diamond models, examining how pressure, opportunity, rationalization, and capability intersect to drive fraudulent behavior.
Discussion will emphasize how workplace culture, weak governance, and inadequate oversight contribute to an environment where occupational fraud thrives.
Information will illustrate the progression of fraud schemes from inception to detection, including:
How seemingly minor schemes escalate over time into major financial losses.
The behavioral red flags often exhibited by perpetrators, such as living beyond one’s means, reluctance to share duties, or unusual vendor relationships.
Real-world consequences of fraud, including financial loss, reputational damage, regulatory enforcement, and legal action.
Beyond understanding the schemes themselves, the course emphasizes practical prevention and detection strategies, including:
Designing effective internal controls to reduce opportunity.
Implementing fraud risk assessments and monitoring programs.
Leveraging data analytics and continuous monitoring tools to identify anomalies in payroll, vendor payments, or journal entries.
Establishing whistleblower hotlines and ethics programs as a proactive deterrent.
Strengthening governance through tone-at-the-top and board oversight.
Who Should Attend
This course is ideal for auditors, accountants, compliance professionals, investigators, and organizational leaders responsible for safeguarding resources and ensuring accountability. It equips participants with both conceptual knowledge and practical investigative tools to recognize occupational fraud schemes, respond effectively, and mitigate future risk.
Topics Covered
- Schemes will be examined, with emphasis on how it typically occurs, the internal controls most often bypassed, and the red flags that signal possible fraud. For example:
- Billing schemes that involve shell companies, duplicate invoices, or collusion with vendors
- Payroll fraud including ghost employees, falsified hours, or inflated commission payouts
- Expense reimbursement abuse, such as overstated receipts, fictitious travel, or personal purchases disguised as business expenses
- Corruption schemes in procurement and contracting, including bid suppression, price fixing, and vendor favoritism
- Financial reporting manipulation designed to meet budget targets, influence stock price, or conceal debt obligations
Learning Objectives
- Identify and differentiate the most common and costly occupational fraud schemes
- Recognize red flags and behavioral warning signs associated with fraud perpetrators
- Analyze internal control weaknesses that enable fraud and recommend corrective measures
- Apply forensic and data-analytic techniques to detect fraudulent patterns
- Integrate fraud awareness and prevention strategies into audit plans, compliance programs, and risk management frameworks
Level
Update
Instructional Method
Group: Internet-based
NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)
Program Prerequisites
Basic understanding of financial ratios
Advance Preparation
None
