Procure-to-Pay Fraud: Detecting and Preventing Purchasing, Receiving and Disbursement Frauds

Why Should You Attend:

Fraud is growing every year, according to the respected international fraud investigation firm, Kroll. The majority of all fraud, according to the Association of Certified Fraud Examiners is committed by employees.

For many organizations, the procure-to-pay cycle offers extensive opportunity for increased operational efficiency. However, it also provides potentially numerous opportunities for fraudsters to exploit control deficiencies in all three stages - purchasing, receiving and disbursements.

One common management mistake in the P2P cycle is adhering to a reactive anti-fraud posture. A criminal act committed in, for example, the purchasing department through a kickback scheme, may be detected and dealt with on an “emergency” basis. Meanwhile, equally, if not more costly frauds may be going unnoticed in the receiving and account payable areas.

Because most of the funds flowing out of the organization do so through the procure-to-pay cycle, it stands to reason that much of the growing fraud threat is centered on these critical closely-linked business functions.

This underscores the urgent need for management to understand the vast variety of frauds in P2P and to apply the necessary detection, audit, reporting and prevention measures.

Learning Objectives:

By attending this webinar Participants will be able to:

• Understand how the most common procurement, receiving and disbursement fraud are perpetrated, including the latest technology-driven crimes that are costing organizations millions of dollars.
• Understand why purchasing, receiving and accounts payable employees commit fraud.
• Recognize the all-important red flags of common P2P frauds.
• Develop a knowledge base of P2P fraud detection tools and techniques.
• Begin creating a framework of effective anti-fraud controls.

Areas Covered in this Webinar:

INTRODUCTION:

• Statistical overview of the fraud problem generally, and T&E fraud specifically.
• Who commits fraud
• Overview of most common P2P fraud schemes.
• Case studies of purchasing, receiving and disbursement fraud.

P2P FRAUD DETECTION AND PREVENTION:

• Red flags of key P2P frauds
• Conducting a Fraud Risk Assessment of the P2P Cycle
• Audit techniques to identify P2P fraud red flags
• Digging deeper for indicators of actual fraud
• Reporting to Management
• Remediating internal control deficiencies in the P2P process
• Case studies of procurement, receiving and disbursement fraud

Who Will Benefit:

• Purchasing managers and senior staff
• Accounts payable managers
• Shipping and receiving/supply chain managers
• Accounting and audit practitioners
• CFOs and senior finance staff
• Controllers
• Procurement executives
• Internal and external audit professionals
• Senior financial management seeking to reduce their vulnerability to costly fraud
• Compliance and ethics managers
• Compliance professionals
• CFOs/senior financial managers
• Security personnel
• Internal control professionals
• Finance and accounting management
• Loss prevention and risk specialists
• Security professionals
• Fraud examiners
• Payments professionals
• Procurement/purchasing and payables specialists

Peter Goldmann
President, White-Collar Crime 101 LLC

Peter Goldmann has 25 years of experience as a business journalist and trainer, having launched, edited and published numerous business trade periodicals covering small business, international trade, management strategy, banking and personal finance. He is a Certified Fraud Examiner (CFE) and a member of the Editorial Advisory Committee of the Association of Certified Fraud Examiners (ACFE) as well as an active member of the Institute of Internal Auditors, the High-Tech Crime Investigation Association and the IOFM Controller Certification Advisory Board.

Mr. Goldman is a regular columnist for the ACFE’s newsletter, The Fraud Examiner and is a frequent contributor to other leading industry publications on anti-fraud topics. He has appeared on Fox Business News, The Wall Street Journal This Morning, The New York Times and Internal Auditor magazine. Mr. Goldman is president of White-Collar Crime 101 LLC, the publisher of White-Collar Crime Fighter, a widely read monthly newsletter for internal auditors, controllers, corporate counsel, financial operations managers and fraud investigators. He is the author of "Fraud in the Markets: Why it Happens and How to Fight It", published by John Wiley & Sons, as well as four other anti-fraud books. He has also developed Fraud Aware, a leading fraud awareness training program.

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