Manipulation And Falsification Of Financial Statements (2)

Sound Corporate Governance series Understanding auditors’ responsibility in

MANIPULATION AND FALSIFICATION OF FINANCIAL STATEMENTS 4th – 5th May 2009, InterContinental Hotel, Manila, Philippines

Your opportunity to hear... Tommy SEAH and Stanley CHIA World Class trainers for practicing auditors Course Objectives - An excellent opportunity to learn how best to protect your organization and step up on controls to prevent fraud in financial statements. - To impart a detailed understanding of forensic accounting with particular emphasis on the methodologies of financial statement fraud. - To demonstrate the various aspects of fraud; i.e. fraudulent financial reporting identifying fraud schemes, including computer fraud and methods of concealment, as was the analytical techniques in uncovering fraud and its prevention through effective internal control systems. - Analyse the general technique used in working in litigation support services.

Course Description If you are reading this, this course is for you. It is not just for accountants and auditors . It is for anyone and everyone who is interested in the manipulation and falsification of Financial Statements. The course is of particular interest to the accounting profession, the world of finance and to business in general. Fraud in Financial Statements is found in almost all countries. Asian countries and in particular Singapore, China, Philippines and Malaysia are not exempted from such an economic malady. Studies have shown that financial statement misstatements have occurred at both large and small companies, at times causing a huge impact on the bottom line and the share price. Financial statement fraud causes a decrease in the market value of a stock of approximately 500 to 1,000 times the amount of the fraud. The latest is of course the infamous SATYAM case. Numerous examples of financial statement fraud and alleged

auditor negligence have been disclosed over the past few years - WorldCom/Arthur Andersen, Xerox/KPMG, Enron/Arthur Andersen, Adelphia Communications / Deloitte & Touche, Baptist Foundation of Arizona/Arthur Andersen, just to name a few. Most responsible and diligent manager's major concerns would be financial loss, damage to reputation and brand, and the effect on employee morale. Satyam is a good example how things badly things could go wrong. The course content has also become of critical interest to regulators and lawmakers because of the notoriety of a series of recent financial scandals that have affected the entire business community. The course will also review the new institutional structures that have been put in place recently by lawmakers and the accounting profession to deal with fraud and its prevention, i.e., the Sarbanes-Oxley Act and self-regulating measures adopted by the accounting profession.

Recognizing the challenges that organizations are facing in combating Financial Statement Fraud, the event organiser is pleased to present this 2- day workshop on Manipulation and Falsification of Financial Statements

Understanding auditors’ responsibility in MANIPULATION

AND FALSIFICATION OF FINANCIAL STATEMENTS

DAY ONE

DAY TWO

UNDERSTANDING FINANCIAL STATEMENT

THE ANATOMY STATEMENT FRAUD

• Financial Statement • Key Elements of Financial Statements • Financial Statement Manipulation • Why do senior management falsify the books? • Errors vs. Irregularities • Lessons Learned, a Case Study: Analysis of a Famous Case THE FRAUD TRIANGLE - THE THREE FACTORS PRESENT IN ORGANISATION THAT ALLOW FRAUD TO OCCUR Understanding FRAUD • Incentive/Pressure • Opportunities • Attitudes/Rationalization • Profiles of a Financial Statement Fraudster EVALUATING THE EXISTENCE OF FRAUD • Identifying Your Exposure to Financial Statement Fraud • Evaluate the Existence of Fraud Risk Factors Using SEATA™ Risk Assessment Methodology • Looking for Financial Fraud Schemes Within Your Organisation

OF

FINANCIAL

• Utilize Aggressive Reserves • Delay/alter Expense Recognition • Accelerate Revenue Recognition • Exploit Acquisition Reserves • Make Unsupportable Entries • Fabricate Additional Revenues ANALYSIS OF COMMON EXAMPLES AND HOW TO POTENTIAL WARNING SIGNS

FRAUD DETECT

• “Refreshed” Receivables • Misstatement Of Expenses • Sales of Development Stage Products • Management Disclosure & Analysis Fraud • Channel Stuffing • Misdated Transactions • Misstatement Of Asset Value & Liabilities • Money Laundering • Moving Inventory Between Locations • Fraudulent Audit Confirmations • Off Balance Sheet Liabilities • Improper Revenue Recognition

Note: This session will enable participant especially Directors and Non- Financial Senior Executives to better understand the basic accounting principles in financial statements. You will learn to recognize the information financial statements convey and how to interpret and act upon the information when reviewing financial statements.

Endorsed by

Jointly Organized by CFE International Consultancy Group Private Limited

CFE Strategic Alliances Certified System Investigator CSI World Headquarters, Singapore

Understanding auditors’ responsibility in MANIPULATION

AND FALSIFICATION OF FINANCIAL STATEMENTS Tommy is the only Singaporean that has made a name for himself in America’s largest and world renowned Anti-Fraud Association. In 2006, he was elected by his peers in more than 100 countries to be the Vice Chairman of The Association of Certified Fraud Examiners Board of Regents based in Texas, USA. CFE is a post graduate professional qualification recognized by the FBI and USA Central Intelligence Agency in it’s recruitment of auditors for combating fraud. He is also the Chairperson of CSI World Headquarters. CSI is the only Digital Forensic Certification body that operates in Asia. A number of auditors in the United Nations and government services proudly carry the CSI designation with distinction.

