Managing Procurement, Fraud Risk and Internal Controls

Procurement fraud can occur through departmental purchasing of goods and services, as well as through contractual arrangements with external service providers. It can come in many ways.

Fraud within the procurement life cycle is high risk and can result in recurring losses. You may be at risk due to fraudulent activities conducted by internal staff, collusion between internal staff and external service providers or external service provider and/or industry collusion.

Join us in this training program to acquire the knowledge, skills and techniques you need to deter, prevent and detect this devastating type of fraud.

Who Should Attend?

• Internal auditors
• Internal controls officers
• Financial auditors
• Procurement officers
• Compliance, finance and other operations professionals who are seeking to understand more about the procurement process, as well as learn about different procurement fraud schemes and the measures to deter, prevent or detect them.

Course Description:   

Learning Outcomes

What you will gain from this seminar:

• Gain a thorough understanding of the vulnerability of the procurement function to fraudulent activities
• Explore different kinds of procurement fraud that can occur in a typical organisation
• Identify the various root causes of different procurement fraud schemes
• Recognize the red flags of procurement fraud
• Design different effective deterrent, preventive and detective measures to help reduce the occurrence of procurement fraud

Course Outline

• Introduction to different types of fraud and procurement fraud
• Different types of fraud that can occur in your organisation
• What is procurement fraud?
• Why is the procurement function vulnerable to fraud?
• Where and when can procurement fraud happen?
• Consequences of procurement fraud

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

Root Causes and Red Flags of Procurement Fraud

• Root causes of procurement fraud
• General procurement fraud red flags
• Red flags unique to specific procurement fraud schemes

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
• Case studies discussion