Become a Certified Fraud Auditor (Cr.FrA)
Join this elite group of international anti-fraud auditor’s professionals by earning your CrFrA credential.
• Step 1 — Join the Association of Certified Forensic Practitioners (ACFP)
• You must be a member to take the CrFrA Exam and earn your CrFrA credential
What Is a Fraud Audit?
A fraud audit is a meticulous review of financial documents, while one searches for the point where the numbers and/or financial statements do not mesh. Fraud audits are done when fraud is suspected. Some companies do them as a precaution—to prevent fraud from happening and to catch it before the offender takes too much money. There is more to a fraud audit, however.
Not an Investigation
Fraud auditing is used to identify fraudulent transactions, not to figure out how they were created. It is a common mistake that many people make—believing that audit and investigation are the same process. The auditor simply traces every transaction performed by the company, looking for the one that is fraudulent, if any. A regular auditor simply checks the numbers for accuracy.
Looking at All of the Records
Fraud auditors often go outside the ledger of accounts to find fraudulent transactions. This may include reviewing receipts, not only from the company, but from customers as well. Any inconsistencies in these numbers could help uncover an act of fraud. These auditors also interview employees, customers and sometimes clients to find out if a fraud has taken place.
There are patterns to every fraud case–these help fraud auditors uncover illegal activity. Many criminals perpetrating a fraud will believe that he is too good to be caught or that the scheme is original. In fact, all fraud has the same indicators that aid the criminal in his crime and the auditor in his search for the same. These include lax management, history of unethical behavior, document tampering and disregard of procedure. These patterns are found wherever there is a fraud crime in progress. Some patterns are less obvious than others, but they are still present.
Types of Fraud
Fraud auditing is designed to look for six types of fraud, according to Business Network’s “Recognizing Fraud Indicators.” These are embezzling, bribes, stealing, extortion, “fictitious transactions,” kickbacks and conflict of interest. Although not all fraud cases can be easily classified, they will always—at the very least—involve one of these categories. Fraud auditors are trained to look specifically for indicators to any of these fraud types.
CrFrA Application Fee:
The CrFrA exam fee is $1250.
Become a Fraud Auditor
To become a fraud auditor, you must obtain a bachelor’s degree in accounting. Take some forensic accounting classes if available. Next, the accountant goes for a certified public accountant’s license or to a special program designed to make him a certified forensic examiner. Depending on the state in which you live, there are specific work-hour and testing requirements to follow. See the resources section for more information.
1. International best practices and instruments for the governance of fraud and corruption, including Board members’, political leaders’, and management accountability for the governance of corruption and fraud
2. ‘Audit’ and ‘Assurance’ evidence vs ‘forensic’ evidence
– Fundamental principles of evidence
– Admissibility requirements of evidence
3. 8 Step Pro-active Fraud Auditing Process for the detection of fraud
4. Understanding and defining corporate governance and corruption and fraud risk as part of good governance, defining fraud, corruption, theft and types of asset misappropriation
5. 7-stage Fraud Auditing Process for Internal and External Auditors relating to:
– Regulatory responsibilities of Internal Auditor from IIA standards
– IIA Standard 1200: Proficiency and Due Professional Care 1210.A2 – sufficient knowledge to evaluate fraud risk and its management
– IIA Standard 1220: Due Professional Care 1220.A1 –
consider the probability of signficant errors, fraud
– IIA Standard 2060: Reporting to Senior Management and the Board Report to senior management and board on significant risk and controls exposures, including fraud risks and governance issues
– IIA Standard 2120: Risk Management 2120.A2 – evaluate potential for fraud and how organization
manages fraud risk
– IIA Standard 2210: Engagement Objectives 2210.A2
– consider the probability of signficant errors, fraud and non-compliance
– Regulatory responsibilities for external auditors
– ISA 240 – Fraudulent financial misstatement auditing focused on asset misappropriation, corruption and fraudulent misstatement
6. Instruments, tools and guidance for evaluating, measuring, planning, identifying and assessing corruption and fraud risks
– Appetite and tolerance in relation to fraud risk governance
– Fraud risk information sources and sourcing techniques
– Corruption and fraud risk stimuli
– The business case for fraud risk governance, and building value – compliance vs the business imperative
– Key business cycles, processes and transactions
– Non-financial fraud risk
– Fraud risks in information, communications and technology
7. Anti-fraud ‘actions’ vs fraud risk ‘response’ vs fraud incident response
– Anti-fraud controls vs Internal controls
– Introduction to fraud auditing and forensic data analysis
– The relationship between fraud auditing and forensic auditing and investigation
8. Compiling a corruption and fraud risk profile/register – a template guide
9. Compiling anti-corruption and anti-fraud strategies