Sound Corporate Governance seriesUnderstanding auditors’ responsibility in

MANIPULATION AND FALSIFICATION OF FINANCIAL STATEMENTS

29th – 30th April 2009, Hotel Rendezvous, Singapore

Your opportunity to hear...

- An excellent opportunity to learn how best to protect your organization and step up on controls to

Tommy SEAH and Stanley CHIA World Class trainers for practicing auditors

Course Objectives

Course Description

- An excellent opportunity to learn how best to protect your organization and step up on controls toprevent fraud in financial statements.

- To impart a detailed understanding of forensic accounting with particular emphasis on themethodologies of financial statement fraud.

- To demonstrate the various aspects of fraud; i.e. fraudulent financial reporting identifying fraudschemes, including computer fraud and methods of concealment, as was the analytical techniques inuncovering fraud and its prevention through effective internal control systems.

- Analyse the general technique used in working in litigation support services.

If you are reading this, this course is for you. It isnot just for accountants and auditors . It is foranyone and everyone who is interested in themanipulation and falsification of FinancialStatements.

The course is of particular interest to theaccounting profession, the world of finance and tobusiness in general.

auditor negligence have been disclosed over thepast few years - WorldCom/Arthur Andersen,Xerox/KPMG, Enron/Arthur Andersen, AdelphiaCommunications / Deloitte & Touche, BaptistFoundation of Arizona/Arthur Andersen, just toname a few. Most responsible and diligentmanager's major concerns would be financialloss, damage to reputation and brand, and the

Recognizing the challenges that organizations are facing in combating Financial Statement Fraud, the event organiser is pleased to present this 2- day workshop on

Manipulation and Falsification of Financial Statemen ts

business in general.

Fraud in Financial Statements is found in almostall countries. Asian countries and in particularSingapore, China, Philippines and Malaysia arenot exempted from such an economic malady.Studies have shown that financial statementmisstatements have occurred at both large andsmall companies, at times causing a huge impacton the bottom line and the share price. Financialstatement fraud causes a decrease in the marketvalue of a stock of approximately 500 to 1,000times the amount of the fraud. The latest is ofcourse the infamous SATYAM case. Numerousexamples of financial statement fraud and alleged

loss, damage to reputation and brand, and theeffect on employee morale. Satyam is a goodexample how things badly things could go wrong.

The course content has also become of criticalinterest to regulators and lawmakers because ofthe notoriety of a series of recent financialscandals that have affected the entire businesscommunity. The course will also review the newinstitutional structures that have been put in placerecently by lawmakers and the accountingprofession to deal with fraud and its prevention,i.e., the Sarbanes-Oxley Act and self-regulatingmeasures adopted by the accounting profession.

Understanding auditors’ responsibility in MANIPULATION AND FALSIFICATION OF FINANCIAL STATEMENTS

DAY ONE

UNDERSTANDING FINANCIAL STATEMENT

• Financial Statement • Key Elements of Financial Statements• Financial Statement Manipulation• Why do senior management falsify the

books?• Errors vs. Irregularities• Lessons Learned, a Case Study: Analysis of a Famous Case

THE FRAUD TRIANGLE - THE THREE

DAY TWO

THE ANATOMY OF FINANCIALSTATEMENT FRAUD

• Utilize Aggressive Reserves• Delay/alter Expense Recognition• Accelerate Revenue Recognition• Exploit Acquisition Reserves• Make Unsupportable Entries• Fabricate Additional Revenues

ANALYSIS OF COMMON FRAUDEXAMPLES AND HOW TO DETECTTHE FRAUD TRIANGLE - THE THREE

FACTORS PRESENT IN ORGANISATIONTHAT ALLOW FRAUD TO OCCUR

Understanding FRAUD

• Incentive/Pressure• Opportunities• Attitudes/Rationalization• Profiles of a Financial Statement Fraudster

EVALUATING THE EXISTENCE OF FRAUD

• Identifying Your Exposure to Financial Statement Fraud

• Evaluate the Existence of Fraud Risk FactorsUsing SEATA™ Risk Assessment Methodology

• Looking for Financial Fraud Schemes Within Your Organisation

EXAMPLES AND HOW TO DETECTPOTENTIAL WARNING SIGNS

• “Refreshed” Receivables• Misstatement Of Expenses• Sales of Development Stage Products• Management Disclosure & Analysis Fraud• Channel Stuffing• Misdated Transactions• Misstatement Of Asset Value & Liabilities• Money Laundering• Moving Inventory Between Locations• Fraudulent Audit Confirmations• Off Balance Sheet Liabilities• Improper Revenue Recognition

Note: This session will enable participant especially Directors and Non- Financial Senior Executives to better understand the basic accounting principles in financial statements. You will learn to recognize the information financial statements convey and how to interpret and act upon the information when reviewing financial statements.

Certified System InvestigatorCSI World Headquarters, Singapore

Endorsed by

CFE InternationalConsultancy Group Private Limited

CFE StrategicAlliances

Jointly Organized by

Understanding auditors’ responsibility in MANIPULATION AND FALSIFICATION OF FINANCIAL STATEMENTS

Tommy is the only Singaporean that has made a name for himself in America’s largestand world renowned Anti-Fraud Association. In 2006, he was elected by his peers inmore than 100 countries to be the Vice Chairman of The Association of Certified FraudExaminers Board of Regents based in Texas, USA. CFE is a post graduate professionalqualification recognized by the FBI and USA Central Intelligence Agency in it’srecruitment of auditors for combating fraud. He is also the Chairperson of CSI WorldHeadquarters. CSI is the only Digital Forensic Certification body that operates in Asia. Anumber of auditors in the United Nations and government services proudly carry the CSIdesignation with distinction.

