Than You Might Expect.
Procurement fraud is a growing global problem, and it can be extremely costly for businesses. As one of the oldest types of fraud that companies have to safeguard against, it’s no surprise that it’s going strong in emerging markets and costing businesses billions of dollars.
Companies lose billions of dollars annually because companies are not paying the fair market value for the services and goods sold by vendors. The Association of Certified Fraud Examiners (ACFE) found that companies lose 5 percent of revenue each year to fraud, which amounts to nearly $3.7 trillion globally. Much of this fraud loss can be attributed to procurement fraud.
Fraud can come in many different forms, with new techniques and exploits appearing regularly. The ingenuity and relentless effort of fraudsters should not be underestimated.
Procurement fraud can be difficult to detect because some of it is particularly subtle, which can be harder to investigate. It can be difficult to catch in businesses of all size.
- Employee/Supplier Collusion
- Conflicts of Interest
- Inflated Bills/Under-delivery
- False Statements in Obtaining Contracts
According to the Association of Certified Fraud Examiners (ACFE), there are three factors required for employees to engage in fraud:
Under financial pressure, an employee can be motivated to commit fraud. Work-related pressure/dissatisfaction is also a cause, leading an employee to “get even” if they feel underpaid or overlooked.
2. Perceived Opportunity
An employee finds an area of opportunity to commit fraud. They need to determine that they can commit the fraud, effectively conceal it, and avoid punishment. This happens when assets are easy to access/poorly accounted for, proper oversight is missing and/or a company lacks good internal controls to prevent fraud.
3. Rationalization
If an employee has a perceived need to cheat and sees a way to do it, then they might rationalize the reason to do so.
- Segregation of Duties
- Supporting Documentation
- Proper Checking and Authorization
- Physical Controls over Assets
- Familiarise With The Controls Set Out To Prevent Fraud
- Identify Key Perimeters For Auditors In Assessing The Risk Of Sub-Optimal Procurement
- Emphasize In Maintaining Financial Records And Decision Logs, In Order To Preserve The Audit Trails
- KNOW New Emergent Risks In Public and Private Sectors
- GAIN A Thorough Understanding Of The Vulnerability Of The Procurement Function To Fraudulent Activities
- EXPLORE Different Type Of Procurement Fraud That Can Occur In All Sectors
- LEARN Various Root Cause Of Different Procurement Fraud Schemes
- RECOGNISE RED FLAGS Of Procurement Fraud
- KNOW Different Effective Deterrent, Preventive, And Detective Measures To Prevent Occurrence Of Procurement Fraud
- UNDERSTAND and RECOGNISE Why And How Risk Is An Integral Part Of The Procurement Process
- DEVELOP Robust And Practical Procurement Policies And Procedures
- GAIN A Thorough Understanding Of How Strategic Policies And Governance Can Contribute Toward Procurement Effectiveness And Efficiency
- KNOW Risk Mitigation At All Stages Of A Transaction From The Initial Stage Through Supplier Selection, Contract Negotiation, And On-going Supplier Management To Contract Close Out
KNOWS YOUR BUSINESS.
Hundreds of hours of research, study, planning and fine tuning go into the production of each of our training. Our course developers have looked at your industry’s needs. This course reflects the latest findings and best practices in your field today and addresses issues up-to-the-minute. You will get tools, tips, strategies that are proven and tested against real world situations as you learn from case studies and the experience of our expert trainers. Our courses are comprehensive, in-depth, and packed with need-to-know information you can use as soon as you return to your workplace.
SYLVIA LIM
Ms. Sylvia Lim is the Founder and Managing Director of Excellence Link Associates, specialising in coaching, consulting and training on business risk management and fraud awareness.
Sylvia has worked with the Big Four accounting firms, multinational corporations and local companies in Hong Kong and Singapore.
During her career with the Big Four accounting firms, Sylvia has conducted various training programs on corporate governance, internal controls and anti-fraud to the directors of companies listed in Hong Kong. Sylvia has also been extensively involved in risk management, internal control, internal audit and Sarbanes-Oxley compliance projects in Asia Pacific.
Having managed business risks projects in a wide range of industries which include consumer products, hospitality,
manufacturing and retail in Asia Pacific for over ten years, Sylvia is able to share relevant and insightful Asia’s business risks and controls knowledge and experiences with her training participants. Her interactive training sessions are filled with group discussions and activities to enable her participants to acquire the relevant knowledge and skills for practical application at their organisations.
Sylvia is a Certified Internal Auditor of the Institute of Internal Auditors and Certified Fraud Examiner of the Association of Certified Fraud Examiners. Sylvia has also been an Associate Trainer with the Institute of Internal Auditors Singapore for over 3 years.
• Procurement Officers
• Employees tasked with
purchasing responsibilities
• Internal Auditors
• Internal Controls Officers
• Compliance, Finance, and
other professionals who are seeking to understand more about the procurement process, as well as learn about different procurement
fraud schemes and measures to deter, prevent,
or detect them
Below is part of a long list of testimonials:
“Sylvia is a very knowledgeable trainer and she gave a good analogy for better understanding. Clearly, this is an excellent course, well balance in theory and practical.”
Senior Manager, Compliance and Risk Management, Cyberview Sdn Bhd
“I have learnt ways to prevent fraud by strategically putting the control in the right place. The course outline is very structured.”
Head of Internal Audit, Suruhanjaya Syarikat Malaysia
“This training enhanced my knowledge about fraud detection and prevention in the procurement function.” Senior Executive, Group Integrity and Assurance, Chemical Company of Malaysia Berhad
