Tommy Seah speaks on CORRUPTION and FRAUD PREVENTION in Malaysia

Managing Internal Investigation and Corruption

Copyright © 2006 www.cfe-in-practice.com

Slide no. 2

Introduction to

Managing Internal Investigation

• The different approaches of internal audit and forensic audit

• Internal investigation skill set requirements

• How to build the core competencies for

internal investigation,

• Cost of fraud to your organisation,


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ALF Resources

Introduction to Managing Internal Investigation

• The difference of internal fraud and external fraud,• How to sell the investigative audit approach to management• How to apply the investigative methodology• How to avoid liability by understanding the legal issues involve in conducting an internal investigation.


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ALF Resources

An investigation is a systematic process of gathering evidencegathering evidence in order to prove or disprove the validity of a set of allegations.


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ALF Resources

The activity:• is clandestine;• violates the perpetrator’s fiduciary duties to the

victim organization;• is committed for the purpose of direct or indirectdirect or indirect

financial benefit to the perpetrator; and• costs the employing organization assets,

revenue, or reserves.

All fraud schemes in most companies have four key elements in common.


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ALF Resources

The different approaches of internal audit and forensic audit

differs from investigative auditing

Internal audit (COSO + COBIT+ ISO…

( Broad based, 5 cycles)

quite similar to “External” Audit.

Forensic audit (Specific, Post event)

E.g.. NKF in Singapore, St. Johns Home

Investigative auditing

( suspicious, unusual activities, allegations) – Kick Backs

E.g.. Money Laundering penetration Test


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ALF Resources

WhereWhere CharactersCharacters Types of FraudTypes of Fraud

Fraud Can Occur in any Organization

Characters of those who commit fraud

Embezzlement, bribery, corruption, fraudulent disbursements and others

Regardless of the kind of fraud. Awareness means knowing:


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ALF Resources

Principles of Good Administrative and Internal Investigations

Timely Objective In accordance with administrative fairness and due process Systematic, orderly, planned Discrete Confidentiality maintained Sensitive information protected Timely corrective action as a result


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ALF Resources

Core Competencies for Fraud Investigation

Fraud Audit Team Make-upFraud Audit Team Make-up

(Not just forensic accounting)(Not just forensic accounting)


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ALF Resources

CFE-In-Practice

To begin with:To begin with:

Know the distinction between Know the distinction between • Investigative audit (CSI domain) -- Investigative audit (CSI domain) -- CPA, CFE, CIA CPA, CFE, CIA ($$$$)($$$$) • Litigation support - Litigation support - CPA and or CFE, CISA, CSI ($$$)CPA and or CFE, CISA, CSI ($$$) • Forensic accountingForensic accounting - - CPA and or sometimes CFE ($$)CPA and or sometimes CFE ($$)

• Internal AuditInternal Audit - - CPA and or CIA or CISA CPA and or CIA or CISA ($)($)

• “ “External” Audit - External” Audit - CPA ($)CPA ($)

$ - Degree of compensation $ - Degree of compensation

$$ - HIGHER Degree of compensation - HIGHER Degree of compensation

Migration

Path

•Accounting Forensics

•IT Forensics

•Digital Forensics

•Digital Surveillance


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ALF Resources

To prevent means you must be awareAwareness means knowing…

Where Fraud Can Occur in any Organization Where Fraud Can Occur in any Organization (CSI)(CSI)

Characters of those who commit fraud Characters of those who commit fraud (CFE)(CFE)

Types of frauds: Types of frauds: Corruption, Asset Misappropriation, Corruption, Asset Misappropriation, Financial Statement FraudFinancial Statement Fraud (CPA, CIA, CISA)(CPA, CIA, CISA)

Who Did It, How was it done, Where was it committed, Who Did It, How was it done, Where was it committed, When was it done When was it done (CSI) (CSI) www.csiworldconference.com


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ALF Resources

Thank you and Go HomeThank you and Go Home

Contact Information:

Tommy Seah CFE, CSI

Regent Emeritus

ACFE Board of Regents, Texas, USA

www.cfe-in-practice.com

[email protected]

Phone : + (65) 91069872


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ALF Resources

CCertified SSystem IInvestigatorsThe Digital Forensics Certification Body

CERTIFIED SYSTEM INVESTIGATOR


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ALF Resources

ABOUT CSI

This is a professional industrial recognition that This is a professional industrial recognition that CPAs, CFEs, CFAs, etc. seek to be certified. CPAs, CFEs, CFAs, etc. seek to be certified.

The program enhances their ability to :The program enhances their ability to :

• Handle digital/data analysis Handle digital/data analysis • Performing preliminary level of Fraud Performing preliminary level of Fraud investigation using IT Forensic toolsinvestigation using IT Forensic tools• Stay updated with the latest and most up-to-dateStay updated with the latest and most up-to-date knowledge in financial analysis within their knowledge in financial analysis within their organization. organization.


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ALF Resources

WHY BECOME A CSI?

Our objective is to increase the existing Our objective is to increase the existing pool of competent industrial practitioners pool of competent industrial practitioners

who can perform to international standards who can perform to international standards through a series of structured digital through a series of structured digital

forensics training programs.forensics training programs.


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ALF Resources

Special PrivilegesSpecial Privileges

• Certification (CSI)• Free Book autograph by the author, Tommy Seah• Special Discounts for future workshop by ALF Resources, CSI In Practice & ProEdge

Visit : www.csiworldconference.com

REGISTER NOW @ RM$2,500 ONLY

Offer valid till 31st July, 2007

Education

Tommy Seah speaks on CORRUPTION and FRAUD PREVENTION in Malaysia