Auditing For Auditing For FraudFraud

Presented by:Presented by:

Dennis F. Dycus, CPA, CFE, CGFMDennis F. Dycus, CPA, CFE, CGFMwww.dennisdycus.com

dfdcpa@bellsouth.netdfdcpa@bellsouth.net

AGA – Baltimore ChapterAGA – Baltimore Chapter

Baltimore, MDBaltimore, MDMay 78, 2012May 78, 2012

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Executive SummaryExecutive Summary Participants in our survey estimated that U.S. organizations lose 5% Participants in our survey estimated that U.S. organizations lose 5%

of their annual revenues to fraud. Applied to the estimated 2009 of their annual revenues to fraud. Applied to the estimated 2009 Gross World Product, this 5% figure translates to Gross World Product, this 5% figure translates to a potential total a potential total fraud los of more than $2.9 trillion.fraud los of more than $2.9 trillion.

Occupational fraud schemes tend to be extremely costly. Occupational fraud schemes tend to be extremely costly. The The median loss caused by the occupational frauds in this study was median loss caused by the occupational frauds in this study was $160,000. Nearly one-quarter of the frauds involved losses of at least $160,000. Nearly one-quarter of the frauds involved losses of at least $1 million. $1 million.

Occupational fraud schemes frequently continue for 18 months Occupational fraud schemes frequently continue for 18 months before they are detected. before they are detected. The typical fraud in our study lasted two The typical fraud in our study lasted two years from the time it began until the time it was caught by the victim years from the time it began until the time it was caught by the victim organization. organization.

How Occupational Fraud Is CommittedHow Occupational Fraud Is Committed

Occupational Frauds by Category — FrequencyOccupational Frauds by Category — Frequency33

©2010 Association of Certified Fraud Examiners, Inc. 4

3The sum of percentages in this chart exceeds 100% because several cases involved schemes from more than one category.

How Occupational Fraud Is CommittedHow Occupational Fraud Is Committed

Occupational Frauds by Category — Median LossOccupational Frauds by Category — Median Loss

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Fraud Examiners, Inc. 5

Executive SummaryExecutive Summary Small businesses are especially vulnerable to Small businesses are especially vulnerable to

occupational fraud. (31%) The median loss occupational fraud. (31%) The median loss suffered by organizations with fewer than 100 suffered by organizations with fewer than 100 employees was $150,000. employees was $150,000. This was higher than This was higher than the median loss in any other category, including the median loss in any other category, including the largest organizations. Small businesses also the largest organizations. Small businesses also suffered the largest losses in our 2008 study. suffered the largest losses in our 2008 study. Check tampering and fraudulent billing were the Check tampering and fraudulent billing were the most common small business fraud schemes.most common small business fraud schemes.

Victim OrganizationsVictim OrganizationsSize of Victim Organization (U.S. cases only) — Median LossSize of Victim Organization (U.S. cases only) — Median Loss

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Fraud Examiners, Inc. 7

Executive SummaryExecutive Summary

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Lack of adequate internal controls was most commonly cited as the factor that allowed fraud to occur. Almost 38% of respondents cited inadequate internal controls as a primary contributing factor in the frauds they investigated. Lack of management review and override of existing controls were each cited by 17.9% of respondents.

Executive SummaryExecutive Summary Eighty percent of victim organizations Eighty percent of victim organizations

modified their anti-fraud controls after modified their anti-fraud controls after discovering that they had been defrauded.discovering that they had been defrauded. The most common change was to increase The most common change was to increase segregation of duties, which occurred in 61% segregation of duties, which occurred in 61% of cases. Increase of management review was of cases. Increase of management review was the next most common response, followed by the next most common response, followed by surprise audits.surprise audits.

Victim OrganizationsVictim OrganizationsVictim Organizations That Modified Controls After Discovery of FraudVictim Organizations That Modified Controls After Discovery of Fraud

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Executive SummaryExecutive Summary

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Fraud perpetrators often display behavioral traits that serve as indicators of possible illegal behavior. The most commonly cited behavioral red flags were perpetrators living beyond their apparent means (43% of cases) or experiencing financial difficulties at the time of the frauds (36%). In financial statement fraud cases, which tend to be the most costly, excessive organizational pressure to perform was a particularly strong warning sign.

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How Occupational Fraud is CommittedHow Occupational Fraud is Committed

Occupational Frauds by Category — Frequency

Initial Detection of Occupational Frauds4

4The sum of percentages in this chart exceeds 100 percent because in some cases respondents identified more than one detection method.

