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How Do You Develop a Continuous Fraud Monitoring Program?
Financial Executives International TV
Delhaize Group
Alexis C Bell, Senior Forensic Auditor
Runtime: 6:36
Key Takeaways:
- All companies are at risk for fraud at 7% of their revenues. Continuous fraud monitoring programs help identify where the fraud may be occurring.
- A continuous fraud monitoring model can be developed in Excel. Worksheets include inputs; ratios; standard deviations; Z Scores and classifications of risk.
- Calculate fraud ratio benchmarks at a regional level and use those numbers to develop country and global benchmarks.
- Beneish Indices are highly effective in identifying high risk areas for fraud. Beneish found that on average, “manipulators” were 10-times more likely to manipulate earnings than those classified as “nonmanipulators.”
- Bell recommends monitoring 38 different fraud ratios, which can be found at www.alexiscbell.com.