Instructor for this course
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Fraud can happen to anyone. We would like to think that in a small entity where there is closer management interest, fraud wouldn’t happen. In a not-for-profit entity, we would hope that their charitable mission would mitigate some instance of fraud.  In governmental entities, many would believe there are well established controls and checks and balances to keep fraud from occurring.
 
In reality, smaller entities, not-for-profit entities and governmental entities all have unique characteristics that make them susceptible to inappropriate activity or fraud. These characteristics pose intriguing questions that we will explore within this segment.
 
As with any entity, understanding components of the fraud triangle are important to discovering the areas at-risk in your organization.  The fraud triangle depicts three elements that are characteristics of the white-collar fraudster.  Those include pressure, opportunity and rationalization.  In a not-for-profit, governmental or small entity; these components may have a more unique or personal attribute to them.  To mitigate inappropriate activity, you must be able to put yourself in the shoes of the individual who would perpetrate the fraud and ask “Why”.
 
In this course we explore many facets that make fraud in a not-for-profit, governmental or small business unique from their for-profit counterparts.  We examine the basic characteristics of each of these entities, and then dissect the fraud triangle and examine what unique forces may be at play for these organizations.  We also examine some of the highest risk fraud areas for these organizations and discuss some control alternatives to consider when establishing your fraud fighting processes.

Learning Objectives

  • Explore unique characteristics in the not-for-profit, small entity or governmental entities.
  • Explore unique components of the fraud triangle related to not-for-profit, small entities or governmental entities.
  • Identify the highest risk fraud areas in a not-for-profit, small entity or governmental entity.
  • Identify relevant controls related to high risk fraud areas.
Last updated/reviewed: November 25, 2019

2 Reviews (14 ratings)Reviews

4
Anonymous Author
Explains the unique characteristics that make not-for-profit entities and governmental entities susceptible to inappropriate activity or fraud. Good explanation of the highest risk fraud areas for such entities. Nice examples of control alternatives that can be put into place at such entities to fight fraud.
5
Anonymous Author
This was a helpful course for someone who volunteers with a small church group to understand what fraud issues might arise for small entities and what can be done to mitigate the risk.

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required 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 .
Course Syllabus
INTRODUCTION AND OVERVIEW
  6:01Introduction to Fraud in NFP, Governmental and Small Entities
  5:54NFP Characteristics
  6:43Small Entity Characteristics
  7:16Governmental Characteristics
  15:05Fraud Triangle
  17:07Opportunity
  10:53Rationalization
  10:27High Risk Fraud Areas
  6:00Revenue Recognition
  13:15Asset Misappropriation / Procurement
  6:40Management Activity
CONTINUOUS PLAY
  1:45:23Fraud in NFP, Governmental and Small Entities Full Video
SUPPORTING MATERIALS
  PDFSlides: Fraud in NFP, Governmental, and Small Entities
  PDFFraud in NFP, Governmental, and Small Entities Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM