Peer Review

Internal Controls to Help Deter Fraud

Material Detail page

Reviewed:: Nov 12, 2018 by Business

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Ratings

Overall Rating:

Content Quality:

Effectiveness:

Ease of Use:

Overview:

This 20:22 minute video posted on NonprofitAccountingBasics.org addresses internal controls important for nonprofit entities to implement. The discussion focuses on misappropriation of assets and in particular cash disbursement and payroll schemes Posted on October 14, 2017, this video is the first of several videos on internal control avialable.

Type of Material:

Presentation

Recommended Uses:

On campus or online class supplement to or in lieu of lecture. Homework.

Technical Requirements:

Reviewed using the Google Chrome Browser on a laptop as well as an iPad.

Identify Major Learning Goals:

To explain why not-for profit entities are vulnerable to fraud.
To identify red flags that help detect fraud
To explain the the internal controls that will deter cash disbursement fraud (billing schemes/fraudulent vendors, check tampering, and expense reimbursement schemes) and payroll fraud.

Target Student Population:

College Upper Division (Accounting Systems, NFP Accounting
Professional development for NFP Boards and Executive Directors.

Prerequisite Knowledge or Skills:

None

Content Quality

Rating:

Strengths:

Content is accurate and supported by the ACFE’s Report to the Nation. Although the 2012 RTN is referenced this content is still relevant and consistent with respect to the current RTN.
The discussion is presented clearly and concisely.
Terms are defined. Examples supplement the bullet points on the slides.
For the specific topics addressed an adequate amount of information is provided. The discussion of the importance of “tone at the top,” and how control violations at this level impact other levels is very good. Topics addressed by the presentation include: behavioral red flags, common fraud methods, and suggested internal controls for cash disbursement schemes, expense reimbursement fraud (credit cards), and payroll schemes. A Good choice of material has been included, i.e., the distinction between fraud versus error, importance of segregation of duties, caution about individuals who refuse to take vacations, and examples of workaround controls for situations where reality forces control compromises regarding particular tasks.

Concerns:

Concepts addressed are not summarized at the end of the presentation.

Potential Effectiveness as a Teaching Tool

Rating:

Strengths:

This presentation is well organized and connects theory to practice. Excellent real-world applications of controls to be implemented not commonly discussed are provided, such as the reason for purging old vendor files is a good inclusion and the importance of attention to changes made within payroll.
Concepts are introduced progressively building on prior concepts.
In just 20 minutes users should grasp the concepts presented.

Concerns:

Specific objectives or topics not introduced with an opening slide.
The presentation does not include any means for measuring user learning.

Ease of Use for Both Students and Faculty

Rating:

Strengths:

The presentation is professional prepared and delivered.
The presenter’s tone is pleasant and the examples provided add an element of engagement. The presentation is paced well.
Visual appeal is adequate. The image of the fraud triangle is nice.

Concerns:

Minor errors exist in the closed captioning, including a lack of punctuation. Overall the captioning is acceptable, but a few items throughout are off (bender instead of vendor).
The video is the recording of a speaker referencing text based slides. The slides lack graphics (only one image used), or graphics to enhance engement.
No means of interactivity included.

Other Issues and Comments:: While the video references the 2012 ACFE, that report is published every two years. Citing the 2012 report, makes the material possibly appear “dated.” However, the most recent ACFE reports support the points being made in the video.
Creative Commons: