Vendor fraud presents a serious risk to nearly every organization. In the ACFE’s 2014 Report to the Nations on Occupational Fraud and Abuse
, corruption and billing schemes—the two frauds most typically involving vendors—accounted for some of the highest median fraud losses, with billing schemes resulting in a median loss of $100,000, and corruption schemes causing a median loss of $200,000.
Auditing for Vendor Fraud
will help you to understand what measures can be taken to minimize this risk and prevent and detect vendor fraud. This course examines why vendor audits should be conducted and discusses the importance of right-to-audit clauses in vendor contracts. Examples of vendor fraud schemes both internal and external to an organization are also explored. In addition, the process for conducting vendor audits is outlined including preparing for the audit, gathering data, performing audit tests and executing post-audit activities.
You will learn how to:
Assess the need for vendor fraud audits
Identify the risks that can result from working with vendors
Explain the importance of effective right-to-audit clauses in vendor contracts
Identify vendor fraud schemes and related red flags
Describe the process by which to conduct effective vendor audits
Field of study: Auditing
Last updated: May 2014
ACFE Ordering and Return Policy
Please note: To be eligible for CPE credit, you must complete the final exam within one year of purchase date. You may only claim CPE credit for a course once.
Table of Contents:
Part I: Vendor Fraud
Lesson 1: Why Conduct Vendor Fraud Audits?
Lesson 2: Understanding Vendor Risks
Lesson 3: Types of Vendor Contracts
Lesson 4: Effective Contract Language
Lesson 5: Right-to-Audit Clauses
Lesson 6: Internal and External Vendor Audits
Lesson 7: Vendor Fraud Schemes Involving Internal Staff
Lesson 8: Other Vendor Fraud Schemes
Part II: Selecting Vendors
Lesson 9: Common Vendor Selection Techniques
Lesson 10: Other Vendor Selection Techniques
Part III: Conducting the Vendor Audit
Lesson 11: Obtaining Pre-Audit Support
Lesson 12: Notifying the Vendor
Lesson 13: Preparing for the Vendor Fraud Audit
Lesson 14: Understanding the Process, Data, and Players
Lesson 15: Requesting Access to Vendor Data
Lesson 16: Gathering Vendor Data
Lesson 17: Testing and Analyzing the Data
Lesson 18: Red Flags in a Vendor Audit
Lesson 19: Reporting Findings
Lesson 20: Management’s Response to Audit Findings
Lesson 21: Recovering Funds
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