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Detecting Corruption

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Date(s): Aug 17, 2021
Time: 8:00AM - 4:30PM
Registration Fee: $229.00
Cancellation Date: Aug 10, 2021
Location: Online

Course Description

Auditors and investigators are fully aware of the high costs of corrupt practices and the difficulty in detecting side deals, kickbacks, and pay-to-play schemes. However, as more officials and executives get indicted, false claims highlight the news, and foreign corrupt practices become exposed, auditors and investigators are being called upon to detect problems before they cause widespread damage.

 

In this workshop, we will examine common forms of corruption, and how unethical practices can grow from seemingly innocuous habits. We will learn how officials, executives, and purchasing personnel employ and conceal corrupt activities, how psychological powers of authority suppress inquiries, and how we can detect problems early. Through case studies and exercises, we will examine how organizations successfully defend against corrupt behavior.


Potential CPE Credits: 8.0
Govt Hours: This class meets 8.0 hours of the 24-hour requirement for governmental CPE under Government Auditing Standards (yellow book), in most cases.
Technical Hours: This class meets 8.0 CPE credits of technical training in compliance with Texas Admin. Code Rule 523.102.

Instruction Type: Live
Experience Level: INTERMEDIATE
Category: 02 Auditing

Course Objectives

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

         Overcome mindsets that prevent people from detecting problems;

         Apply a consistent methodology for problem detection;

         Identify what can go wrong: side deals, kickbacks, conflicts of interest, and pay-to-play;

         Recognize common symptoms of corruption;

         Look for problems in books and records;

         Avoid common pitfalls;

         Recognize abuse of authority and the power of gifts & entertainment;

         Apply techniques successfully used by other organizations to defend against corruption;

         Work through instructor-guided case study exercises, so you can learn to apply lessons to your own environment.

 

 

Preparing to Detect Corruption

         Cases worth knowing

         How problems remain undetected

         The psychology of corruption and dealing with emotional response

         How much corruption is out there?

         Importance of early detection

         Evaluating your environment

         Assessing your fraud policy

 

Detecting Corrupt Behavior

         A method for detecting corruption

         What can go wrong – corrupt practices

         Bribes, kickbacks, & pay-to-play

         The power of gifts & entertainment

         Recognizing symptoms of corrupt activity

         Understanding how people detect and respond to corrupt activities

         Case study exercise: $11 million lost from purchasing cards

         Case study exercise: An executive receives $65 million in kickbacks

 

Practical Solutions to Improve Your Environment

         Working detection into routine processes

         Auditing and monitoring contracts

         A study in bid-rigging and multiple bid processes

         Case study exercise: Corruption in hiring processes

         Comprehensive study: Systemic Corruption in State Government Purchasing

         Creating a plan for your environment


Prerequisites

No prerequisites required.

Government Hours: 4.23(l)


Instructors

Scott Langlinais

Scott Langlinais has dedicated over 20 years of his career as a CPA to fraud detection and investigation.

 

Representative engagements include:

         Bribes & kickbacks paid to the executives of a foreign multi-national corporation by a global manufacturing company.

         $24 million deposit kiting scheme through ATM's. The investigative results were provided to the United States Secret Service.

         Corruption by a Chief Operating Officer that cost their company over $1 million. The results were included in a lawsuit filed with the New York State Supreme Court.

         Theft through the use of company-paid credit cards, the results of which were provided to law enforcement for criminal prosecution.

         $300k fraudulent vendor billing and related civil litigation support.

         Vendor audits resulting in $4.8 million recovered from duplicate payments, fraudulent invoices, and coding errors.

         Travel and entertainment expense procedures resulting in $700,000 in findings and $525,000 recovered from duplicate expenses, unused airline tickets, and fraudulent expense submissions.

 

Scott regularly employs data analysis software to develop continuous monitoring programs and to perform searches for circumstances such as: unbilled revenues, unauthorized cash transfers, employee reimbursement and P-card improprieties, and payments to fictitious vendors and employees. He develops strategic plans including risk analyses, policies & charters, continuous monitoring, Sarbanes-Oxley (SOX) compliance, and procedures for effective internal consulting for organizations of all sizes across various industries.

 

Scott has authored white papers on fraud prevention, detection, and response for the International Risk Management Institute and serves as a regular guest speaker at nationwide conferences and chapter meetings held by the IIA, the ACFE, the AICPA, and ISACA. He has developed training programs and delivered seminars in companies all over the world.

 

Prior to starting his own practice in 2003, Mr. Langlinais held public accounting and internal audit leadership positions, most recently serving as Chief Audit Executive for a NASDAQ 100 software company. He received a BBA degree from the University of Notre Dame.

 


Additional Information

TAC Rule 523.142(g) requires the CPE Sponsor to monitor individual attendance and assign the correct number of CPE credits. Participants will be asked to document their time of arrival and departure in compliance with this Rule. Additionally, attendance will be monitored throughout the day and CPE certificates will reflect actual attendance of each participant.

If you are making travel plans to come to Austin, we recommend making "refundable" air and hotel reservations or waiting until 14 days before the class to actually book your reservations. Courses are occasionally canceled or rescheduled due to low enrollment. We determine whether a course has enough participants 16 days prior to the course date. If we cancel or reschedule, we will email the participant and his or her billing contact no later than 14 days before the original class date.

The course coordinator will contact you with parking information. Handicapped parking is free at the meters around the downtown area.

Vending machines with Coca-Cola products and various snack items are available. There is also a refrigerator and microwave in our coffee bar area. Feel free to bring in your own drinks and food if you prefer.

You might want to bring a light sweater or jacket, as room temperatures vary.

To see answers to our Frequently Asked Questions, visit http://www.sao.texas.gov/training/faq.html.


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