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Building a Fraud Practice for Tomorrow
Jeffrey N. Aucoin, CFE, CPA, CFF, CIA
Senior Manager
June 13, 2011
Introduction
• Fraud is…everywhere.
• We must respond by…
• Planning for the future.
• Setting goals.
• Working hard.
Objectives
• Goals for any fraud practice
• Assessing your fraud practice
• Areas of focus
• Conclusion
Goals
• Quality (People and Resources)
• Growth (Clients and Referrals)
• Profitability
Assessment Process
Simple three step process:
1. Assess where your practice is today.
2. Assess where you want your practice to be at some
point in the future.
3. Develop the “road map” to get to the future.
Defining the Areas of Focus
• Internal
• People
• Resources
• External
• Clients
• Referral Sources
• Profitability
Step 1: Today
• Internal
• People
• Resources
• External
• Clients
• Referral Sources
• Profitability
Step 2: Tomorrow
• Internal
• People
• Resources
• External
• Clients
• Referral Sources
• Profitability
Step 3: Path
• Internal
• People
• Resources
• External
• Clients
• Referral Sources
• Profitability
Internal: People
Internal: People
• Recruiting
• Training
• Staff Development
Recruiting
• How many people do you need at each level and what
experience and skills should they have?
• Where will these individuals come from?
• Promotion within your department
• Transfer from another department within your
company
• Hire a graduate from a local university
• Seek an experienced candidate
Recruiting (continued)
• Experience
• Skills
• Self management
• Problem solving
• Critical thinking
• Researching
• Writing
• Etc.
Training: Internal
• Presenters
• Internal leaders
• Staff members
• External professionals
• Possible Formats
• Monthly or quarterly lunch topics
• Annual strategic planning meetings
• Staff-level training programs
Training: External
• Professional organizations
• Annual conferences
• Webinars
• Specific training courses
• Other options may include
• Testimony boot camp
• Team building exercises
• Presentation skill
• Writing skills
Staff Development
• Strategic planning meeting/retreat
• Mentoring/coaching programs
• Evaluations
• Annual goal setting
• Annual evaluations
• Engagement evaluations
Internal: Resources
Internal: Resources
• Processes
• Templates
• Technology
Processes
• Conflict checks
• Client and engagement acceptance
• Staff and project scheduling
• Document management
• Interviewing individuals
• Work-product quality
Templates
• Engagement letter
• Project budget
• Document request
• Deposition questions
• Work program
• Report and schedules
Technology
• Data analysis software:
• ACL: www.acl.com
• IDEA: www.auditsoft.com.au
• MS Excel and Access www.office.microsoft.com
• Picalo: www.picalo.org (Free)
• Conversion software
• Cogniview: www.cogniview.com
• Monarch:
www.datawatch.com/products/monarch_overview.php
• Able2Extract:
http://www.investintech.com/able2extract.html
Technology (continued)
• Timeline/Visualization
• LexisNexis Tools: http://www.lexisnexis.com/casemap
• MS Visio: www.office.microsoft.com
• Smart Draw:
www.smartdraw.com/specials/timelines.asp
• Timelinemaker: www.timelinemaker.com
• Research tools
• Library: local neighborhood
• PACER: www.pacer.gov
• Public sites, newsletters: [email protected]
External: Client Services
External: Client Services
• Prevention
• Detection/Monitoring
• Investigation
Prevention Services
• Internal control enhancements/recommendations
• Internal control evaluation
• Policy and procedure development
• Anti-fraud program development or evaluation
• Anti-fraud training
Detection/Monitoring Services
• Executive or board member expense account audit
• Employee expense account audit
• FCPA compliance audit
• Large contract compliance audit (customer or vendor
contracts)
• Continuous monitoring program development and/or
exception report development program
• Large vendor audits
• Payroll audits
Investigation Services
• Criminal cases versus civil cases versus other (no
lawsuit involved)
• Employee embezzlement cases
• Security fraud cases
• Insurance fraud cases
• Bankruptcy cases
• Healthcare fraud cases
External: Referral Sources
External: Referral Sources
• Current Relationships
• New Relationships
• Attorneys
• Law Enforcement
• Businesses
• Other
Current Relationships
Don’t be out of sight, out of mind.
New Relationships
• Attorneys—consider the following places:
• Local Bar conferences/meetings
• PACER via lawsuits files
• Law firm websites
• Firm mixers
• Law enforcement or government agency—consider the
following places:
• Local ACFE or other professional organization meetings
• Conferences/Trainings (probably one of the presenters)
• Past or active investigations
New Relationships (continued)
• Business Owners / Executives / General Counsel—
consider the following:
• Professional conferences/meetings/trainings
• Industry conferences/meetings/trainings
• Company websites
• Non-profit gathering
Other Avenues
• Marketing materials
• Website
• Presentations
• Industry and professional organizations
• Advertising
Profitability
Profitability
• Leveraging
• Fee Structure
• Costs
Conclusion
• Perform an assessment
• Set goals
• Measure successes