Why Don't Auditors Find (More) Fraud?
The noble audit profession is often associated with uncovering fraud and financial schemes, especially in the private sector, even if that is not an auditor's truest function. When auditors fail to uncover a fraud scheme and the losses become public the results can be disastrous for the audit firm and public trust.
According to one well established study, external auditors find fraud only 4% of the time while internal auditors are discovering fraud only 15% of the time. A fraud scheme has a higher chance of being caught by accident at 7%. But why? In this course we discuss some options for mitigating audit risk to fraud, the staggering financial loss that occurs when a fraud - particularly financial statement fraud - is perpetrated, and some techniques to consider to add to the auditing tool chest.
Aaron Denbo is a seasoned instructor, interviewer, and investigator who focuses on applying innovative and effective techniques to the investigative process. Mr. Denbo is a Certified Fraud Examiner and Certified Forensic Interviewer with investigative specializations in Healthcare Fraud, Organized Crime, Interviewing, and S/OSINT. He earned a Masters degrees in Religion and a Master of Applied Science in Security Management with a subject matter focus on Organizational Security.
He also holds advanced certificates in Forensic Linguistics and a certificate in Crime Prevention Through Environmental Design. His investigative background includes fraud investigation in Higher Education entitlement programs, Healthcare Fraud, and Insurance fraud. He is currently a fraud investigator on the west coast of the US and Special Investigations instructor at the Braven Academy.