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Author: |
Peter Ilas, FCCA, Finance Transformation Expert, Author, and Strategic Advisor |
Course Length: |
Pages: 24 ||| Word Count: 13,447 ||| Review Questions: 6 ||| Final Exam Questions: 10 |
CPE Credits: |
2.0 |
IRS Credits: |
0 |
Price: |
$17.95 |
Passing Score: |
70% |
Course Type: |
Text |
Technical Designation: |
Technical |
Field Of Study: |
Accounting |
Approved Audience: |
NASBA QAS - NASBA Registry |
Key Takeaways: |
This course trains finance professionals to detect and prevent fraud in accounts payable and accounts receivable invoice processes, including fictitious vendors and lapping schemes.
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Frequently Asked Questions: |
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Description: |
This comprehensive course, "Fraud Lens for Accountants—AP and AR Invoices," is essential for finance professionals seeking to fortify their organization's defenses against financial wrongdoing. Uncover the alarming statistics: organizations lose approximately 5% of their revenue to fraud annually, with the vast majority occurring in the routine, high-volume Accounts Payable (AP) and Accounts Receivable (AR) processes. This practical course equips you with essential skills to spot red flags, implement effective controls, and protect your organization's assets throughout the procure-to-pay (P2P) and order-to-cash (O2C) cycles. You'll master how to detect and prevent common fraud schemes in Accounts Payable (AP) and Accounts Receivable (AR) processes, areas particularly vulnerable to both internal and external threats. Through real-world scenarios and practical applications, you'll learn:
The course includes three valuable downloadable tools you can immediately apply in your daily work:
Whether you're a CPA, accounting manager, controller, internal auditor, or finance professional, this course will enhance your ability to safeguard your organization's financial integrity throughout the P2P and O2C cycles. Join us to develop your "fraud lens" and become a stronger defender against fraud attempts in your daily accounting operations. Please Note: These Fraud CPE credits satisfy the California Board of Accountancy (CBA) fraud requirement. |
Usage Rank: |
31538 |
Release: |
2025 |
Version: |
1.0 |
Prerequisites: |
None. |
Experience Level: |
Overview |
Additional Contents: |
Complete, no additional material needed. |
Additional Links: |
Internal: Internal Controls in Accounts Payable (course on fraud‑resistant AP control design)
Internal: Vendor Issues in Accounts Payable (course on identifying clues to detect fraudulent invoices)
External: PCAOB Auditing Standard AS 2401 - Consideration of Fraud in a Financial Statement Audit (guidance on auditor responsibilities in fraud detection)
External: Accounts payable
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Advance Preparation: |
None. |
Delivery Method: |
QAS Self Study |
Intended Participants: |
Anyone needing Continuing Professional Education (CPE). |
Revision Date: |
08-Aug-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: |
Fraud Lens for Accountants: AP and AR Invoices - CPE course for CPAs |
Learning Objectives: |
Course Learning Objectives After completing this course, participants will be able to:
2. Recognize key red flags in AP and AR invoices that may indicate fraudulent activity 3. Implement effective preventive controls in P2P and O2C processes 4. Design and execute detective controls to identify fraud quickly after it occurs 5. Leverage technology solutions including automation and AI to strengthen fraud prevention 6. Apply ethical decision-making frameworks when facing questionable transactions Section 2
2. Recognize key red flags in AP invoices that may indicate fraudulent activity 3. Implement effective preventive controls in the P2P process 4. Design and execute detective controls to identify fraud quickly after it occurs 5. Leverage technology solutions including automation and AI to strengthen fraud prevention 6. Apply ethical decision-making frameworks when facing questionable transactions Section 3
2. Recognize key red flags in AR invoices that may indicate fraudulent activity 3. Implement effective preventive controls in the O2C process 4. Design and execute detective controls to identify fraud quickly after it occurs 5. Leverage technology solutions including automation and AI to strengthen fraud prevention 6. Apply ethical decision-making frameworks when facing questionable transactions |
Course Contents: |
Section 1: Introduction 1.1 Course Overview What to Expect? Downloadable Bonus Tools 1.2 Why Ethics in Transactions Matter (Statistics) Statistics What this Tells Us Section 2: Procure-to-Pay (P2P) Fraud Prevention Learning Objectives 2.1 Common Fraud Risks in P2P 1. Fictitious Invoices 2. Inflated Invoices or Overbilling 3. Duplicate Payments 4. Check Tampering and Payment Diversion 5. Vendor Master Manipulation 6. Kickbacks and Corruption 7. Expense Reimbursement Abuse 8. Phishing Emails Realistic Scenario with Several Elements 2.2 Red Flags in AP Invoices 1. Unexplained Vendor Payment Increases 2. Extraordinarily Large Payments to One Vendor 3. Payments Just Under the Authorization Threshold 4. Duplicate Invoices or Payments 5. Random Spikes in Payment Volume and Times 6. Unusual Patterns in Payment Timing or Amounts 7. Large Purchases on an Employee Company Card How to Approach Red Flags Behavioral Warnings 2.3 Preventive & Detective Controls for P2P A. Preventive Controls in Accounts Payable B. Detective Controls in Accounts Payable 2.4 Manual, RPA & AI Controls in P2P Manual Controls—Strengths and Limitations RPA—When Robots Are Busy with AP Invoices Artificial Intelligence & Machine Learning in AP Section 2 Review Questions Section 2 Review Questions Feedback Section 3: Order-to-Cash (O2C) Fraud Prevention Learning Objectives 3.1 Common Fraud Risks in O2C 1. Lapping (a Spiraling Payment Diversion) 2. Skimming (Under-the-Table Cash Theft) 3. Fictitious Sales (Fake Invoices/Receivables) 4. Fraudulent Write-offs or Credits Realistic O2C Fraud Scenario External vs. Internal Threats in O2C 3.2 Red Flags in AR Invoices 1. Revenues Outpacing Actual Sales or Assets 2. Sudden Activity in Sleeping Accounts 3. Excessive Write-Offs, Discounts, or Returns 4. Discrepancies Between Deposits and Ledger 5. Customer Complaints about Incorrect Balances 6. Employee Reluctance to Share Duties or Take Time Off 7. Employee Lifestyle that Exceeds Salary Red Flags Not Alone 3.3 Preventive & Detective Controls for O2C A. Preventive Controls in Accounts Receivable B. Detective Controls in Accounts Receivable 3.4 Manual, RPA & AI Controls in O2C Manual vs. Automated in AR AI in AR—Fraud Detection and Process Improvement: Using AI and RPA Together Scenario Digital Whistleblowing IT Controls Automation Platforms Preventive vs. Detective Technology Human Element Section 3 Review Questions Section 3 Review Questions Feedback Section 4: Course Takeaways and Completion 4.1: Key Takeaways and Course Completion Course Key Takeaways Your Feedback Glossary of Key Terms |
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