His services in providing anti fraud and technical product training is much sought after bynumerous multinational companies, banks and governments in the region, includingGermany, Singapore, Malaysia, China, Indonesia, Philippines and Taiwan. Tommy'sprevious work experience includes systems based auditing in an American InternationalBank, where he was the Senior Regional Auditor responsible for the Bank's audit in the

Tommy SeahRegent Emeritus,ACFE (Texas, USA)Chairperson,

Bank, where he was the Senior Regional Auditor responsible for the Bank's audit in theAsia Pacific region. He has also held the top executive position of Chief of Internal Auditin a prime offshore bank where his audit duties cover the Singapore and Hong Kongoperations of the bank. He covers all areas of the bank's audit of operations and ITsystems. He also has practical working experience in the Operations Department of aforeign bank. Of late, Tommy has very successfully trained Anti-Narcotics Police Officersfrom most of the ASEAN countries. In 2008, he was awarded the privilege to train thehighly skilled and intellectually superior officers from the Competition Commission ofSingapore. Tommy Seah is also a prolific writer. He is the author of seven banking booksincluding the F.I.G. Program. The FIG is the authoritative and definitive text on FinancialInstruments designed to be used in the worldwide banking industry for product training.This publication has received excellent review and first class commendation from someof the most authoritative professional certification body and top rated banks in the world.The other six authoritative texts used in his training are The Foreign exchange Audit,The Control of Money Market Activities in Banks, Financial Management, MCA for Banks,SWAPS in Investment Banking and Anti-Money Laundering 101. His latest publicationattempt is on Profiling and Interviewing Techniques. He has set for himself the goal to bethe first Asian to write the first book in “Technology Fraud for the Banking Industry”.

Stanley is both the Director & Principal Consultant of CFE Strategic Alliances, thetraining arm of CFE-In-Practice group of companies and also the Managing Director ofCFE International Consulting Group Pte Ltd, a think-tank company that provides multi-consultancy solutions to companies worldwide. He specializes in investigative

Chairperson,CSI World Headquarters

consultancy solutions to companies worldwide. He specializes in investigativeinterviewing & profiling techniques and has handled numerous cases for both local andforeign financial institutions.

Stanley is also the current Honorary Director, Research & Publication of CSI WorldHeadquarters, an international accreditation body for Digital Forensic. Stanley hasworked for large financial institutions like AIA Insurance, Singapore Exchange and UnitedOverseas Bank where he was involved in anti-money laundering, compliance,enforcement and fraud investigation work. To date, he has investigated more than 100fraud and compliance-related cases and some of them involved over US$1M.

He is well versed in financial products knowledge, fraud examination techniques andcompliance methodologies. Stanley is often invited to speak at conferences and seminarsin Singapore, Malaysia, Hong Kong and Shanghai where he taught fraud investigation,investigative interviewing techniques profiling techniques and internal control. He hasalso co-authored a series of pocketsized guide books for auditors published by CSI WorldHeadquarters. He is currently writing a book on Interviewing & profiling techniques –ISBN 978-981-08-0599-9.

Stanley ChiaCFE,ACFE (Texas, USA)CAMS, ACAMSCSI,CSI World Headquarters

REGISTRATION FORMUnderstanding auditors’ responsibility in MANIPULATION AND

FALSIFICATION OF FINANCIAL STATEMENTS

29th – 30th April 2009, Hotel Rendezvous, SingaporeCourse Fees

SGD 650* per pax for Singapore and other locations

Category Discount

Early Bird ** 5%

Corporate (3 or more pax) 5%

ACSI (Associate) 10%

CSI (Certified) 15%

PAYMENT METHODS

By Cheque:

Please cross cheque made payableto CFE International Consultancy Group Pte Ltdand mail your payment together with thisregistration form to the company addressstated below in the “How to Register” box below.

Telegraphic Transfer:

* Does not include hotel accommodation.** Early Bird Discount ends 20th March 2009.

CSI (Certified) 15%

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• Singapore & Other Delegates—

The Hongkong and Shanghai Banking Corporation LtdAccount No. : 147-619399-001Account Name : CFE International

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ONLINE : www.cfe-icg.comEMAIL : registration@cfe-icg.comTEL : (+65) 6222 9860FAX : (+65) 6222 9865POST TO : CFE International Consultancy

Group Pte Ltd6 Eu Tong SenStreet

HOW TO REGISTER

IMPORTANT NOTICEPayments are required with registration and must be received prior to the Coaching Session to guarantee your place. Walk-in delegates will only be admitted on the basis of space availability atthe Coaching Session and with immediate full payment.CANCELLATIONS & TRANSFERSIf you are unable to attend, a substitute delegate is welcome at no extra charge. Please provide the name and the title of the substitute delegate at least 2 days prior to the program. A refundless 10% administrative charge will be made for cancellation received in writing 10 working days before the program date. A complete set of program documentation and a 50% refund will begiven for cancellation made 3 working days before the program date. Regrettably, no refund can be made for cancellation made on and/or after the program. A complete set of documentationwill however be posted to you.The organizer reserves the right to make any amendments and/or changes to the program, venue, speaker replacements and/or topics if warranted by circumstances beyond its control.DISCLAIMERDue to the interactive nature of the learning session, the sequence and contents of the program may be vary according to the needs of the participants. The speaker reserves the right and theprivilege to conduct the program in the manner which he thinks to be in the best interest of the majority of the participants. Please ensure that you understand this completely so as to preventany form of unrealistic expectation and or disappointment in a public enrolment program that was not tailored to your specific need. Please inform theorganizer in advance if you are not agreeable or do not completely understand the above term and we will cancel your enrolment accordingly.

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CFE InternationalConsultancy Group Private Limited