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ERM, FRAUD AND AUDIT

21st and 22nd July 2009

Is it time to train the auditors ? A CSI CPE


recognized
program

Audit Strategies for Corporate fraud costs businesses hundreds of millions of dollars
Detecting Corporate each year. It affects livelihoods and is a common cause of
Fraud corporate failure. It is the responsibility of the board of directors to
● Using personal profiling to detect prevent fraud by putting in places the appropriate controls and
computer fraud review procedures. This program shows you why Accounting
Information System (AIS) Threats are ever increasing.
Control risks have also increased in the last few y years because
Wh
Where fraud
f d can occur there are computers and servers everywhere, and information is
● Identifying threats, types of available to an unprecedented number of workers.
fraud. Distributed computer networks make data available to many users,
and these networks are harder to control than centralized
mainframe systems. With the introduction of 3 levels of COSO and
Skill sets for detecting AIS
value driven ERM, things should be under control. Recent events at
threats (Financial SATYAM proves that in reality things are getting out of control. So,
Statement Fraud) what went wrong ? Is it time to train the auditors ?

Fundamentals of Data Theft


● Surveillance The many GOOD reasons to attend this workshop
● SATYAM
High Profile Fraud ● National Kidney Foundation
● How can it happen? ● Enron
● WorldCom
Digital Evidence to deter ● Lehman Brothers
Fraud ● Adelphi
● An introduction to the Digital
Forensic Concepts ● Transmile
● Sanlu (Tainted Milk Company)

Tommy is someone that you would like to meet and to know. Straight talking, sincere,
ki d helpful
kind, h l f l andd without
ith t pretences,
t he
h is
i truly
t l a man off strong
t conviction
i ti andd blessed
bl d
with many practical talents. First and foremost, he is a World Class hands-on accountant
He has worked as an Accountant for some of the largest companies in the world. He is a
tried and tested accountant with a very firm grip on financial products. Because of his
grip on the subject matter, his services in providing technical training is much sought
after by numerous banks in the region, including Germany, Singapore, Malaysia, China,
Indonesia, Philippines and Taiwan. Tommy's other professional achievements would
have been the objects of envy for many of his peers. Some of the better known fact is
that he is the only Singaporean that sits on the ACFE Board of Regents in TexasTexas, USA
USA.
In the year 2006, his strategic management skills were put to the test and his
contribution was duly acknowledged when he was elected the ACFE Board of Regents,
Vice-Chairman. Based in Austin, Texas, ACFE is the best recognised and largest Fraud
Examination Body in the world. While in Singapore, he also help founded the CSI World
Headquarters, a Digital Forensics Certification body. To this day, he is the Chairperson
Tommy Seah, Certified Fraud Examiner Emeritus for the CSI World Headquarters. His previous work experience includes
World Class Financial Management
systems based auditing in an American International Bank, where he was the Senior
Expert
Double Firsts in Financial Management Regional Auditor responsible for the Bank
Bank'ss audit in the Asia Pacific region.
region He has also
and Accountancy (U.K.) held the top executive position of Chief of Internal Audit in a prime offshore bank where
Chartered Banker, International his audit duties cover the Singapore and Hong Kong operations of the bank. He covers
Accountant, FCPA (USA), CSOXP
all areas of the bank's audit of operations and IT systems. He also has hands-on
Member of Advisory Board to SOX
Institute (N.Y.) practical consulting work experience in many different global AAA financial institutions.

Copyright © 2008 CFE-In-Practice


ERM, FRAUD AND AUDIT
21st and 22nd July 2009

Is it time to train the auditors ?

Principal Trainer

Stanley Chia
Certified Fraud Examiner (CFE) with the Association of Certified Fraud Examiners (ACFE) – www.acfe.com
www acfe com
Certified Member (CAMS) with Association of Certified Anti-Money Laundering Specialists (ACAMS) –
www.acams.org
Certified System Investigator (CSI) with the CSI World Headquarters – www.csi-worldhq.org
Member of Australasian Compliance Institute (ACI) – www.compliance.org.au
Member of GRC Group New York – www.grcg.com

Stanley is both the Director & Principal Consultant of CFE Strategic Alliances, the training arm of CFE-In-
Practice group of companies and also the Managing Director of CFE International Consulting Group Pte
Ltd, a think-tank company that provides multi-consultancy solutions to companies world-wide. He
specializes in fraud investigation, investigative interviewing & profiling techniques and has handled
numerous cases for both local and foreign financial institutions.
Stanley is also the current Honorary Vice Chairperson of CSI World Headquarters, an international
accreditation body for Digital Forensic. Stanley has worked for large financial institutions like AIA
Insurance,, Singapore
g p Exchangeg and United Overseas Bank where he was involved in anti-money y
laundering, compliance, enforcement and fraud investigation work. To date, he has investigated more
than 100 fraud and compliance-related cases and some of them involved over US$1M.

