Focus on Fraud - Inventory
Inventory Fraud CPE = 1.5
The Association of Certified Fraud Examiners (ACFE) has developed a fraud tree which categorizes types of fraud schemes into the following three primary areas:
- Asset Misappropriation
- Financial Statement (FS) Fraud
Previous courses have addressed corruption and asset misappropriation related to fraudulent disbursements and financial statement fraud. This course addresses asset misappropriation – specifically related to inventory and other assets.
To identify how fraud can be mitigated, individuals must understand the types of fraud most prevalent to their business. Asset misappropriation is a scheme in which an employee steals or misuses the employing organization’s resources. Considering inventory and other assets, there are multiple methods in which fraud can occur. These extend through the raw materials, work in process, and final goods stages. It can relate to employee theft, vendor fraud or accounting irregularities. This session will focus on the many methods involved in inventory fraud.
- Explore the penalties for asset misappropriation.
- Recognize the definitions of inventory and other assets.
- Identify types of inventory fraud and relevant red flags within the raw materials and Work in Process (WIP) categories.
- Explore the concept and relevant red flags for misstating inventory value.
- Explore the concepts and red flags of accounting inventory type frauds.
- Identify prevention methods for inventory fraud.
- Explore the concept and relevant red flags for “other assets” fraud.
Delivery Method: Self-Study
Consultant, CPA, CGMA, CRMA, MBA, Past Chief Audit Executive
Business Consultant, Trainer, Author
Ms. Fountain has over 40 years of experience in the business profession, which includes public and industry accounting and over 20 years within internal and external auditing combined. She is a nationally recognized trainer and speaker and also a published author. She is a subject matter expert and specializes in Internal Audit, Sarbanes-Oxley, Enterprise Risk Management, Fraud, Governance and Compliance. Ms. Fountain has held two Chief Audit Executive positions for international companies. She currently performs consulting for companies on internal audit, risk management, internal controls, SSAE 18, financial reporting and accounting along with performing training. She has also been instrumental in the establishment of ERM, Sarbanes-Oxley and Governance frameworks.
Ms. Fountain has authored a publication for the Institute of Internal Auditors Research Foundation (IIARF) titled “Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations”. The publication will be released April 20, 2015. In addition, she is authoring a publication for Auerbach on “The Realities of performing the Chief Audit Executive Role”. The publication will be released in the Fall 2015. In addition, she has performed as an adjunct instructor for the School of Business for Grantham University and the School of Business at the University of Kansas.
Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has active, current CPA, CGMA, and CRMA credentials.