Thomas G. Keeton Patricia L. Keeton

 Define Fraud  Identify Fraud Characteristics  Tone at the Top & Easy Cheats  Risk Assessment Tools  The Next Step

 A material false statement  Knowledge that the statement was false when it was uttered  Reliance on the false statement by the victim  Damages resulting from the victim’s reliance on the false statement 3

4 Opportunity PressureRationalization

 Global survey  Measuring the costs of occupational fraud  5 percent lost to fraud  $3.5 trillion worldwide 5

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 Skimming  Larceny  Expense Reports  Procurement  Ghosts  Vehicles  Conflict of Interest

 Life Style  Crisis  Little time off

 Tone at the top  AIS review  Hot line  Make an example  Develop a plan & monitor

 Benefits  Who  Tolerance & Policy  Process Controls  Environment Controls  Proactive Detection

 ACFE.com  Wells, JT Principles of Fraud Examination. Wiley.  ACFE Report to the Nations- on Occupational Fraud and Abuse.  Albrecht, WS Fraud Examination. Cengage.

Dr. Patricia L. Keeton Four K Group Dr. Thomas G. Keeton, CPA, CFE Four K Group