The CFE More than just a Credential

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The CFEMore than just a Credential

• Sixth Biennial National Fraud Awareness
  Conference
• Transportation Infrastructure Programs
• July 28, 2010

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Goals for This Session

• The Credential
• Career Impacts
• Getting Certified
• Post-Certification

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Association of Certified Fraud Examiners

• Association of Certified Fraud Examiners formed,
  in part, by Joseph T. Wells, CFE, CPA in 1988
• Wells Vision Like-minded professionals who
  collaborate and work toward a common goal
• ACFE Goal Reduce WCC instances of fraud
• Worldwide provider of anti-fraud training
• Multi-disciplinary, globally recognized
  professional designation

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Certified Fraud Examiner (CFE)

• CFEs posses expertise in all aspects of the
  anti-fraud profession and have the proven ability
  to detect, prevent, and investigate a wide range
  of fraud.
• A CFE might perform any of the following
  functions
• Resolve allegations of fraud from inception to
  disposition
• Gather evidence
• Take Statements
• Write Reports
• Testify to findings

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CFEs are Found in Many Fields

• Jobs
• Law Enforcement
• Accountants
• Auditors (internal and external)
• Investigators
• Loss Prevention Specialists
• Where
• CPA firms
• Consulting Firms
• Government Agencies
• Law Firms
• College and University Scholars
• Others Interested in Anti-Fraud Efforts

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Core Technical Knowledge of a CFE

• Criminology
• Financial Transactions
• Fraud Investigation
• Legal Elements of Fraud

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Other Useful Knowledge Skills

• Attention to Detail
• Analysis of Large Volumes of Data
• Business Function
• Computer Systems Applications
• Interview Techniques
• Government Structure Function

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Other Useful Personal Traits

• Adapts to stressful situations
• Critical thinker
• Takes ownership and accountable
• High integrity, sound judgment
• Flexible
• Communication Oral, Written
• Able to Develop Rapport

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CFEs in the Federal GovernmentExamples of What
We Do

• Financial Statement Analysis
• Efficiency assessments
• Regulation compliance
• Budget development
• Financial data examination
• Internal control assessments
• Report preparation

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Who Can Become A CFE?

• Academic Requirement
• Professional Requirement
• References Attest to High Moral Character
• Abide by ACFE Bylaws and Code of Professional
  Ethics
• Associate ACFE Member in good standing

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Recommended Path of Study

• CFE Exam Prep Course (815 / 1,268)
• CD-ROM study guide
• Fraud Examiners Manual
• Practice Exam
• Exam study discussion forum
• Exam preparation e-Newsletter
• Live Coaching

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CFE Exam

• Exam is administered on a CD-ROM and
• contains 500 questions, consisting of four parts
• Criminology and Ethics
• Financial Transactions
• Fraud Investigation
• Legal Elements of Fraud

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CFE Exam

• Each section has 125 questions which must be
  completed in the 2.5 hours allotted
• Each question has a maximum time limit of 75
  seconds
• Test is multiple choice and true/false
• Passing score is 75 percent on each section

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Youve passed!! Now what?

• Having a CFE credential does not make you a CFE,
  it enables you to become a CFE
• Increase your vigilance
• The bar is raised
• Apply what you learn formally and informally
• Give back to your profession
• Mentoring new CFEs
• Great power great responsibility
• Continuing education
• Adherence to Code of Ethics Professional
  Standards
• Do a Great Job and Make a Difference

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Maintaining your CFE Credential

• Required annual Continuing Education
• The minimum required is 20 credits per year
• At least 10 credits directly related to detection
  and deterrence
• Keep records of your CE for at least three years
• Adherence with Code of Ethics
• Observe Professional Standards

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What Does It Mean To Be a CFE ?

• Professional Growth / Development
• Networking Knowledge Sharing
• Recognized leader in detection, deterrence and
  investigation of fraud
• Salary Enhancement

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Getting Involved

• National level membership
• Local level membership Metro-DC Chapter
• Mutually exclusive several member categories
• Certified Fraud Examiner
• Associate member
• Educator Associate member
• Student Associate member

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Participation at the Local Level

• Quality, affordable training
• Networking opportunities
• Leadership skills development
• Mentoring potential
• Community Involvement
• CFE exam study support

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Active Involvement at the Local Level

• Serve on a committee or support a committee
• Programs Training
• Community Membership Outreach
• Speakers Bureau
• Regular attendance at events
• Speak on behalf of the chapter
• Promote the Chapter in the Community
• Join the Board of Directors

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Example ACFE Certification QAs

• Blue, a fraud offender, had no known history of
  criminality. One theory of crime causation
  suggests that people are not inherently bad, but
  rather are taught to commit crime through life's
  experiences. This is called the
• social causation theory?b. trait theory?c.
  social learning theory?d. none of the above

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Example ACFE Certification QAs

• According to research, most embezzlers decide to
  commit their crimes because
• they are essentially dishonest
• they are living beyond their means
• they have drug problems
• none of the above

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Example ACFE Certification QAs

• Given all of the following fraud prevention
  methods within organizations, which one is
  probably the most effective?
• reducing rationalization
• having an open-door policy
• increasing the perception of detection
• screening employees

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Example ACFE Certification QAs

• White, an employee of ABC Corporation,
  intentionally issued two payments for the same
  invoice. After the disbursements had been mailed,
  White called the vendor and explained that a
  double payment had been made by mistake. She
  asked the vendor to return one of the checks to
  her attention. When the vendor returned the
  check, White took it and cashed it. According to
  Occupational Fraud and Abuse, this is an example
  of
• a shell company scheme
• pass-through scheme
• a receivables skimming scheme
• a pay-and-return scheme

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Example ACFE Certification QAs

• The statute that specifically outlaws the giving
  or receiving of anything of value for the purpose
  of improperly obtaining or receiving favorable
  treatment in connection with U.S. government
  contracts is
• a. the Foreign Corrupt Practices Act
• b. the Anti-Kickback Act of 1986
• c. the Civil False Claims Act
• d. the "Honest Services"

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Join Us, Wont You? Metro-DC Chapter of ACFE
Events

• Provide more than 28 CPEs per year covering
  topics from FCPA, AML/Virtual Currency, to Legal
  Updates
• Five 4 CPE Training Opportunities
• One 8 CPE Training Opportunity
• 4-5 Networking Events
• Find Us on Facebook Linked In
• Find Us at www.acfedc.org

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Questions?

• Metro-DC Chapter of ACFE
• 2121 Eisenhower Avenue, Suite 200
• Alexandria, VA 22314
• [phone]
• [phone] (f)
• GA.Smith_at_acfedc.org
• Cheryl.Hyder_at_acfedc.org
• Chapter_at_acfedc.org