Fraud Lens for Accountants: AP and AR Invoices (Course Id 2613)

• Who is this course for?
  This course is designed for CPAs, accounting managers, controllers, internal auditors, and finance professionals seeking CPE credit—especially those involved in accounts payable (AP) and accounts receivable (AR) processes.

• What is this course about or what problem does this course solve?
  It trains participants to detect and prevent fraud in P2P and O2C cycles, particularly in AP/AR invoice processes—addressing schemes like fictitious vendors, invoice manipulation, lapping, skimming, and fraudulent write-offs.

• How can the knowledge from this course be used?
  Learners will apply skills to spot red flags, design and implement preventive and detective controls, utilize downloadable red-flag tools (P2P/O2C cards and dilemma tree), and leverage RPA and AI technologies to strengthen fraud defenses.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Because organizations lose about 5% of revenue annually to fraud, professionals must uphold strong internal controls and ethical decision-making—plus the course fulfills the California Board of Accountancy fraud CPE requirement.

• When is this course relevant or timely?
  Released and revised in 2025 (most recently on August 08, 2025), it addresses current fraud threats and defenses, including the increasing role of AI and RPA in accounting risk management.

• How is a course like this consumed or used?
  It’s delivered via NASBA QAS self-study text. Participants study the material, use the downloadable tools, then pass a final exam (minimum 70%) within one year to earn 2.0 CPE credits.

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:

• P2P Fraud Prevention: Identify fictitious vendors, invoice manipulation, payment diversion, and other schemes threatening your purchasing and payables processes
• O2C Fraud Detection: Recognize lapping schemes, skimming, fraudulent write-offs, and other techniques used to manipulate sales and receivables
• Control Implementation: Design and implement powerful preventive and detective controls tailored for AP/AR functions
• Technology Applications: Leverage RPA (Robotic Process Automation) and AI (Artificial Intelligence) to strengthen fraud prevention capabilities

The course includes three valuable downloadable tools you can immediately apply in your daily work:

• P2P Red-Flag Cards: Quick reference guide for identifying the seven most common fraud indicators in AP
• O2C Red-Flag Cards: Seven warning signs of potential fraud in AR transactions
• Rapid Dilemma Tree for Daily Transactions: Four-question framework for making sound ethical decisions when facing questionable scenarios

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.

NASBA QAS - Text - NASBA Registry - 2613

Course Learning Objectives

1. Identify and explain common fraud schemes in procure-to-pay (P2P) and order-to-cash (O2C) cycles
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
Procure-to-Pay (P2P) Fraud Prevention

1. Identify and explain common fraud schemes in the procure-to-pay (P2P) cycle
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
Order-to-Cash (O2C) Fraud Prevention

1. Identify and explain common fraud schemes in the order-to-cash (O2C) cycle
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

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