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Auditing For FraudAuditing For FraudAttributes of a Fraud AuditorAttributes of a Fraud Auditor

(Frauditor)(Frauditor) Ability to deal effectively with peopleAbility to deal effectively with people AttitudeAttitude Show Interest In OthersShow Interest In Others Ability to establish rapport with strangersAbility to establish rapport with strangers Adapting to different personalities and Adapting to different personalities and

circumstancescircumstances

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Auditing For FraudAuditing For FraudFraud:Fraud: The intentional, wrongful The intentional, wrongful obtaining of either money or some other obtaining of either money or some other advantage or benefit. Fraud includes theft, advantage or benefit. Fraud includes theft, embezzlement, false statements, illegal embezzlement, false statements, illegal commission, kickbacks, conspiracies, commission, kickbacks, conspiracies, obtaining contracts through collusive obtaining contracts through collusive arrangements, and similar devices.arrangements, and similar devices.

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Auditing For FraudAuditing For FraudAbuse:Abuse: Administrative violations of Administrative violations of departmental, agency, program regulations, departmental, agency, program regulations, policies or procedures which impair the policies or procedures which impair the effective and efficient execution of effective and efficient execution of programs or operations. These violations programs or operations. These violations may result in losses, or they may result in may result in losses, or they may result in denial or reduction in lawfully authorized denial or reduction in lawfully authorized benefits to participants.benefits to participants.

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Auditing For FraudAuditing For FraudWaste:Waste: Incurring unnecessary cost as a Incurring unnecessary cost as a result of inefficient or ineffective practices, result of inefficient or ineffective practices, systems or controls.systems or controls.

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Auditing For FraudAuditing For FraudSix Common Myths About FraudSix Common Myths About Fraud

1.1. Most people will not commit fraudMost people will not commit fraud

2.2. Fraud is not materialFraud is not material

3.3. Most fraud goes undetectedMost fraud goes undetected

4.4. Fraud is usually well concealedFraud is usually well concealed

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Auditing For FraudAuditing For FraudIn order for fraud to exist, we have In order for fraud to exist, we have to take it and make people think it’s to take it and make people think it’s something else. We often look right something else. We often look right at it and not see it because we think at it and not see it because we think it’s something else.it’s something else.

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Auditing For FraudAuditing For FraudCommon Myths ContinuedCommon Myths Continued

5.5. The auditor can’t do a better job in detecting The auditor can’t do a better job in detecting fraudfraud

6.6. Prosecuting fraud perpetrators deters othersProsecuting fraud perpetrators deters others

Auditing For FraudAuditing For FraudGeneral Comments About FraudGeneral Comments About Fraud

A fraud specialist needs to be on siteA fraud specialist needs to be on site It’s impossible for the auditor to It’s impossible for the auditor to

satisfy everyonesatisfy everyone Interviews are the most critical step of Interviews are the most critical step of

a fraud examinationa fraud examination22

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Auditing For FraudAuditing For FraudGeneral Comments About FraudGeneral Comments About Fraud

Early audit involvement is neededEarly audit involvement is needed Trials are (almost) a no-win situationTrials are (almost) a no-win situation Data processing frauds are no different from Data processing frauds are no different from

manual frauds ….. exceptmanual frauds ….. except Management doesn’t think fraud will happen Management doesn’t think fraud will happen

to themto them The person committing fraud tends to be The person committing fraud tends to be

progressiveprogressive

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Auditing For FraudAuditing For Fraud Fraud is almost always first defended as an Fraud is almost always first defended as an

“accounting problem.” (It’s the computer’s “accounting problem.” (It’s the computer’s fault.)fault.)

The perpetrator may admit to what the auditor The perpetrator may admit to what the auditor knows …. if ….knows …. if ….

The position and background of the guilty The position and background of the guilty person are unpredictableperson are unpredictable

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Auditing For FraudAuditing For Fraud The No. 1 Internal Control WeaknessThe No. 1 Internal Control Weakness

Blind TrustBlind Trust Most frauds are passiveMost frauds are passive Fraud perpetrators are often repeat offenders Fraud perpetrators are often repeat offenders

(Bet you can’t do it just once!)(Bet you can’t do it just once!)

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Auditing For FraudAuditing For FraudReasons Auditors Fail To Detect FraudReasons Auditors Fail To Detect Fraud

We mechanically “tick and turn.” (And we’re We mechanically “tick and turn.” (And we’re darn good at it!)darn good at it!)

