Fraud, Technology, and Advanced Internal Controls (Course Id 2837)

• Who is this course for?
  This course is designed for accounting and finance professionals, including CPAs, who need Continuing Professional Education (CPE) and are involved in evaluating internal controls and fraud risk.
• What is this course about or what problem does this course solve?
  This course focuses on understanding how fraud occurs and how effective internal controls—enhanced by modern technology—can prevent, detect, and mitigate fraud risks within organizations.
• Where can the knowledge from this course be used?
  The knowledge from this course can be applied in organizational control environments, financial reporting processes, auditing activities, and risk management functions, particularly in both traditional and technology-driven accounting systems.
• Why is this course important to a CPA or Accountant?
  This course is important because it equips CPAs and accountants with the skills to identify fraud schemes, recognize control weaknesses, and strengthen internal control systems to protect assets and ensure reliable financial reporting.
• When is this course relevant or timely?
  This course is especially relevant in today’s environment where increasing reliance on technology, cloud systems, and automation introduces new fraud risks and control challenges.
• How is a course like this consumed or used?
  This course is completed as a QAS self-study text-based program that includes review questions and requires passing a final exam with a minimum score of 70% to earn CPE credit.

Fraud remains a significant risk for organizations, often leading to financial losses, reputational damage, and regulatory consequences when internal controls are weak or ineffective. For accounting and finance professionals, understanding how fraud occurs—and how strong internal controls help prevent and detect it—is essential to protecting organizational assets and maintaining reliable financial reporting. CPAs frequently play a central role in evaluating control environments, identifying risk factors, and recognizing warning signs that may indicate fraudulent activity.

This course examines the relationship between fraud risk and internal controls, focusing on how organizations design control systems to reduce opportunities for fraud and detect irregularities. Participants explore common fraud schemes such as cash skimming, billing fraud, payroll manipulation, expense reimbursement fraud, and financial statement fraud, while also learning to identify control weaknesses and warning signs such as lack of segregation of duties, missing documentation, and management override of controls.

The course also addresses the growing role of technology in modern internal control environments. Topics include IT general controls, application controls, automation, continuous monitoring, and the use of technology in fraud detection. Participants will also explore control considerations related to cloud-based systems, third-party service providers, and vendor risk management, helping them better evaluate and strengthen internal control systems in today’s increasingly digital financial environment.

NASBA QAS - Text - NASBA Registry - 2837

Course Learning Objectives

• Explain the relationship between fraud risk and internal controls and describe how effective control environments help prevent and detect fraudulent activity.
• Identify common fraud schemes and recognize how these schemes typically occur within organizations.
• Recognize key internal control weaknesses and warning signs.
• Describe the role of technology in modern internal control systems.
• Evaluate risks associated with cloud-based systems, third-party service providers, and remote work environments, including considerations related to user permissions, SOC reports, and vendor risk management.
• Apply professional judgment to assess the effectiveness of internal controls and identify opportunities to strengthen fraud prevention and detection efforts within organizations.

Chapter 1 - Fraud, Technology, and Advanced Internal Controls

Course Learning Objectives

Fraud Risk and Internal Controls

Internal Controls and Fraud Prevention

Fraud Triangle

How Weak Controls Create Opportunity

Role of Tone at the Top

Common Fraud Schemes

Cash Skimming

Billing Schemes

Payroll Fraud

Expense Reimbursement Fraud

Financial Statement Fraud

Control Red Flags

Lack of Segregation of Duties

Missing Documentation

Unreviewed Journal Entries

Override of Controls

Rapid Growth Without Control Updates

Technology and Modern Internal Controls

IT General Controls (ITGCs)

Access Controls

Change Management

Data Backup and Recovery

System Security

Application Controls

Input Controls

Processing Controls

Output Controls

Automation and AI in Internal Controls

Automated Approval Workflows

Continuous Monitoring

Exception Reporting

Audit Trails

Risks of Overreliance on Automation

Internal Controls in Remote and Cloud Environments

Cloud Accounting Systems

User Permissions

SOC 1 Reports

Vendor Risk Management

Glossary