Effective fraud risk management requires an integrated approach. Too often, businesses implement some helpful practices, but overlook other principles that ensure the full spectrum of their unique risks is addressed. This course uses a holistic approach that brings together key principles and practices using the updated COSO fraud risk management framework.

This course provides participants with an understanding of fraud and the basic tools to undertake a fraud risk assessment. Using “real life” examples of fraud in the materials provided as well as examples based on instructor experiences, participants will gain an understanding of fraud, the risks it poses to an organization and the need to manage that risk. Case discussions, sample codes of conduct, fraud policies, fraud risk checklists, numerous examples and other practical materials including discussion of ethics within an organization will help participants build a corporate culture and fraud risk management framework that prevents and detects fraudulent activity.

There is some overlap between this course and Fraud Happens: What to Do When you Suspect Fraud, which focuses on COSO Principle 4 and goes into much more detail about relevant investigate and legal tools and techniques to perform investigations.

Topics Include:

• Why we need to manage fraud risks?
• COSO framework for Fraud Risk Management:
  • Principle 1: Governance - creating an ethical environment: discussion about codes of conduct, fraud policies, hotlines, ethics training, employee declarations, and other practices.
  • Principle 2: Comprehensive fraud risk assessment: fraud indicators and red flags, and a series of fraud risk assessment cases.
  • Principle 3: Preventive and detective fraud control activities: a high-level overview of potential controls.
  • Principle 4: Fraud investigation protocol: high-level overview of how to properly react to fraud, investigation considerations, taking corrective action and fidelity insurance matters.
  • Principle 5: Fraud risk management monitoring: ongoing evaluation and timely communication, with an introduction to data analytics.

NOTE: No updates or changes were made to the 2024 version of this course. If you completed the course in 2023, please be advised the 2024 course material has not changed. If you have any questions, please contact pdevents@cpaontario.ca.

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Upon completion of this course, you will be able to:

• Describe what fraud is and why it poses a risk to every organization.
• Identify potential indicators of fraud.
• Describe the five key elements of the COSO Fraud Risk Management Framework.
• Prepare a basic fraud risk assessment.