INCORPORATING CUTTING EDGE FORENSIC ACCOUNTING …

1 9/30/2015. INCORPORATING " CUTTING EDGE". FORENSIC ACCOUNTING TECHNIQUES /. METHODOLOGIES INTO COLLEGE /. UNIVERSITY AUDITING. Presenter : Collin A. A. Greenland Executive Chairman KAIZEN MANAGEMENT CONSULTANTS. Wednesday, 9/30/2015, 1:10:00 PM 2:50:00. 2015 ANNUAL CONFERENCE. Indianapolis To Sensitize / Review the essential aspects of FORENSIC ACCOUNTING , Definition, Nature, etc. To Expose / Review the Need / Demand for FORENSIC ACCOUNTING Generally, and Specifically for University Internal Auditors. To Expose and Explain to Attendees the types of FORENSIC Assignments / Applications, the Main Elements of a FORENSIC Audit, and How it is Conducted.

2 To Introduce CUTTING Edge FORENSIC ACCOUNTING Methodologies, Techniques and Technology into University Internal Auditing. 2015 ANNUAL CONFERENCE. Indianapolis 1. 9/30/2015. WHAT IS FORENSIC ACCOUNTING ? DEFINITION 1. : The application of financial skills and an investigative mentality to unresolved issues, conducted within the context of the rules of evidence. As a discipline, it encompasses financial expertise, fraud knowledge, and a strong knowledge and understanding of business reality and the working of the legal system. (SOURCE : Fraud Auditing and FORENSIC ACCOUNTING : New Tools and Techniques, by Jack Bologna and Robert J.)

3 Lindquist, John Wiley & Sons, New York, 1987. 2015 ANNUAL CONFERENCE. Indianapolis WHAT IS FORENSIC ACCOUNTING (CONTD.)? DEFINITION 2. : FORENSIC ACCOUNTING (or auditing) is the integration of ACCOUNTING , auditing and investigative skills in order to provide an ACCOUNTING analysis suitable for the resolution of disputes (usually but not exclusively) in the courts. ( Demystifying FORENSIC ACCOUNTING , by Collin Greenland, The Weekend Observer, Pg. 5, December 7, 2001). 2015 ANNUAL CONFERENCE. Indianapolis 2. 9/30/2015. WHAT IS FORENSIC ACCOUNTING (CONTD.)

4 ? THE NATURE OF FORENSIC ACOUNTING. FORENSIC accountants are required to be familiar with legal concepts and procedures and must be able to identify substance over form when dealing with an issue. FORENSIC engagements usually require the analysis, interpretation, summarization and presentation of complex financial and business-related issues in a manner which is both understandable and properly supported. 2015 ANNUAL CONFERENCE. Indianapolis WHAT IS FORENSIC ACCOUNTING (CONTD.)? THE NATURE OF FORENSIC ACOUNTING. FORENSIC accountants are required to be familiar with legal concepts and procedures and must be able to identify substance over form when dealing with an issue.

5 FORENSIC engagements usually require the analysis, interpretation, summarization and presentation of complex financial and business-related issues in a manner which is both understandable and properly supported. 2015 ANNUAL CONFERENCE. Indianapolis 3. 9/30/2015. WHAT IS FORENSIC ACCOUNTING (CONTD.)? THE NATURE OF FORENSIC ACOUNTING. According to the American College of FORENSIC Examiners Institute, (ACFEI) a group of their educators have broken FORENSIC ACCOUNTING into 75 topics as Follows (in alphabetical order) : 1. ACCOUNTING systems and the detection of fraud 2.

6 Analytical procedures 3. Analyzing financial statements 4. Antitrust 5. Bankruptcy 6. Billing schemes 7. Bribery and corruption investigation 8. Business interruption 2015 ANNUAL CONFERENCE. Indianapolis WHAT IS FORENSIC ACCOUNTING (CONTD.)? THE NATURE OF FORENSIC ACOUNTING. 9. Business valuations and cost estimates 21. Cyber fraud and computer topics 10. Check tampering 22. Detecting management and employee fraud 11. Civil and criminal fraud statutes and regulations 23. Document collection and analysis 12. Common fraud schemes 24. Elements of fraud, pressure, opportunity, 13.

7 Compliance with applicable laws and and rationalization regulations 25. Environmental and personal red flags 14. Computers and computer fraud 26. Expert witness and expert testimony 15. Concealing fraud in ACCOUNTING techniques 16. Concealment investigative methods 27 Financial statement fraud 17. Conflicts of interest investigative techniques 28. Financial reporting process 18. Conversion investigative methods 29. Finding assets and people 19. Corporate governance 30. FORENSIC ACCOUNTING practices 20. Criminology and white-collar and economic 31. FORENSIC and general ACCOUNTING crimes and general ACCOUNTING 32.

8 Fraud auditing methodology 2015 ANNUAL CONFERENCE. Indianapolis 4. 9/30/2015. WHAT IS FORENSIC ACCOUNTING (CONTD.)? THE NATURE OF FORENSIC ACOUNTING. 33. Fraud perpetrators and their motivations 47. Knowledge of the legal system 34. Fraud prevention and fraud policies 48. Legal elements of fraud 35. Fraud schemes / 36. Fraud statistics 49. Litigation consulting techniques 37. Fraud symptoms and computer-aided fraud 50. Loss prevention investigation auditing techniques 51. Loss prevention programs 38. Fraud symptoms / 39. Fundamentals of fraud 52. Money laundering 40.

9 Hidden assets 53 Occupational fraud 41. Internal control evaluation 54. Off-book ACCOUNTING and financial 42. Interrogation statement fraud 43. Interview principles and methods to evaluate 56. Overview of ethics deception 57. Overview of fraud auditing and fraud 44. Inventory and asset theft investigation 45. Investigation of financial crimes and legal 58. Overview of the legal elements of fraud elements 59. Payroll and expense reimbursement 46. Kiting 60. Phases of FORENSIC ACCOUNTING 2015 ANNUAL CONFERENCE. Indianapolis WHAT IS FORENSIC ACCOUNTING (CONTD.)

10 ? THE NATURE OF FORENSIC ACOUNTING. 61. Principles of ethics and corporate code 68. Techniques in locating hidden assets of conduct 69. The civil justice system 62. Professional liability 70. The criminal justice system 63. Resolution of allegation of misconduct 71. Theft and skimming 64. Rules of evidence 72. Theft act investigative methods 73. Theory of fraud examination and 65. Skills required of the FORENSIC accountant prevention 66. Statistical sampling 74. Trial and cross-examination 67. Tax consequences 75. Who commits fraud 2015 ANNUAL CONFERENCE.