The CFEMore than just a Credential

Sixth Biennial National Fraud Awareness Conference

Transportation Infrastructure ProgramsJuly 28, 2010

Goals for This Session

The Credential

Career Impacts

Getting Certified

Post-Certification

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

Certified Fraud Examiner (CFE)CFE’s 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 dispositionGather evidenceTake StatementsWrite ReportsTestify to findings

CFE’s 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

Core Technical Knowledge of a CFE

CriminologyFinancial TransactionsFraud Investigation Legal Elements of Fraud

Other Useful Knowledge & Skills

Attention to DetailAnalysis of Large Volumes of DataBusiness FunctionComputer Systems & Applications Interview TechniquesGovernment Structure & Function

Other Useful Personal Traits

Adapts to stressful situations Critical thinkerTakes ownership and accountableHigh integrity, sound judgmentFlexibleCommunication: Oral, WrittenAble to Develop Rapport

CFE’s in the Federal Government:

Examples of What We DoFinancial Statement Analysis Efficiency assessments Regulation compliance Budget development Financial data examination Internal control assessmentsReport preparation

Who Can Become A CFE?

Academic RequirementProfessional RequirementReferences Attest to High Moral

CharacterAbide by ACFE Bylaws and Code of

Professional EthicsAssociate ACFE Member in good

standing

Recommended Path of Study

CFE Exam Prep Course ($815 / $1,268):CD-ROM study guideFraud Examiners ManualPractice Exam

Exam study discussion forumExam preparation e-NewsletterLive Coaching

CFE Exam

Exam is administered on a CD-ROM and

contains 500 questions, consisting of four parts:

Criminology and EthicsFinancial TransactionsFraud InvestigationLegal Elements of Fraud

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/falsePassing score is 75 percent on each

section

You’ve 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 CFE’s

“Great power & great responsibility” Continuing education Adherence to Code of Ethics & Professional

Standards “Do a Great Job and Make a Difference”

Maintaining your CFE CredentialRequired annual Continuing

Education:The minimum required is 20 credits

per yearAt least 10 credits directly related to

detection and deterrenceKeep records of your CE for at least

three yearsAdherence with Code of EthicsObserve Professional Standards

What Does It Mean To Be a CFE ?Professional Growth /

DevelopmentNetworking & Knowledge SharingRecognized leader in detection,

deterrence and investigation of fraud

Salary Enhancement

Getting Involved

National level membershipLocal level membership: Metro-DC

ChapterMutually exclusive; several member

categories:Certified Fraud ExaminerAssociate memberEducator Associate memberStudent Associate member

Participation at the Local Level

Quality, affordable trainingNetworking opportunitiesLeadership skills developmentMentoring potentialCommunity InvolvementCFE exam study support

Active Involvement at the Local Level

Serve on a committee or support a committeePrograms & Training Community & Membership OutreachSpeakers’ Bureau

Regular attendance at eventsSpeak on behalf of the chapterPromote the Chapter in the CommunityJoin the Board of Directors

Example ACFE Certification Q&A’s

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:

a. social causation theoryb. trait theoryc. social learning theoryd. none of the above

Example ACFE Certification Q&A’s

According to research, most embezzlers decide to commit their crimes because:

a. they are essentially dishonestb. they are living beyond their meansc. they have drug problemsd. none of the above

Example ACFE Certification Q&A’s

Given all of the following fraud prevention methods within organizations, which one is probably the most effective?

a. reducing rationalizationb. having an open-door policyc. increasing the perception of detectiond. screening employees

Example ACFE Certification Q&A’s

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. a shell company schemeb. pass-through scheme c. a receivables skimming schemed. a pay-and-return scheme

Example ACFE Certification Q&A’s

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 Actb. the Anti-Kickback Act of 1986c. the Civil False Claims Actd. the "Honest Services"

Join Us, Won’t You?Metro-DC Chapter of ACFE –

Events

Provide more than 28 CPE’s per year covering topics from FCPA, AML/Virtual Currency, to Legal Updates

Five 4 CPE Training OpportunitiesOne 8 CPE Training Opportunity

4-5 Networking EventsFind Us on Facebook & Linked InFind Us at www.acfedc.org

Questions?

Metro-DC Chapter of ACFE2121 Eisenhower Avenue, Suite 200

Alexandria, VA 22314

(888) 825-8021 (888) 868-4320 (f)

GA.Smith@acfedc.orgCheryl.Hyder@acfedc.org

Chapter@acfedc.org