He is well versed in financial products knowledge, fraud examination techniques and compliance
methodologies. Stanley is often invited to speak at conferences and seminars in Singapore, Malaysia,
Hong Kong and Shanghai where he taught fraud investigation, investigative interviewing techniques
profiling techniques and internal control. He has also co-authored a series of pocket-sized guide books
f auditors
for dit published
bli h d b
by CSI World
W ld HHeadquarters.
d t H
He iis currently
tl writing
iti a b
bookk on IInterviewing
t i i &
profiling techniques – ISBN 978-981-08-0599-9.

He also holds a Master of Commerce, specializing in Business Law from The University of New South
Wales. He obtained his Bachelor of Economics, majoring in Money & Banking and Accounting in 2001
from The University of Western Australia.

Copyright © 2008 CFE-In-Practice


Day One (21st July 2009)
Prevention Is Better Than Cure ERM, Fraud and Audit

Day One
AS TODAY'S COMPANIES PLAN THEIR RISK
management strategies, the massive
09:00 Understanding Fraud Detection
bankruptcies and colossal shareholder losses of
• Principles of fraud
• Costs to the organization the last two years are undoubtedly on the minds
• Ethical considerations of corporate stakeholders. Numerous risk-
• Audit’s fraud responsibilities related issues have surfaced as a result of the
• Skills successful fraud auditors need scandals at companies such as Enron and
WorldCom, leaving many shareholders,
10:00 Audit Strategies for Detecting Fraud
executives,
ti and
d b
boards
d wondering
d i what
h t
• How to incorporate fraud detection into
your audit program? exposures their own organizations may face.
• Specific audit steps designed to detect The current risk environment can best be
fraud characterized by the oft-repeated dictum, "There
• Using ERM to identify fraud indicators are knowns, known unknowns, and unknown
unknowns."
Morning Coffee Break
Within this climate of ever
ever-increasing
increasing corporate
10 30
10.30
Where Fraud Can Occur in Your uncertainty, enterprise risk management (ERM)
11:00 Organization has emerged as a new paradigm for managing
• Traits of those who commit fraud risk. Instead of relying on a traditional, intra-
• Types of frauds: embezzlement, bribery,
departmental strategy, where each area of the
corruption, and fraudulent disbursements
organization manages its own risks, ERM adopts
Conducting Interviews within the a broader perspective that integrates and
12:00 Fraud Audit coordinates risk management across the entire
• Using Kinetics to spot deception: organization. This enterprise wide approach is
interpreting body language ultimately intended to enhance and protect
• Interviewing dos and don’ts
stakeholder value. ERM, however, does more
•Who should conduct the interview?
than just integrate risk management. According
Networking Lunch to Enterprise Risk Management Framework, a
12 45
12:45 new study being developed by The Committee of
Recap on morning session
14:00 Sponsoring Organizations of the Treadway
Conducting the Internal Investigation Commission, ERM is a process also designed to
14:15 • Gathering the right evidence for your case
"identify potential events that may affect the
• Avoiding some of the legal pitfalls
entity, and manage risk to be within its risk
Afternoon Coffee Break appetite, to provide reasonable assurance
15:00 regarding
di th achievement
the hi t off entity
tit objectives."
bj ti "
Writing the Fraud Audit Report so It
15:30 Gets Read Paralleling the rise of ERM, internal auditing has
• Report content also experienced a paradigm shift in recent
• Ensuring the audit process leads to the years. Guided largely by The IIA's revised
audit report definition of the profession, internal auditing
• Areas to consider when writing the fraud has moved from a control-based approach to
findingg one that focuses on risk management,
management corporate
General Discussion & Question Session governance, and adding value. "Please note that the
16:00 teaching methodology is participative lectures and as
Day One Close
such inter-active in nature that will involves participation
17:00
from attendees. So, notwithstanding the proposed outline,
the program may not necessarily be conducted in exactly
the same sequence or duration for each topic".
Day Two ( 22nd July 2009)
Diagnosis of your organization's ERM
ERM, Fraud & Internal Audit

Day Two
09:00 Recap on Day 1 The U.S. Chamber of Commerce reports that $50 billion
dollarss aree lost
do os annually
u y due to
o eemployee
p oyee theft
e andd fraud.
ud.
09:30 Using ERM to determine Fraud-Related
Also reported by The U.S. Chamber of Commerce - that
Internal Controls 20% of all businesses fail due to internal theft and fraud.
• Building controls around the fraud scheme
• Fraud prevention controls in the According to an Ernst & Young Report, "White Collar
expenditure cycle Crime: Loss Prevention Through Internal Control" a rule
• Selling the controls to management of thumb says that a company loses 1% to 2% of its sales
to crime -- most committed byy or in collusion with
• Fraud prevention theory
10:30 employees.
Morning Coffee Break
11:00 According to K.C. Bettencourt undercover investigator
ERM’s role in Financial Statement Fraud and author of "Theft & Drugs in the Workplace", One in
• Typical fraud schemes three employees steal and it's rising 5% a year.
Additionally, his studies showed that 20-25% of the work
• Balance and Income Statements
force will cheat when the stakes are high and supervision
• Using analytical review/ratio analysis to is low. Furthermore, about 10% will cheat no matter what.
id if fraud
identify f d indicators
i di
The Wall Street Journal reported that up to 75% of all
11:55 What really is ERM employees steal at least once - half of these, at lease twice.
In employee surveys conducted by academics and other
The CAE'S Role as ERM Champion
specialists, as many as 43% of workers interviewed
Networking Lunch admitted stealing from their employers.
12:30
FBI reports that employee theft is the fasting growing
14:00 Recap of Day 2 morning crime in the U.S.

