2 CPE The Association of Certified Fraud Examiners (ACFE) has developed a fraud tree which categorizes types of fraud schemes into the following three primary areas:
- Corruption
- Asset Misappropriation
- Financial Statement (FS) Fraud
Previous courses have addressed corruption and asset misappropriation related to fraudulent disbursements and financial statement fraud. This course addresses asset misappropriation – specifically related to inventory and other assets.
To identify how fraud can be mitigated, individuals must understand the types of fraud most prevalent to their business. Asset misappropriation is a scheme in which an employee steals or misuses the employing organization’s resources. Considering inventory and other assets, there are multiple methods in which fraud can occur. These extend through the raw materials, work in process, and final goods stages. It can relate to employee theft, vendor fraud or accounting irregularities. This session will focus on the many methods involved in inventory fraud.
Note: Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.
Learning Objectives
- Explore the penalties for asset misappropriation.
- Recognize the definitions of inventory and other assets.
- Identify types of inventory fraud and relevant red flags within the raw materials and Work in Process (WIP) categories.
- Explore the concept and relevant red flags for misstating inventory value.
- Explore the concepts and red flags of accounting inventory type frauds.
- Identify prevention methods for inventory fraud.
- Explore the concept and relevant red flags for “other assets” fraud.
Last updated/reviewed: August 13, 2023
Included In Certifications
This course is included in the following Certification Programs:
11 CoursesBusiness Fraud Identification and Prevention Certification
- Introduction to Forensic Accounting
- The Fraud Triangle
- Fraud: Focus on Corruption
- Fraud: Focus on Fraudulent Disbursements
- Fraud: Focus on Cash And Assets
- Fraud: Focus on Inventory
- Fraud: Focus on Financial Statement Fraud – Part One
- Fraud: Focus on Financial Statement Fraud – Part Two
- Fraud and COSO 2013
- Top Occupation Fraud Schemes - ACFE Report to the Nations
- Fraud Risk Assessments
42 Reviews (156 ratings)
Reviews
Anonymous
(Senior Auditor)
Another excellent overview. Particularly, the aspect of misstatements of inventory balances (either direction) for differing end-goals. The touching on fraud within the WIP cycle (including for Labor/Overhead) are underappreciated in many contexts (such as government-purchasing or review of government contractors, etc.).
Lawrence Hirsch
(Controller at Builders design)
Aside from CASH, Inventory seems like the most vulnerable asset subject to fraud. The volume of transactions make it difficult to measure and control. Lynn does a nice job of leading us through the challenges with Inventory fraud.
Another GREAT Lynn Fountain course.
Thank you, Lynn
Larry
Wendy Cox
(Inventory Accounting Manager at Harry and David)
The course did a great job of highlighting the potential areas of fraud in the inventory area. This course is a great jumping off point to delve deeper into fraud and internal controls around inventory.
Jacqueline Westmoreland
(Internal Review Specialist at FDIC)
This course provides valuable information and tools in understanding how fraud could occur with inventory and other assets, in addition to ways to help prevent or minimize losses. Great course!
Anonymous
(Internal Audit)
Working at a company with inventory means this is always a risk that needs to be understood. As it stands right now, we are looking into multiple frauds within our different subsidiaries.
Anonymous
()
the inventory is main and important account on all the balance sheet in all the business and the course provide a lot of good information to detect and prevent fraud of the inventory.
Lisa Marie Harrington
( at City of Richardson)
As a Capital Assets Accountant, I thoroughly enjoyed the segment related to Materials and Work in Progress (WIP). Instructor was clear, and documentation provided was effective.
Anonymous
(Assurance Specialist)
Good review on types of inventory fraud, misstating inventory balances and fraud prevention. The instructor does a good job in explaining and providing examples.
Anonymous
(Accounting Manager)
The course is very informative and structured. It provides detailed situational samples such as red flags and methkds on how to prevent and manage fraud.
Anonymous
(SFA)
Another great course from Lynn, who is in my opinion, one of the best instructors here. Multiple real life examples make this course of a high value.
Anonymous
(Head of Internal Audit)
A very important topic for internal auditors and top management. Should be advertised and preventive measures implemented implemented as presented.
