How to get started with Fraud Risk Assessment & how to perform Fraud Risk Assessment using Framework

Описание: From #charteredaccountant for #charteredaccountants #companysecretary #lawyers #multidisciplinary #firms #cma #cs #cwa

From backroom to #boardrooms - the topics of #fraud and #fraudriskassessment are nothing new for a #governance #audit #risk #operations and #compliance agenda

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐬𝐭𝐢𝐥𝐥 𝐧𝐞𝐰 & 𝐡𝐚𝐯𝐢𝐧𝐠 𝐬𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭 𝐢𝐦𝐩𝐚𝐜𝐭:
⚫ COVID
⚫ Remote Working
⚫ Increase in Digitization and extensive use of Technology
⚫ Change in Control Environment
⚫ Rising Presssures from all Corners (Economies, Businesses and Individuals)
⚫ Increased opportunities to commit frauds
⚫ Enhanced regulatory scrutiny and actions
⚫ Transformation of Risks and evolving risk landscape


Given the changes in environment, it becomes all the more important for #auditcommittee #boardofdirectors #directorsandofficers to maintain effective oversight, keeping in view the rise in frauds in the recent past and during covid as wellSharing a presentation on getting started with Fraud Risk Assessment - which will be important in planning Fraud Investigations, Forensic Audits and even Internal Audits to some extent



𝐖𝐡𝐚𝐭 𝐢𝐬 𝐭𝐡𝐞𝐫𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧:
✔️ Basics of Fraud and Fraud Risk Assessment (FRA)
✔️ Brief narrative on process of FRA
✔️ Illustrative Fraud Risk Considerations for Frauds
✔️ Illustrative Templates for carrying out FRA and for building fraud scenarios and hypothesis
✔️ Illustrative Fraud Schemes for #Banking #Healthcare #Manufacturing business


Hope you find this useful #videos #youtubevideos #corpgov #fraudrisk #trainingvideos #content #charteredaccountant #fraud #investigation #india #charteredaccountant

Carrying out a fraud #riskassessment for a #business involves a systematic process of identifying potential #fraud risks and assessing their likelihood and potential impact on the business. Here are the general steps involved in conducting a fraud risk assessment:

Identify the key fraud risks: Begin by identifying the specific areas of the business where fraud is most likely to occur. This could include financial transactions, procurement processes, payroll and benefits, or inventory management.

Assess the likelihood and impact of each risk: Once the key fraud risks have been identified, assess the likelihood and potential impact of each risk. This can be done using a fraud risk matrix, which assigns a likelihood and impact rating to each risk.

Evaluate existing controls: Evaluate the effectiveness of existing controls in place to mitigate each risk. This could include reviewing policies and procedures, performing walkthroughs of key processes, and testing controls.

Identify gaps in controls: Identify any gaps in the existing controls that could allow fraud to occur.

Develop a fraud risk management plan: Based on the results of the fraud risk assessment, develop a fraud risk management plan that includes recommendations for strengthening controls, implementing new controls, and monitoring for potential fraud risks.

Implement the fraud risk management plan: Once the fraud risk management plan has been developed, implement the recommended controls and processes to mitigate the identified fraud risks.

Monitor and update the fraud risk assessment: Regularly monitor the effectiveness of the fraud risk management plan and update the fraud risk assessment

Overall, conducting a fraud risk assessment involves a comprehensive and ongoing process of identifying, assessing, and mitigating potential fraud risks in the business. It is important to involve key stakeholders in the process

Implementing an anti-fraud framework involves establishing policies, procedures, and controls designed to prevent, detect, and respond to fraud within an organization:

Establish a fraud risk assessment process: The first step in implementing an anti-fraud framework is to establish a process for identifying and assessing potential fraud risks within the organization.

Develop anti-fraud policies and procedures: Based on the results of the fraud risk assessment, develop policies and procedures designed to prevent, detect, and respond to fraud.

Implement controls to prevent fraud: Implement controls designed to prevent fraud from occurring.

Establish reporting mechanisms: Establish mechanisms for employees to report suspected fraud, such as a whistleblower hotline or reporting portal

Conduct fraud awareness training: Provide fraud awareness training to all employees, including training on how to recognize and report potential fraud risks.

Monitor and investigate potential fraud: Regularly monitor for potential fraud risks and investigate any concerns that are reported. This may involve conducting internal audits or engaging outside experts to investigate potential fraud.

Continuously improve the anti-fraud framework: Regularly review and update the anti-fraud framework to ensure that it remains effective and relevant to the evolving fraud risks facing the organization.