Courtenay Thompson Reveals Steps for Preventing Fraud and Corruption

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All fraud and corruption cannot be stopped! Bribery, insider trading, record embezzlements in government and industry, construction fraud and investment losses are all making the news.

Fraud Risk Workshop, June 18-19 in Dallas

make sure that the CEO and other executives are knowledgeable about fraud exposures and will not tolerate dishonesty…

Courtenay Thompson, a recognized authority on fraud and corruption training, reveals six practical steps for audit and finance professionals to take to prevent fraud and corruption. Although there may be no hope of stopping all fraud and corruption, there is hope for individual finance professionals and the organizations they serve. They can make a difference.

Meet the challenges of fraud on your own terms; not on the media, law enforcement or regulators’ terms. A professional approach to fraud and corruption means timely detection, effective response and practical prevention.

Practical Steps for Preventing Fraud and Corruption

1.    Mobilize management
Make sure that the CEO and other executives are knowledgeable about fraud exposures and will not tolerate dishonesty, even though fraud benefits the organization. Define and communicate fraud-related expectations about detection and executive example. Develop a fraud policy outlining the expectations.

2.    Prevent by screening
Do criminal background checks on job applicants, vendors and contractors, in accordance with law and contract. Determine litigation and performance issues for potential vendors and contractors. Consider vendor performance history with your own organization.

3.    Reduce the opportunity for fraud to occur and go undetected
In addition to standard controls, encourage reviewers to be curious, asking for detail and reviewing with purpose. Use management sampling of work and quality assurance techniques. Mandatory vacation and rotation of assignments can surface fraud requiring ongoing cover-up. Include right-to-audit provisions in contracts and purchase orders.

4.    Make people believe fraud will be detected
Build detection into routine management and internal audit practices. Use technology to surface fraud. Audit third parties to detect that which can only be seen in their records. Establish communication methods that encourage employees and others to report without fear of disclosure or retribution.

5.    Make people believe fraud will be punished
Fraud policy should call for consistent case handling. Consequences should address disciplinary action, termination of employment, reporting to law enforcement, and civil suit. For third parties, consequences may include reporting to law enforcement and regulators, and civil suit. Require vendors to adhere to fraud and gift policies.

6.    Hold management accountable
One element of complete investigation is determining career impact for managers over the area. If willful blindness or gross negligence contributed to the fraud occurring or going undetected many organizations will demote or fire the manager.

Fraud Risk Workshop

June 18-19, Dallas

These and other fraud activities will be discussed in detail at the two-day Fraud Risk Workshop for Finance and Audit Professionals. This workshop brings together proven approaches to fraud detection and prevention. Instructors Scott Langlinais and Courtenay Thompson will provide insights and observations from current technology and case studies. Attendees will learn how to recognize and respond to risks before they cause severe damage, and develop an instructor-guided risk and response plan. Build credibility by being part of the fraud solution. 16 CPE credits.

About Courtenay Thompson & Associates

Courtenay Thompson & Associates (http://www.ctassoc.com) provides fraud-related education and advisory services. Current topics include fraud detection, prevention and investigation, fraud awareness for managers, construction fraud, and purchasing, contract and procurement fraud. Courses are designed to address situations and issues actually encountered. Seminars are led by instructors with extensive work experience in the topic being taught. Experience and solid course design combine with training expertise to assure a high quality learning experience.

About The Construction Audit and Cost Control Institute

The Construction Audit and Cost Control Institute (CAACCI) of Dallas, Texas has been providing public offering and in-house professional development training seminars in affiliation with Courtenay Thompson & Associates since 2008. The principal instructors (Courtenay Thompson and Rich Townsend) have been providing construction audit and fraud professional development training to management and auditors for over 20 years. CAACCI members include project management and construction audit representatives from a wide range of private and public organizations. For more information on our construction audit and construction fraud seminars, go to http://www.caacci.org.

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Mr. Courtenay Thompson

Ms. Lynn Runyon
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