Anonymous
()
The course presents very useful information on fraud related to inventory and other assets in a very interesting and easy to understand manner.
Anonymous
(CPA, CFE, CGMA)
I like this course so much I just wish there were more fraud courses delivered in this modular video formats for my CFE requirement of CPE.
Paige Jones
(Owner at AHF Consultants)
this was a good review and reminder to pay close attention to inventories of clients and employers. The material was clear and concise.
Anonymous
(Internal Audit Manager)
Good overall course with some very solid points. Very helpful when trying to get some ideas to build out an audit plan in this area.
Elizabeth Martin
( at Self)
Good discussion on inventory fraud especially for manufacturing and retail. Also some extra coverage about non-inventory assets.
Cynthia Hernandez
( at none)
Another good course from Lynn Fountain. She's very consistent at providing well-organized and informative presentations.
Ara Toroyan
(Director - Financial Planning & Proc.. at NCCI Holdings, Inc.)
After viewing all of Lynn's courses i have a good understanding of fraud schemes and controls to mitigate the risk.
Anonymous
(Auditor)
Excellent course on fraud. Rally liked the discussion on prevention methods companies can implement to stop fraud.
Anonymous
(Accountant)
Lynn Fountain never disappoints. The course Fraud: Focus on Inventory is thorough, interesting and informative.
Anonymous
(-)
Another great course from Lynn Fountain. Full of examples and real. Life scenarios. Thanks for the course!
Anonymous
()
The course is very informative and structured. It provided a good overview of frauds related to inventory. .
Justin Arthur
(Accounts Payable Specialist at Charter Communications)
An excellent coverage of inventory-related fraud that can be applied across a wide range of industries.
Anonymous
(CPA)
Good principles for fraud awareness. Useful information on red flags that should be investigated.
Mark Zaepfel
(Senior Auditor at CBP - Customs & Border Protectio..)
Good course. I think this was the last of the these fraud type courses that are/were related.
Tracey Fischer
(Senior Internal Auditor at Self)
Good basic introduction to inventory fraud with a lot of possibilities and scenarios provided.
Anonymous
(IT Advisory Snr. Associate)
Interesting and refresher course on fraud inventory. Everyone will benefit from this training.
Joshua Thomas
(Senior Auditor at CBP DHS GOV)
Class was very informative. Great points mentioned as pertained to inventory! Would recommend.
Anonymous
(System Procedure Analyst)
I like the fact that it describes that anyone can commit different ways of inventory frauds
Jeremy Thompson
(Operations Associate at CNM LLP)
great class learned a lot on how to handle inventory and how to be even more transparent.
Anonymous
(Consultant - Process Specialist)
The speaker provides great examples on different inventory fraud and how to prevent it.
Anonymous
(Systems and Procedures Analyst)
This course was beneficial, because of how critical fraud has become in the work place.
Anonymous
(Internal controls manager)
This was great course to understand and identify fraud schemes relating to inventory.
Sophia Kasozi
(- at City of Edmonton)
Nice refresher on the importance of managing fraud risks in the inventory account.
Anonymous
()
This course provides a good understanding of the methodology of inventory fraud.
Steven Whitehead
( at Neighborhood Health Plan)
Great job on a relevant topic. Good course for retail related teams.
Alexandre MAYER
(Internal Control Officer at N/A)
very good content and excellent lecturer. I recommend this course.
Theodore Zeck
(Certified Public Accountant at Theodore R. Zeck, CPA)
Interesting course, particularly if you like the Balance Sheet.
Manuel Sabat
( at Morgan Advanced Materials)
Good information about red flags and schemes within inventory.
Chris Grimes
(Rules Master at Cisco)
Good discussion on inventory fraud and what to look out for.
Martin Smith
(owner at M. Ward Smith, Inc.)
you should show people what they got wrong in the exam.
Anonymous
(SURVEILLANCE LEADER)
very informative.good aspects explained on inventory
Prerequisites
Course Complexity: Intermediate
No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.
Education Provider Information
Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA
95113
Contact:
For more information regarding this course, including complaint and
cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to
.
Lynn FountainCPA, CGMA, CRMA, MBA, Consultant, Author, Trainer
About Illumeo
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