Trainer’s Guide 1

TG 04a: Reactive Guide

Lesson Facilitation

Brief
Slide 1 Fraud Investigation

In this slide we provide the definition of what is a fraud investigation. We want

to point out at this portion of the discussion that the procedures being
conducted here are the responsibility of the FAIO or by the SAT. Also, we must
distinguish the difference between the Fraud Audit against Fraud
Investigation/Forensic Audit, which is the objectives of the two. In fraud audit,
we try to identify if fraud might have been committed (or looking for signs of
red flags), while in Fraud Investigation/Forensic Audit, we now gather evidence
to prove the crime of fraud.

Slide 2 Fraud Investigation Procedures

Show the diagram on the summary of fraud investigation procedures that is

found in the FoAM.

Slide 3 Fraud Investigation sub-procedures for Planning

In slide 3, show the diagram on the sub-process on how we plan our

investigation. It is important to note that usually, the work program that we
prepare is a living work program, which means that we don’t usually stick to the
work program that we prepared earlier but we constantly change our work
program depending on the roadblocks that we may encounter. It is always
important to note that we always focus on the objectives of the case and when
there are roadblocks in the gathering of evidence we must always be prepared
to look for other avenues to get to our goals.

Slides 4 Assessment of Initial Facts

Explain the procedures that we do when we assess the initial facts of the case.
These are enumerated in the slide but you may also add up to it depending on
your experience.

Slide 5 Assembly of Special Audit Team

Slide 5 focuses on the assembly of a Special Audit Team that will handle the
case, for the Head Office (NCR) it is the FAIO that creates the SAT, while in the
Regional offices, it is the Regional Director that creates the SAT. When creating
the SAT the main consideration is the proper balance of the skills and
competencies of the SAT members. It is also suggested that a lawyer be part of
the SAT.
 Trainer’s Guide 2
TG 04a: Reactive Guide

Slide 6 Assembly of SAT

In slide 6, we show to the participants the possible combination of team

members of the SAT. The members may come from different audit sector of
COA, but the important thing to remind the participants is that the mixture of
skills and competencies must be able to match the needs and objectives of the
fraud case.

Slide 7 Develop Investigation Work Plan

In slide 7, we show the importance of the work plan and proper preparation of a
work plan. When we prepare our work plan, we must bear in mind some factors
needed in order to have a successful investigation. Some of these elements are
proper composition of team members, time and budget of the investigation,
and preparation of the proper fraud case theory. See the Fraud Case Theory
definition in the FoAM.

Slide 7 – 9 Fraud Investigation Work Program

In preparing the work program, the audit team must bear in mind the fraud
audit objective (fraud case theory) and the fraud procedures to be conducted.
Also when preparing the work program, we should know the tools that will be
needed in completing the investigation (such tool would be CAATs and other
audit software).

Another thing to bear in mind is that the work plan of a fraud investigation is a
living document, but the changes that we implement in the work program must
focus on the objective of the investigation, and we only change it when there
are roadblocks encountered.

Slides 8 and 9 provide data analysis procedures that we may conduct in looking
for possible evidence in a fraud case.

Slide 10 Sample Evidence Matrix

In Slide10 we are introducing a new template that the SAT will be using in
documenting the evidence. Please take time explaining to the participants the
columns of the template.