We don’t perform the basis, traditional audit We don’t perform the basis, traditional audit tests and procedurestests and procedures

Lack of “substantive” testingLack of “substantive” testing We avoid those “High Risk” areas, especially We avoid those “High Risk” areas, especially

if they are if they are immaterialimmaterial in amount in amount

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Auditing For FraudAuditing For Fraud Lack of adequate training to recognize fraud Lack of adequate training to recognize fraud

indicators ….. But we sure can follow the indicators ….. But we sure can follow the audit work program!audit work program!

We tend to accept any We tend to accept any ReasonableReasonable auditee auditee explanation for an audit exception. (Sounds explanation for an audit exception. (Sounds Good To Me!)Good To Me!) But does it make sense?But does it make sense?

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Auditing For FraudAuditing For Fraud We don’t have adequate training in order to We don’t have adequate training in order to

recognize basic internal control weaknesses recognize basic internal control weaknesses and what can happen as a result of suchand what can happen as a result of such

Inadequate audit time budgetsInadequate audit time budgets We just don’t want to find fraud because it We just don’t want to find fraud because it

causes problems in our predictable livescauses problems in our predictable lives We We ASSUMEASSUME

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Auditing For FraudAuditing For Fraud Never ever, ever anticipate what you Never ever, ever anticipate what you

will or will not find (SAS N0. 99)will or will not find (SAS N0. 99) Just because you have never found fraud at a Just because you have never found fraud at a

certain client’s operations, don’t anticipate that certain client’s operations, don’t anticipate that you won’t find fraud this yearyou won’t find fraud this year

Just because you found fraud for the last five Just because you found fraud for the last five years, don’t anticipate that you’ll probably years, don’t anticipate that you’ll probably find fraud this yearfind fraud this year

Go in neutral – I don’t know but I’ll lookGo in neutral – I don’t know but I’ll look

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Auditing For FraudAuditing For FraudSociety Encourages Fraud By:Society Encourages Fraud By:1.1. Failing to prosecuteFailing to prosecute

2.2. Generally accepting the lack of integrityGenerally accepting the lack of integrity

3.3. Inefficiencies in the judicial systemInefficiencies in the judicial system

4.4. Ostracism of the whistle blowerOstracism of the whistle blower

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Auditing For FraudAuditing For Fraud How does management (appear to) How does management (appear to)

participate in fraud?participate in fraud?

By Failing To:By Failing To: Establish and document responsibilityEstablish and document responsibility Separate job responsibilitiesSeparate job responsibilities Establish goals and objectives and develop a Establish goals and objectives and develop a

system to enable one to measure successsystem to enable one to measure success

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Auditing For FraudAuditing For FraudBy Failing To:By Failing To: Hire qualified and honest personnelHire qualified and honest personnel

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Auditing For FraudAuditing For FraudBy Failing To:By Failing To: Hire qualified and honest personnelHire qualified and honest personnel Develop consistent personnel policiesDevelop consistent personnel policies Have written policies and proceduresHave written policies and procedures Have adequate controls over internal Have adequate controls over internal

documents used to account for cashdocuments used to account for cash

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Auditing For FraudAuditing For FraudBy Failing To:By Failing To: Ensure adequate physical security for assets Ensure adequate physical security for assets

and recordsand records Have an independent inventory of assetsHave an independent inventory of assets Assign a high priority to internal controlAssign a high priority to internal control Have an adequate on-the-job training programHave an adequate on-the-job training program Use information provided by employees Use information provided by employees

related to fraud, waste and abuserelated to fraud, waste and abuse

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Auditing For FraudAuditing For Fraud SAS No. 99 – SAS No. 99 – Consideration of Fraud in a Consideration of Fraud in a

Financial Statement AuditFinancial Statement Audit Now the auditor is required toNow the auditor is required to ask questions ask questions

about fraudabout fraud Brainstorming with staffBrainstorming with staff Auditor must now determine if there is an Auditor must now determine if there is an

increased risk for fraudincreased risk for fraud If so, he must then design tests to determine if a If so, he must then design tests to determine if a

material fraud has occurred material fraud has occurred

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Auditing For FraudAuditing For Fraud Must be able to distinguish between a fraud Must be able to distinguish between a fraud

and an errorand an error

RememberRemember

Fraud and StupidFraud and Stupid

Often Look Exactly the SameOften Look Exactly the Same

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Auditing For FraudAuditing For FraudThere are two types of fraud:There are two types of fraud: Fraudulent Financial Statements (5% - Fraudulent Financial Statements (5% -

