INTRODUCTION
Many companies and organisations suffer from some form of fraud, though they may not know it. Fraud is a growing problem, despite attempts to control it, and it is depriving entities of their valuable resources. There are a myriad of ways in which fraud can be perpetrated in a company or organisation.

There are opinions that an internal control system can prevent the occurrences of fraud.  Fraudsters are becoming more sophisticated and many controls put in place seem to be circumvented.  This seminar will challenge your knowledge on internal controls and how fraudsters manoeuvre their way through the internal control minefield.

This 2 day facilitator led course will show you real life examples of how fraud has been carried out by staff, management and other internal staff alone or in collusion with other staff or suppliers, service providers etc and which had gone undetected despite traditional internal controls being in place.

LEARNING OUTCOMES
Discover what you can do to better protect your company or organisation against fraud.
Build a good foundation in your knowledge of fraud prevention and detection.
Acquire knowledge; skills and techniques you need to prevent, detect and deter fraud in your company or organisation.

WHO SHOULD ATTEND?

• CEOs, CFOs and COOs
• Executive and Non-executive Directors
• Senior Managers and Managers
• Managers and staff of involved in Internal Audit, Credit Control, Risk Management and Corporate Governance

COURSE CONTENT

DAY 1
- Understanding the Elements of Fraud Risks and Carrying out an Evaluation of the Controls Systems in force

- Introduction to Fraud

• An explanation of what Fraud is.
• Who can commit fraud
• How fraud surfaces

- Case Study 1 – Understanding how Fraud is perpetrated and what constitutes lack of Internal Controls.

- Case Study 2 (Interactive) - Evaluating the fraud risks in a simple case study

- Fraud indicators

• The principal fraud indicators to look out for
• How to identify danger signals that are apparent in a  system
• How to identify the areas in your company or organisation which are vulnerable to fraud

- Evaluating current arrangements

• Are internal controls in place which can prevent fraud?
• Are internal controls alone sufficient?
• Thinking like a fraudster
• What usual internal controls are in place to mitigate the risks identified in the 2 case studies

- Establishing a fraud control environment

• Establishing and implementing effective internal controls
• Why internal controls cannot always prevent fraud
• Development of a fraud awareness training programme for management and staff
• The need for a strong will and action when there is a suspicion of fraud or when fraud is discovered.
• Proactive prevention vs detection and punishment
• Fraud, risk and control – the inter-relationship
• The roles and responsibilities of the Management and other responsible persons entrusted to safeguard the assets of the company or other organisations.

- Case Study 3 – How effective Internal Controls play am important role in Fraud Detection

- Fraud – its Prevention and Detection, the Cost Benefit Analysis

• Company standard operating policies and what are consequences if a person is found to be involved in fraud
• Whistle blowing – are they encouraged and are there adequate protection and confidentiality in the company or organisation?
• Anonymous letters
• Information through the organizational grapevine
• Use of specialists to assist in the detection and investigation
• Fraud contingency plans
• Is implementing any of the above cost effective? How do we find out?

DAY 2
- Fraud detection and investigation

- Fraud Challenges in Purchasing, Contracting, Consulting, and Marketing

• Understanding exposures in purchasing
• Exploring fraud in construction and contracting
• Understanding fraud in marketing

- Exploring Fraudulent Financial Reporting

• Case examples of "cooking the books"
• Why auditors cannot always detect fraudulent financial reporting

- Fraud detection

• Fraud profiling - how to determining the right system for a company or organisation ?
• Prioritizing Fraud Risks
• How to get the information needed to determine Fraud Risks?
• Company Auditors – what are their roles in detecting fraud?
• Red Flags for fraud detection
• A practical discussion on how to apply fraud prevention techniques in a company or organisation.

- An Internal audit function

• A programmes as a watchdog as well as an advance warning alert
• How effective are internal audits
• In-house internal audits vs outsourced internal audits for fraud prevention and detection

- When fraud is suspected what do you do ?

• Case Study 4 – a typical company with internal controls but fraud is suspected – a discussion exercise led by the facilitator

             o Where to start ?
             o What to do next ?
             o Who are the people who should be informed and be involved ?
             o Do they need any special skill sets ?

- What to do next when fraud is confirmed?

• Determining roles of Management, Internal Auditors, External Auditors, Solicitors, Human Resources Department and Finance Department etc.
• How to respond to anonymous letters
• Identifying misleading and malicious allegations
• How to decide if you need the help of forensic accountants
• What information do you need to make a police report

- Managing the investigation

• The need for a proper planning
• Keeping the investigation on low-profile
• What information can lawfully be obtained
• What information is available and can be used
• Simple documentary evidence and how to obtain it
• How to ensure that such documentary evidence are not tampered with after the investigation
• Building a case based on the evidence gained
• To suspend or to dismiss employees suspected of being involved in fraud

- Dealing with the suspected employee

• Setting the scene – the choice of the venue is important
• Planning the interview - do's and don'ts
• How to keep in control
• The use of open questions
• Interpreting body language
• How to recognise when someone is lying
• Recording and evaluating the conversation
• How to avoid accusatory or threatening questions
• The need to think like a fraudster
• Role Play - The interview

- Communicating the results of the interview

• When and how to inform top level management
• What does the top level management do next?
• When to inform the police / regulators (where necessary) etc
• Managing external coverage of news
• Dealing with the media, the shareholders and other interested parties
• Publicising a successful fraud investigation within a company or  organisation as a moral deterrent

FACILITATOR'S PROFILE

J Selvarajah, CA (M) CA (NZ) ATII B.Com (Acc)
J Selvarajah is a partner of the Omar Arif group practice which comprises of Omar Arif & Co (AF0786), Yuen Tang & Co (AF0003), OAC Consulting Sdn Bhd, Arrow Consulting Team Sdn Bhd and Yuen Tang Tax Services Sdn Bhd.
 
He has over 35 years of experience in the areas of risk assessment and management, risk advisory consulting, risk profiling, fraud prevention, internal examination of companies to detect fraud, corporate investigations, accounting malpractices, embezzlement and money laundering.  In addition, he is also the internal auditor for several public listed companies on Bursa Malaysia.

He has assisted many corporate organisations in arresting fraud and misappropriation of funds, which in some cases had run into millions of Ringgits. He has also assisted in the documentation of such fraud and misappropriation of funds for prosecution purposes, using direct, indirect and other simple forensic information available in the various crime scenes.

Participants will be able to get a glimpse of the mind of a potential fraudster by understanding the profile of such persons.  They will also get to understand how generally good control systems have been over-ridden in the quest to commit fraud.  The various examples which will be used based on actual cases will give participants a good understanding of fraud.


DATE, TIME & VENUE

9.00 am – 5.00 pm

29 & 30 July 2010 (Thursday & Friday)
Holiday Inn Glenmarie, 1 Jalan Usahawan U1/8, Seksyen U1, 40250 Shah Alam, Selangor Darul Ehsan

Course Fee: RM 1,500.00 per person

Early Bird and Group Discount
Register and pay up at least 2 weeks before the event and enjoy a discounted fee of RM 1,350.00.

Group of 3 or more participants from the same company will enjoy a 10% discount on the applicable fee.

HRDF: SBL claimable

CPD: 16 Hours

Registration
Contact Person: Miss Pang or Puan Ela
Tel: 03-40423309, 40426309
Fax: 03-40427309
Email: training@arrow-training.com.my or arrow.training@gmail.com