Tommy Seah FCPA, Regent Emeritus, ACFE (Texas, USA) Chairperson, CSI World Headquarters

His services in providing anti fraud and technical product training is much sought after by numerous multinational companies, banks and governments in the region, including Germany, Singapore, Malaysia, China, Indonesia, Philippines and Taiwan. Tommy's previous work experience includes systems based auditing in an American International Bank, where he was the Senior Regional Auditor responsible for the Bank's audit in the Asia Pacific region. He has also held the top executive position of Chief of Internal Audit in a prime offshore bank where his audit duties cover the Singapore and Hong Kong operations of the bank. He covers all areas of the bank's audit of operations and IT systems. He also has practical working experience in the Operations Department of a foreign bank. Of late, Tommy has very successfully trained Anti-Narcotics Police Officers from most of the ASEAN countries. In 2008, he was awarded the privilege to train the highly skilled and intellectually superior officers from the Competition Commission of Singapore. Tommy Seah is also a prolific writer. He is the author of seven banking books including the F.I.G. Program. The FIG is the authoritative and definitive text on Financial Instruments designed to be used in the worldwide banking industry for product training. This publication has received excellent review and first class commendation from some of the most authoritative professional certification body and top rated banks in the world. The other six authoritative texts used in his training are The Foreign exchange Audit, The Control of Money Market Activities in Banks, Financial Management, MCA for Banks, SWAPS in Investment Banking and Anti-Money Laundering 101. His latest publication attempt is on Profiling and Interviewing Techniques. He has set for himself the goal to be the first Asian to write the first book in “Technology Fraud for the Banking Industry”. Stanley is both the Director & Principal Consultant of CFE Strategic Alliances, the training arm of CFE-In-Practice group of companies and also the Managing Director of CFE International Consulting Group Pte Ltd, a think-tank company that provides multiconsultancy solutions to companies worldwide. He specializes in investigative interviewing & profiling techniques and has handled numerous cases for both local and foreign financial institutions.

Stanley Chia CFE, ACFE (Texas, USA) CAMS, ACAMS CSI, CSI World Headquarters

Stanley is also the current Honorary Director, Research & Publication of CSI World Headquarters, an international accreditation body for Digital Forensic. Stanley has worked for large financial institutions like AIA Insurance, Singapore Exchange and United Overseas Bank where he was involved in anti-money laundering, compliance, enforcement and fraud investigation work. To date, he has investigated more than 100 fraud and compliance-related cases and some of them involved over US$1M. He is well versed in financial products knowledge, fraud examination techniques and compliance methodologies. Stanley is often invited to speak at conferences and seminars in Singapore, Malaysia, Hong Kong and Shanghai where he taught fraud investigation, investigative interviewing techniques profiling techniques and internal control. He has also co-authored a series of pocketsized guide books for auditors published by CSI World Headquarters. He is currently writing a book on Interviewing & profiling techniques – ISBN 978-981-08-0599-9.

REGISTRATION FORM Understanding auditors’ responsibility in MANIPULATION

AND FALSIFICATION OF FINANCIAL STATEMENTS

4th – 5th May 2009, InterContinental Hotel, Manila, Philippines Course Fees Category

Discount

Early Bird **

5%

Corporate (3 or more pax)

5%

ACSI (Associate)

10%

CSI (Certified)

15%

* Does not include hotel accommodation. ** Early Bird Discount ends 20th March 2009. PARTICIPANT DETAILS NAME: Dr/ Mr/ Mrs/ Ms

COMPANY DESIGNATION:

1 day only: SGD 600 (companies based in the Philippines) SGD 700 (companies not based in the Philippines) 2 days: SGD 1100 (companies based in the Philippines) SGD 1300 (companies not based in the Philippines) PAYMENT METHODS By Cheque: Please cross cheque made payable to CFE International Consultancy Group Pte Ltd and mail your payment together with this registration form to the company address stated below in the “How to Register” box below. Telegraphic Transfer: • Singapore & Other Delegates—

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CFE International Consultancy Group Private Limited

IMPORTANT NOTICE Payments are required with registration and must be received prior to the Coaching Session to guarantee your place. Walk-in delegates will only be admitted on the basis of space availability at the Coaching Session and with immediate full payment. CANCELLATIONS & TRANSFERS If you are unable to attend, a substitute delegate is welcome at no extra charge. Please provide the name and the title of the substitute delegate at least 2 days prior to the program. A refund less 10% administrative charge will be made for cancellation received in writing 10 working days before the program date. A complete set of program documentation and a 50% refund will be given for cancellation made 3 working days before the program date. Regrettably, no refund can be made for cancellation made on and/or after the program. A complete set of documentation will however be posted to you. The organizer reserves the right to make any amendments and/or changes to the program, venue, speaker replacements and/or topics if warranted by circumstances beyond its control. DISCLAIMER Due to the interactive nature of the learning session, the sequence and contents of the program may be vary according to the needs of the participants. The speaker reserves the right and the privilege to conduct the program in the manner which he thinks to be in the best interest of the majority of the participants. Please ensure that you understand this completely so as to prevent any form of unrealistic expectation and or disappointment in a public enrolment program that was not tailored to your specific need. Please inform the organizer in advance if you are not agreeable or do not completely understand the above term and we will cancel your enrolment accordingly.