15%)15%) Misappropriation of assets 85% - 95%)Misappropriation of assets 85% - 95%) Who stealsWho steals

The basically honest personThe basically honest person

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Auditing For FraudAuditing For Fraud Three things must be present for a basically Three things must be present for a basically

honest individual to commit fraud:honest individual to commit fraud:

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FRAUD TRIANGLEFRAUD TRIANGLE

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Fraud TriangleFraud TriangleNeed Rationale

Opportunity

Control Environment

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Auditing For FraudAuditing For Fraud Falsified documents are often involved, Falsified documents are often involved,

including forgeryincluding forgery In my opinion, contrary to SAS No. 99, fraud In my opinion, contrary to SAS No. 99, fraud

is usually NOT well concealed if …..is usually NOT well concealed if …..

You know what to look forYou know what to look for

Auditing For FraudAuditing For FraudBut then again ….But then again ….

If you go in with your eyes If you go in with your eyes wide shut …..wide shut …..

Chances are, you won’t find Chances are, you won’t find anything!anything!

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Auditing For FraudAuditing For Fraud Characteristics of misappropriation of Characteristics of misappropriation of

assets:assets: Susceptibility (Opportunity/Inherent Risks)Susceptibility (Opportunity/Inherent Risks) Employee relationships or pressuresEmployee relationships or pressures The presence or absence of controls that The presence or absence of controls that

prevent or detect misappropriation of assetsprevent or detect misappropriation of assets Size of organizations should be taken into Size of organizations should be taken into

considerationconsideration Complexity of operationsComplexity of operations

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Auditing For FraudAuditing For Fraud Assessment of risk is an ongoing activity, Assessment of risk is an ongoing activity,

from planning to conclusion of the auditfrom planning to conclusion of the audit Don’t be a creature of habitDon’t be a creature of habit Don’t do the same ol’ same ol’ audit Don’t do the same ol’ same ol’ audit

proceduresprocedures Talk to peopleTalk to people By definition, revenue recognition is defined By definition, revenue recognition is defined

as a high-risk areaas a high-risk area

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Auditing For FraudAuditing For FraudThe Five Step Approach The Five Step Approach

to Fraud Detectionto Fraud Detection Know your exposuresKnow your exposures Know the symptomsKnow the symptoms Be alert for the symptomsBe alert for the symptoms Build your audit programs to look for Build your audit programs to look for

symptomssymptoms Follow through on all symptoms observedFollow through on all symptoms observed

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Auditing For FraudAuditing For FraudCharacteristics of a well written reportCharacteristics of a well written report1.1. AccuracyAccuracy2.2. ClarityClarity3.3. ImpartialityImpartiality4.4. RelevanceRelevance5.5. TimelinessTimeliness6.6. OpinionsOpinions7.7. BrevityBrevity

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How Not Two WriteHow Not Two WriteSt. Augustine: “The area at the rear of the St. Augustine: “The area at the rear of the human body which lies between two imaginary human body which lies between two imaginary lines running parallel to the ground when a lines running parallel to the ground when a person is standing, the first or top of such line person is standing, the first or top of such line drawn at the top of the cleavage of the nates drawn at the top of the cleavage of the nates (i.e., the prominence formed by the muscles (i.e., the prominence formed by the muscles running from the back of the hip to the back of running from the back of the hip to the back of the leg) and the second or bottom line drawn at the leg) and the second or bottom line drawn at the lowest visible point of this cleavage or the the lowest visible point of this cleavage or the lowest point of the curvature of the fleshy ….lowest point of the curvature of the fleshy ….

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… … protuberance, whichever is lower, and protuberance, whichever is lower, and between lines are perpendicular to the ground between lines are perpendicular to the ground and to the horizontal lines described above, and and to the horizontal lines described above, and which perpendicular lines are drawn through the which perpendicular lines are drawn through the point at which each nate meets the outer side of point at which each nate meets the outer side of each leg.”each leg.”

In an effort to come up with an ordinance that In an effort to come up with an ordinance that would ban some skimpy swimsuits from would ban some skimpy swimsuits from beaches, St. Johns County Commissioners are beaches, St. Johns County Commissioners are mulling a 136-word definition of the word mulling a 136-word definition of the word “buttocks.”“buttocks.”

