CONTRACT PROCUREMENT, FRAUD IDENTIFICATION & RISK MANAGEMENT

CONTRACT PROCUREMENT, FRAUD IDENTIFICATION & RISK MANAGEMENT

The rise in contract management and the outsourcing of goods and services has created an increase in procurement fraud, which can occur at any stage of the contracting and procurement process. Appropriate controls, fraud prevention strategies and proper tendering processes are necessary in the fight against this fraud. This three-day course will teach you the best practices for preventing, detecting and investigating contract and procurement fraud.

Organizations can be defrauded through collusion among bidders, between employers and contractors, and by sole procurement employees. Consequently, you need to be aware of the vulnerabilities and risks associated with fraud schemes that attack the purchasing, procurement and contract functions. Acquire the knowledge, skills and techniques you need to prevent, detect and deter these devastating frauds.

Who Should Attend: 

Controllers and corporate managers, Procurement and contract division, forensic and management accountants, accounts payable and financial analysts, Risk management and compliance officers, Internal and external auditors, Project managers and project leaders, contract managers and administrators, procurement managers and acquisition professionals, purchasing agents and company owners.

Course Objective

This training aims to assist participants to identify and deter fraud in procurement fuction. We would also like all participants to gain a preview of Fraud Risk Management Framework in deterring fraud during this 3 days training.

We Will Learn How To: 

-        Determine if a procurement scheme violates legal statutes or civil laws

-        Identify the red flags of bribery and corruption

-        Recognize bid-rigging and market-allocation schemes

-        Reduce the risk of vendor fraud

-        Develop an investigation plan to respond to suspected procurement fraud

Course Outline :

Day 1 : Contract Procurement

1.       Procurement Definitions, Principles and Goals

2.       Ethics and Accountability

3.       Advertising

4.       Sustainability

5.       Overview of Legislation / EU Directives

6.       Procurement as a Cycle

7.       Developing Specifications and Scores

8.       Total Cost of Ownership

9.       Request for Tenders

10.   Bid Evaluation

11.   After the Event – De-briefing, FOI, Remedies

Day 2 : Fraud Identification

1. Introduction to different types of fraud and procurement fraud

-        Different types of fraud that can occur in your organization

-        What is procurement fraud?

-        Why is the procurement function vulnerable to fraud?

-        Where and when can procurement fraud happen?

-        Consequences of procurement fraud

2. Different types of procurement fraud schemes

-        Bribery and corruption

-        Fraud in bidding process

-        Unjustified sole source

-        Split purchase

-        Change order abuse

-        Cost mischarging and defective pricing

-        False invoices and phantom vendors

3. Identifying procurement fraud

-        General procurement fraud red flags

-        Red flags unique to specific procurement fraud schemes

4. Preventing and detecting procurement fraud

-        Assessing the risk of procurement fraud

-        Creating an anti-fraud culture

-        Procurement fraud deterrents

-        Reducing procurement fraud risk - preventive controls and assessing their effectiveness

-        Measures to detect different types of procurement fraud

Day 3 : Overview of the fraud risk management framework

1.       List reasons why organizations should manage fraud risk

2.       Describe how the elements of a fraud risk management program

3.       Identify the oversight and reporting responsibilities between the key parties and their impact on the effectiveness of fraud risk management

4.       Identify how proactive fraud detection activities complement entity-level and process-level controls and assist management and those charged with governance

5.       Define the key elements of the control environment that relate to managing fraud risk

6.       Establishing an Anti-Fraud Culture and Ensuring Fraud Awareness and Describe the key challenges in providing fraud awareness training

7.       Responding to Discovered Fraud  and Using Automated Continuous Monitoring Tools