Course Information
Using Data Analysis to Detect Fraud and Error
Parking for SAO, Professional Development courses is in Garage B (1511 San Jacinto Blvd.). The Garage signage may read 1511 San Jacinto or Garage B. The elevator in Garage B is not reliable. If you are unable to walk the stairs, please contact the professionaldevelopment@sao.texas.gov for alternate parking arrangements. Handicapped parking is free at the meters around the downtown area.
A course coordinator will Email you a parking permit prior to the course start date. A permit must be displayed or you will be ticketed.
Course Description
Today's technology, from massive ERP systems to legacy systems spotted around the globe, can hide symptoms of fraud and waste from auditors and control personnel. This tactical one-day session delves into specific methods for auditors, investigators, and finance professionals using data analysis software. This is not a course about which buttons to click. Rather, you will see numerous results demonstrating how data analysis techniques highlight symptoms of frauds across all processes, regardless of the software tool you use. Data analysis techniques, when combined with traditional, manual detection methods, create the most efficient and effective opportunities for cost recoveries, discovery of missing revenues, and detection of fraud, waste, and abuse.
Course Objectives
Upon completion of this course, participants will be able to:
· Employ data analysis techniques to successfully detect fraud for cost recovery.
· Merge data analysis techniques with traditional audit techniques, such as observation and confirmation, resulting in more effective audits.
· Incorporate data analysis techniques into audit programs to detect the symptoms of fraud and error in financial and operational areas.
· Identify symptoms of fraud in data mined results.
· Avoid common pitfalls in data analysis.
· Handle the common objections related to data analysis.
· Apply data analysis to the five-step approach to fraud detection.
· Use data analysis to improve your sampling methodology and test all (or 100%) of the population instead of a sample
Introduction and Understanding Fraud
· Overcoming beliefs that hinder our ability to achieve results
· Building discipline to improve problem detection
· Assessing Fraud Policy
· Understanding who really steals
· Avoiding the five dangers of fraud
· Defining the most damaging types of fraud
· The five-step approach to fraud detection
· Evolving from random samples to targeting indicators of fraud, waste, and abuse
· What can go wrong in your organization
Fundamental Data Analysis Techniques
· Using control totals to detect manipulation of reconciliations and spreadsheets
· Sorting data to highlight key missing fields, stale transactions, odd dates, and unusually large / small items
· Analyzing field statistics to detect unusual balances such as negative entries and posts in the middle of the night
· Summarizing data to detect curious patterns
· Effective use of extractions, and using embedded functions to highlight anomalies such as round sum and non-workday transactions
· Searching for descriptors symptomatic of earnings management & corruption
· Application of fundamental techniques to case studies
Beyond Fundamentals
· Common errors in data analysis
· Effective uses of field manipulation
· Searching for duplicate entries
· Date stratification to detect spikes in activity around a period end, symptomatic of fraudulent reporting
· Numeric stratification and the circumvention of approval authority
· Joining databases to detect false vendors, ghosts on the payroll, and revenue loss
· Comparing databases to extract escalating activity over several periods, symptomatic of false vendors, cash misappropriation, and ‘black hole’ accounts
· Benford's Law and its application
· Weaving techniques into a continuous monitoring program
· Application of data analysis to your own environment
Instructors
Scott Langlinais delivers training seminars worldwide on properly addressing fraud, waste and abuse. He has worked with leaders of Fortune 500 companies, top public accounting firms, and government entities to design and implement strategies for establishing an environment hostile to fraud. On a tactical level he teaches concepts such as data analysis techniques and a five-step approach to fraud detection that finance professionals, auditors, and investigators have used to successfully prevent, detect and respond to wrongdoing.
Scott is affiliated with Courtenay Thompson & Associates for the purpose of developing and providing training on fraud-related topics. He is the developer and instructor of Using Data Analysis to Detect Fraud & Error, Detecting Fraud Using IDEA, and Fraud Risk Workshop. He speaks at conferences hosted by the Institute of Internal Auditors, the American Institute of Certified Public Accountants and the Association of Certified Fraud Examiners. The International Risk Management Institute has published several of his articles in relation to fraud prevention and response.
Prior to starting his own practice in 2003, Mr. Langlinais held public accounting and internal audit leadership positions, most recently serving as Director of Internal Audit and Security for a NASDAQ 100 software company. His investigations of fraud and gross negligence have resulted in removal of perpetrators, successful litigation, and recovery of millions of dollars.
Mr. Langlinais has served as the Founder and Director of the Dallas Tax Assistance Program, a not-for-profit organization that assists low-income families with federal tax return preparation. He received a BBA degree from the University of Notre Dame and is a Certified Public Accountant.
Additional Information
If you are making travel plans to come to Austin, we recommend making "refundable" air and hotel reservations or waiting until 14 days before the class to actually book your reservations. Courses are occasionally canceled or rescheduled due to low enrollment. We determine whether a course has enough participants 16 days prior to the course date. If we cancel or reschedule, we will email the participant and his or her billing contact no later than 14 days before the original class date.
The course coordinator will contact you with parking information. Handicapped parking is free at the meters around the downtown area.
Vending machines with Coca-Cola products and various snack items are available. There is also a refrigerator and microwave in our coffee bar area. Feel free to bring in your own drinks and food if you prefer.
You might want to bring a light sweater or jacket, as room temperatures vary.
To see answers to our Frequently Asked Questions, visit http://www.sao.texas.gov/training/faq.html.