Audit

Adjusting to a new reality

The COVID-19 pandemic changed the way we work and provided an opportunity for fraudsters to scam the populace like never before. The ACFE Board of Regents looks back on its experiences and provides advice on how to fight fraud in this post-coronavirus landscape.

Collegiate online cheating, a predictable result of COVID-19, may threaten the workplace

Cheating in online higher-ed classes existed long before the pandemic. Not surprisingly, exam fraud burgeoned when COVID forced most students to work in isolation. CFEs should consider how to minimize the chances for college cheaters to become occupational fraudsters and so limit negative effects for workplaces.

Place 'ESG' on your radar

Organizations are increasingly striving to meet environmental, social and governance (ESG) standards, at least on paper. CFEs may be well versed in the “G” of ESG but they also need to know about the “E” and “S” to understand whether CEOs are truly sticking to the values they tout.

Are well-known companies more prone to financial statement fraud?

It’s logical to think that companies on the verge of bankruptcy or suffering severe financial stress might be tempted to fudge their financial statements. Yet a recent university study says that large prestigious public firms are even more prone to cooking the books. We look at why this might be the case and the need to delve into the psychology of individual perpetrators.

New mission, same focus: Interview with Preet Bharara, former U.S. attorney for the Southern District of New York

Preet Bharara speaks about lessons learned, the outlook for new insider trading rules under the Biden administration, the challenges of overseeing COVID-relief funds, the difficulties of investigating Ponzi schemes and much more.

Caring for the CARES Act: What comes next?

SIGPR, the U.S. office mandated to audit and investigate fraud and abuse of the $2 trillion COVID-19 aid package known as the CARES Act, is now ready to take on the task at hand. It could be a busy few years ahead.

EFIN tax scam, selecting reputable tax preparers, weather-related scams

Unusual circumstances open opportunities for fraudsters, and 2021 is no exception. Not only has an uptick in online tax filings during the pandemic spurred new ways to cheat Americans out of their refunds, but utility scams related to winter deep-freezes are on the rise. Here’s what you should do to protect yourself.

Record relief money and the fight against fraud

In some of the first COVID-19 articles Fraud Magazine published nearly a year ago, we warned how the pandemic was creating the perfect storm for fraudulent activity to thrive. Sadly, those predictions have proven true as record amounts of COVID-relief money flood the economy.

Reimagining audit quality using Wirecard and PCAOB examples

The Wirecard case and recent PCAOB inspection reports on the top six audit firms highlight continued issues with audit quality and the independent auditor’s responsibility in uncovering material misstatements due to fraud. They also emphasize the need for the auditing profession to hasten improvements.

Taking down a crooked film producer

Fraud Magazine recently spoke with three veteran CFEs about how they break open and dissect investment scams and claw back stolen capital. Though these practitioners weren’t involved in this ongoing Hollywood case, they’ve reviewed the public records. And they’re deeply experienced in the case’s functional components: financial investigation, digital forensics, and asset tracing and recovery. As these experts reveal, their tools and techniques also are potent weapons against other kinds of schemes.

Time to shake things up

“Ikigai,” the Japanese notion of being truly fulfilled and how a person’s work relates to their purpose, spurred former paralegal Tracy Swaim to seek more. Conversations with a fraud investigator excited her about entering the field. She earned her CFE and now works in a job that checks all the boxes for her: mission, passion, vocation and profession.

Open public entities’ ledgers for transparency

Imagine if citizens, journalists, oversight agencies, and internal and external auditors were able to view all transactions of taxpayer and donors’ money online. The fraud prevention and deterrence possibilities are endless.