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Auditing For FraudAuditing For FraudPrimary Goals In Fraud DevelopmentPrimary Goals In Fraud Development

YOU control the scope of an auditYOU control the scope of an audit Be 100% accurateBe 100% accurate

99% won’t get it!99% won’t get it! Don’t go to courtDon’t go to court

Obtain a confessionObtain a confession

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Auditing For FraudAuditing For FraudExamination MethodologyExamination Methodology

Document ExaminationDocument Examination InterviewingInterviewing InterrogationInterrogation

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Auditing For FraudAuditing For Fraud In an investigation, the auditor is not there to In an investigation, the auditor is not there to

help everybody to do a better jobhelp everybody to do a better job The role of the investigator may be clearly The role of the investigator may be clearly

adversarial in natureadversarial in nature You may find auditees/suspects using personal You may find auditees/suspects using personal

attacks to discredit him or herattacks to discredit him or her There can be danger involved in conducting There can be danger involved in conducting

investigationsinvestigations

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Auditing For FraudAuditing For Fraud You may find adversaries where allies were You may find adversaries where allies were

expected or were previouslyexpected or were previously Be quiet about your workBe quiet about your work

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Auditing For FraudAuditing For Fraud

To Catch A ThiefTo Catch A Thief

Think Like One!Think Like One!

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Auditing For FraudAuditing For Fraud

First, You Have To LookFirst, You Have To Look

SecondSecond

You Have To ListenYou Have To Listen

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Auditing For FraudAuditing For FraudThree Major Causes of FraudThree Major Causes of Fraud

(The Fraud Triangle)(The Fraud Triangle)1.1. Situational PressuresSituational Pressures

AlcoholAlcohol DrugsDrugs GamblingGambling SexSex

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Auditing For FraudAuditing For Fraud1.1. OpportunitiesOpportunities

Always provided by managementAlways provided by management

2.2. RationalizationRationalization

When you have an unsharable need, When you have an unsharable need, combined with opportunity and combined with opportunity and rationalization, you will have fraudrationalization, you will have fraud

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Auditing For FraudAuditing For FraudCommon Types of Fraud Encountered Common Types of Fraud Encountered

In Our InvestigationsIn Our Investigations Removing small amounts of money from cash Removing small amounts of money from cash

funds and registersfunds and registers Taking merchandise, supplies and equipmentTaking merchandise, supplies and equipment Overcharging customers and pocketing the Overcharging customers and pocketing the

differencedifference

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Auditing For FraudAuditing For Fraud Carrying fictitious names on the payrollCarrying fictitious names on the payroll Falsifying inventories to cover theftsFalsifying inventories to cover thefts Manipulating time cardsManipulating time cards Paying false invoices, either self-prepared or Paying false invoices, either self-prepared or

obtained through collusion with suppliersobtained through collusion with suppliers Overloading expense accountsOverloading expense accounts Unauthorized long distance phone chargesUnauthorized long distance phone charges

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Auditing For FraudAuditing For Fraud Carrying employees on the payroll beyond Carrying employees on the payroll beyond

their actual severance datetheir actual severance date Charging personal purchases to the Charging personal purchases to the

government on credit cards or split purchase government on credit cards or split purchase ordersorders

Claiming overtime that was not earnedClaiming overtime that was not earned Overstatement of claims for reimbursementOverstatement of claims for reimbursement

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Auditing For FraudAuditing For Fraud Advances not accounted forAdvances not accounted for Fraudulent penalty paymentsFraudulent penalty payments

Failure to assess/collect liquidated damage claimsFailure to assess/collect liquidated damage claims

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Auditing For FraudAuditing For FraudDanger Signs That May Indicate FraudDanger Signs That May Indicate Fraud

Regular borrowing small amounts of cash Regular borrowing small amounts of cash from fellow employeesfrom fellow employees

Asking an individual or business to “hold” the Asking an individual or business to “hold” the maker’s checkmaker’s check

Understaffing resulting in overtime and no Understaffing resulting in overtime and no vacationvacation

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Auditing For FraudAuditing For Fraud Difficulty in obtaining audit evidenceDifficulty in obtaining audit evidence Low or inadequate salaryLow or inadequate salary Resentment – not treated fairly – being taken Resentment – not treated fairly – being taken

advantage ofadvantage of Severe disciplinary actionsSevere disciplinary actions Lack of respect or appreciation by superiorsLack of respect or appreciation by superiors Highly domineering senior managementHighly domineering senior management

