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Author: |
Peter Ilas, FCCA, Finance Transformation Expert, Author, and Strategic Advisor |
Course Length: |
Pages: 48 ||| Word Count: 16,559 ||| Review Questions: 8 ||| Final Exam Questions: 13 |
CPE Credits: |
2.5 |
IRS Credits: |
0 |
Price: |
$22.45 |
Passing Score: |
70% |
Course Type: |
Text |
Technical Designation: |
Technical |
Field Of Study: |
Accounting |
Approved Audience: |
NASBA QAS - NASBA Registry |
Key Takeaways: |
This course equips finance professionals with tools to detect, prevent, and combat accounts payable invoice fraud and vendor manipulation schemes.
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Frequently Asked Questions: |
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Description: |
AP invoice or billing fraud is among the most common and expensive types of occupational fraud worldwide. According to the Association of Certified Fraud Examiners (ACFE), organizations lose approximately 5% of their revenue to fraud annually, with billing schemes accounting for roughly 22% of these cases globally! AP fraud schemes typically last a long time—often 18 months before detection—and over half of them cause losses exceeding $100,000. This comprehensive course equips finance professionals with essential skills to detect, prevent, and combat accounts payable and vendor manipulation fraud. You'll master the critical aspects of AP fraud prevention through practical, real-world scenarios that blend theoretical knowledge with actionable strategies. Through this focused training program, you'll learn to:
The course provides downloadable AP Fraud and Vendor Manipulation Red-Flag Cards that serve as quick reference guides for identifying the most common fraud indicators. Whether you're an AP or procurement specialist, accounting manager, controller, auditor, or finance professional, this course will sharpen your "fraud lens" and equip you with practical tools to protect your organization from costly AP fraud schemes and vendor manipulation. |
Usage Rank: |
55455 |
Release: |
2025 |
Version: |
1.0 |
Prerequisites: |
None. |
Experience Level: |
Overview |
Additional Contents: |
Complete, no additional material needed. |
Additional Links: |
Internal: Fraud Lens for Accountants - Expenses, Payroll, Cash and Tax
Internal: Common Invoice Problems - How to Deal with Them
External: Employers Should Choose Their Third-Party Payroll Service Provider Wisely to Prevent Fraud
External: Form W-2/SSN Data Theft - Information for Businesses and Payroll Service Providers
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Advance Preparation: |
None. |
Delivery Method: |
QAS Self Study |
Intended Participants: |
Anyone needing Continuing Professional Education (CPE). |
Revision Date: |
20-Oct-2025 |
NASBA Course Declaration: |
Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Keywords: |
AP Invoice Fraud Prevention: Red Flags and Effective Controls - CPE course for CPAs |
Learning Objectives: |
Course Learning Objectives After completing this course, participants will be able to:
Section 1 AP Invoice Fraud: Overview, Schemes, Red Flags Upon completion of this section, you will be able to:
Section 2 Preventive, Detective, Automated & AI Controls Upon completion of this section, you will be able to:
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Course Contents: |
Section 1. AP Invoice Fraud: Overview, Schemes, Red Flags Learning Objectives for Section 1 1.1 Course Introduction 1.2 Fraud Statistics and Ethical Relevance 1.3 Common AP Invoice and Vendor Fraud Schemes 1. Fictitious or False Invoices (Fake Billing) 2. Shell Vendor Companies 3. Duplicate Invoices and Payments 4. Personal Purchases via Company Vendors 5. Vendor–Employee Collusion (Kickbacks & Overbilling) 6. Vendor Master File Manipulation 7. Payment Diversion & Check Tampering 8. Business Email Compromise (BEC) & Phishing Scams Realistic Case Scenario – Vendor Collusion in AP 1.4 Common Red Flags in AP Invoices & Payments 1. Unexplained Spikes in Vendor Payments 2. Extraordinarily Large Single Payments 3. Suspicious Payment Timing 4. Invoices Just Below Approval Thresholds 5. Duplicate Invoices or Payments 6. Repetitive or Round-Number Invoice Amounts 7. Vendor Identity Anomalies (Duplicate IDs or Addresses) 8. Frequent Vendor Master Changes 9. One-Time Vendors with Big Payouts 10. Employee Behavioral Red Flags Realistic Case Scenario – Red Flags Multiple Red Flags Section 1 Review Questions Section 2. Preventive, Detective, Automated & AI Controls Learning Objectives for Section 2 Introduction to AP Controls 2.1 Key Preventive Controls in AP & Vendor Management 1. Segregation of Duties (SoD) 2. Purchase Orders and Three-Way Match 3. Approval Workflows and Authorization Limits 4. Vendor Due Diligence (Know Your Supplier) 5. Bank Account Change Verification (“Callback” Controls) 6. Access Controls & Physical Safeguards 7. Vendor Rotation and Competitive Bidding 8. Mandatory Vacations & Job Rotation How Preventive Controls Could Have Stopped Jonah 2.2 Detective Controls and Oversight 1. Frequent Reconciliations 2. Analytics & Exception Reporting 3. Vendor Confirmations and Reconciliations 4. Self-Testing of Internal Controls 5. Whistleblower Hotlines and Open Communication 6. Management Oversight and Reviews 7. Internal Audits and Surprise Inspections How Detective Controls Could Have Caught Jonah 2.3 Leveraging Technology in AP Fraud Defense Automated Invoice Matching Systems Duplicate Payment and Data Redundancy Technology Vendor Master File Protection Bank Detail Validation Technologies E-Invoicing: The Ultimate Control Advanced Anti-Fraud Synergy of AI and RPA The Integrated Approach: RPA + AI Technology Needs Oversight Conclusion on Controls 2.4 Key Takeaways and Conclusion AP Processes: High-Value Targets A Multi-Layered Defense Strategy The Critical Role of Culture Your Next Action Steps Section 2 Review Questions Thank You Glossary of Key Terms |
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