High Profile Frauds


• What went wrong? WHY YOU SHOULD ATTEND?
• Why auditors failed to detect the fraud? The course is a unique opportunity for those
learn improved methods associated with fraud
How Internal Audit can leverage on ERM detection. It also showcases an interactive
14:10
resources approach towards the needs and issues
O
Ownership
hi off th
the ERM process pertaining to Fraud Management
Management. This workshop
15:15 also enables you to enhance your capability in
Afternoon Tea Break addressing specific issues in a demanding higher
15:30
Internal Audit partners ERM in providing transparency and degree of corporate
solution in Strengthening Corporate governance.
Governance
WHO SHOULD ATTEND?
ERM - Is it worth the effort ● Fraud Investigators/Anti-Fraud Managers
● Legal & Compliance Managers
Core internal auditing roles in regard to
● Risk Management & Audit Managers
ERM.
● Internal Auditors
Legitimate internal auditing roles with ● Financial Controllers
safeguards. ● Company Secretaries
● CIO’s, CEO’s, COO’s
D 2 Cl
Day Close ● E-Banking, MIS Managers
17:00 ● Procurement Managers
● IT Auditors
REGISTRATION FORM & SALES CONTRACT ERM, Fraud & Internal Audit
Important Notice
Registration & Payment Payments are required with registration and must be received
2 Easy Ways to Register pprior
o too thee Program
og to
o gu
guarantee
ee you
your pplace.
ce. Walk-in
W
delegates will only be admitted on the basis of space
availability at the Program and with immediate full payment.
You can return the Registration Form either via e-mail or
by fax.
Cancellations & Transfers
Email to: tommy@cfe-in-practice.com
If you are unable to attend, a substitute delegate is welcome at
Fax: (65) 6288 0181 no extra charge.
g Please provide
p the name and the title of the
substitute delegate at least 2 days prior to the program. A
For enquires, please contact:
refund less 10% administrative charge will be made
tommy@cfe-in-practice.com cancellation received in writing 10 working days before the
program date. A complete set of program documentation and
Tel: (65) 9106 9872 a 50% refund will be given for cancellation made 3 working
days before program date. Regrettably, no refund can be
In order to secure a place for the program, delegates are made for cancellation made on and or after program. A
kindly requested to register at least 4 weeks prior to complete set of documentation will however be sent to you.
program commencement.
The organizer reserves the right to make any amendments
Registration is only effected upon receipt of good funds and/or changes to the programme, venue, speaker
via T/T. Regretfully, telephone bookings cannot and will replacements and/or topics if warranted by circumstances
not be entertained or accepted. beyond its control.

Course Fees REGISTRATION FORM


Closing Date: 20 June 2009
Closing Date: 20 June 2009
You can return the registration form either via e-mail or by fax.
Course Fees: US$1669/- early bird before 20th May Mail to: tommy@cfe-in-practice.com
Tel. (65) 91069872
Discounts are available for group bookings. Fax: (65) 62880181
Fees: US$2,269.00 per participant,
Registration after 20th May, pays US$2269/- per pax 2nd participant* pays 75%, subsequent participant* pays 50%
only.
l
Please call CFE-In-Practice Hotline for further details *Must be from the same bank attending the same program.
Telephone : 65 6222 9861 or 65 6222 9860 Name:
(Please note that accommodation and air-fare is not
Dr/Mr/Mrs/Ms
included in the course fees.)

All T/T payment must be remitted:


Designation in the bank:
DBS Bank, Shenton Way, Singapore
Contact Phone No.:
Current A/c No. 022-900202-8
Fax No.:
Account Name: CFE-IN-PRACTICE
Bank’s Email:
VENUE : It will be in Bangkok, Thailand
Bank'ss Name:
Bank
All of our courses are held in 4 – 5 star hotels, chosen
for their location, facilities and level of service. You can
Bank Address:
be assured of a comfortable, convenient learning
environment throughout the duration of the course.
Due to the variation in delegate numbers, we will send
confirmation of the venue to you approximately 2
Signature of Participant:
weeks before the start of the course.