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Auditing For FraudAuditing For Fraud Living and spending beyond their means Living and spending beyond their means

(43%)(43%) Conflict of interestConflict of interest Car license number on invoicesCar license number on invoices Open-ended contractsOpen-ended contracts

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Auditing For FraudAuditing For FraudIndicators of Possible FraudIndicators of Possible FraudReceipts and DisbursementsReceipts and Disbursements

Unusual checksUnusual checks Any check for an even amount in excess of Any check for an even amount in excess of

$50$50 Any transaction converted to cashAny transaction converted to cash Any deposit or currency in a large amountAny deposit or currency in a large amount

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Auditing For FraudAuditing For Fraud Any non-payroll checks made payable to Any non-payroll checks made payable to

employeesemployees Missing or destroyed books or recordsMissing or destroyed books or records Frequent use of no-check withdrawalsFrequent use of no-check withdrawals Altered entries or documentsAltered entries or documents Loans to employees or othersLoans to employees or others Excessive use of holding or clearing accountsExcessive use of holding or clearing accounts Large increases in monthly/quarterly Large increases in monthly/quarterly

expendituresexpenditures

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Auditing For FraudAuditing For FraudIndicators of FraudIndicators of Fraud

Contract FraudContract Fraud Excessive purchasing of small tools/suppliesExcessive purchasing of small tools/supplies Split purchasesSplit purchases Bids – High/Low – Same ones time and againBids – High/Low – Same ones time and again Unsuccessful bidder who becomes a Unsuccessful bidder who becomes a

subcontractor after the contract is awardedsubcontractor after the contract is awarded Large and frequent change ordersLarge and frequent change orders

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Auditing For FraudAuditing For Fraud Minority “fronts”Minority “fronts” Slippages or other contract modificationsSlippages or other contract modifications High level approval of a low level transactionHigh level approval of a low level transaction Presence of a thief’s adding machinePresence of a thief’s adding machine Payroll checks with second endorsementsPayroll checks with second endorsements Failure to meet specificationsFailure to meet specifications Odd purchasesOdd purchases

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Auditing For FraudAuditing For Fraud Copies of invoices rather than originalsCopies of invoices rather than originals Unusual sequence of numbers on vendor Unusual sequence of numbers on vendor

invoicesinvoices Unauthorized or unusual long distance Unauthorized or unusual long distance

telephone calls (Amounts and time)telephone calls (Amounts and time)

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Auditing For FraudAuditing For FraudThe Ten Commandments To Improve The Ten Commandments To Improve

Your Chances of Detecting FraudYour Chances of Detecting Fraud1.1. Assume anyone can commit fraudAssume anyone can commit fraud2.2. Use your knowledge of internal controls to Use your knowledge of internal controls to

think dirtythink dirty and then check it out and then check it out3.3. Good documentation does not mean that Good documentation does not mean that

something happened. It simply means that something happened. It simply means that somebody said that it happenedsomebody said that it happened

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Auditing For FraudAuditing For Fraud4.4. Pay attention to documents, numbers, dates, Pay attention to documents, numbers, dates,

support, amount, tax, different pens, etc.support, amount, tax, different pens, etc.

5.5. Reasonableness of accounting entriesReasonableness of accounting entries

6.6. Pay attention to hints or rumors of Pay attention to hints or rumors of wrongdoingwrongdoing

7.7. Check out hunches - Learn to trust your Check out hunches - Learn to trust your instinctsinstincts

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Auditing For FraudAuditing For Fraud8.8. Be nosey – don’t easily accept explanations, Be nosey – don’t easily accept explanations,

especially if they don’t make sense or you especially if they don’t make sense or you don’t understand themdon’t understand them

9.9. Use statistical sampling to force you to look Use statistical sampling to force you to look at items you would not generally otherwise at items you would not generally otherwise examineexamine

10.10. Look for patterns of unusual transactionsLook for patterns of unusual transactions

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Auditing For FraudAuditing For FraudFinding fraud is a lot like hunting Finding fraud is a lot like hunting

in the woods.in the woods.

The woods are full of animals.The woods are full of animals.

You just have to know what You just have to know what they look like and where they they look like and where they

hide.hide.

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Good Luck HuntingGood Luck HuntingAnd you don’t even have to have a license And you don’t even have to have a license

and it’s always an open season!and it’s always an open season!