Fraud and Cash Receipts: Common Frauds and Internal Controls

Why Should You Attend:

According to a recent 2014 study conducted by the Association of Certified Fraud Examiners (ACFE):

• 5% of all revenues in the United States are lost annually as a result of fraud. 28.8% of all companies with less than 100 employee are victims of fraud with an average loss of $154,000. 23.6% of all companies with 100 or more employees are victims of fraud with an average loss of $128,000. Larger companies tend to have more or better internal controls in place and therefore, losses get detected sooner or the controls act as deterrents to keep the frauds from occurring.
• Approximately 77% of the frauds in the study were committed by individuals working in one of seven departments: accounting, operations, sales, executive/upper management, customer service, purchasing and finance. 84% of the people committed fraud have never been convicted or terminated from a job for committing fraud in the past. On average it takes 18 months between when a fraud begins to occur and when it is finally detected.
• The most common and typically the largest frauds in terms of dollar amount of losses occur in the cash receipts and revenue cycles.

With these daunting statistics it’s important that every business owner, controller, vice president of finance, chief financial officer (CFO), auditor, or any individual who oversees the cash receipts function or the revenue cycle in a company understand the types of fraud out there and the internal controls or best practices that are available to detect and prevent these losses from occurring.

Areas Covered in the Webinar:

• Types of frauds that occur in the revenue cycle and cash receipts function.
• Common fraud risks in the revenue cycle and cash receipts function.
• Red flags or warning signs to look out for that may indicate someone is committing fraud.
• Internal controls you can implement to detect or prevent fraud in the revenue cycle and cash receipts function.
• How to analyze whether your internal controls are working as intended and adequately designed?
• Performing a cost benefit analysis to determine whether it makes business sense to correct a control deficiency.

Who Will Benefit:

• Business owners
• Anyone responsible for ensuring that a company or not-for-profit has adequate internal controls over the cash receipts / revenue cycle like a chief financial officer (CFO), controller, vice president of finance, chief risk officer, or even a member of an audit committee or board of directors
• CPAs who perform internal audit procedures or opinion audit services
• Internal auditors

Instructor Profile:

Toby Lawrence is the president of Lawrence Advisory Services, a consulting firm that specializes in providing various value added consulting services to banks and credit unions. Mr. Lawrence has almost 30 years of experience working in or serving financial institutions including serving as the president and CEO of a community bank and as a partner in two separate national CPA and consulting firms, McGladrey and CliftonLarsonAllen.

He has worked with hundreds of institutions in his career, ranging in size from $50 million to over $16 billion in total assets. He also served as a consultant to the Federal Deposit Insurance Corporation and the Federal Housing Finance Authority that oversees Fannie Mae, Freddie Mac, and the Federal Home Loan Bank system.

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