Fraud and Corruption Schemes KASNEB Notes

Download Fraud and Corruption Schemes KASNEB Notes

KASNEB CFFE Module 1 Notes Pdf


This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to identify schemes and categories of fraud, the red flags and the preventive and detective measures and procedures related to the various fraud schemes.


A candidate who passes this paper should be able to:

  • Identify fraud schemes in fraudulent and corrupt activities
  • Identify the red flags related to the specific fraud schemes
  • Design and implement preventive and detective controls
  • Identify the universal and specific risks related to the schemes
  • Identify organisational and occupational fraud/corruption


Fraud/Corruption Schemes

  • Definition of fraud
  • Definition of corruption
  • Occupational fraud
  • Organisation fraud/crime
  • The fraud tree
  • The red flags/indicators of fraud
  • Current trends of fraud schemes
  • Emerging fraud /corruption schemes

  Financial Statement Fraud

  • Definition of Financial Statement Fraud
    • Why Financial Statement fraud is committed
    • The cost of financial statement fraud
    • Types of financial statement fraud schemes
    • Trends in Financial Statement fraud
    • Red flags associated with financial statement fraud
    • Techniques of Detecting financial statement fraud
    • Financial statement analysis
    • Controls related to financial statement fraud

Download Fraud and Corruption Schemes KASNEB Notes

   Asset Misappropriation

  • Definition of asset misappropriation
    • Types of asset misappropriation frauds
    • Cash receipts: Skimming, cash larceny and theft of cash on hand
    • Fraudulent disbursements: Register disbursement schemes, check tampering schemes, electronic payment tampering schemes, billing schemes, payroll and expense reimbursement schemes
    • Inventory and other assets: Misuse of inventory and theft
    • Misappropriation of intangible assets
    • Prevention of asset misappropriation schemes

Bribery and Corruption

  • Definition of bribery and corruption
    • Corruption schemes
    • Techniques of detecting bribery /corruption schemes
    • Methods of making corrupt payments
    • Prevention and detection of corruption

Theft of Data and Intellectual Property

  • Definition of theft of data and intellectual property
    • Types of data and intellectual property
    • Ways information is lost or stolen
    • Electronic counter-surveillance
    • Insider threats to propriety information
    • Methods of investigating corporate espionage
    • Programs for safeguarding proprietary information
    • Measures and procedures of minimizing theft of data and intellectual property

Identity Theft

  • Definition of identity theft
    • Perpetrators of identity theft
    • Characteristics of victims of theft
    • Methods of committing identity theft
    • Types of identity theft schemes
    • Ways of stealing information
    • Responding to identity theft
    • Methods of preventing identity theft

Download Fraud and Corruption Schemes KASNEB Notes

Contract and Procurement Fraud

  • Definition of contract and procurement fraud
  • Methods of procurement
  • Stages/phases in procurement process
  • Categories of procurement fraud schemes
  • Preventing and detection of contract and procurement fraud

Computer and Internet Fraud/Cyber Crime

  • Definition of computer and internet fraud
  • Definition of Cyber Crime
  • Types of computer and internet/Cyber fraud:
  • Electronic Commerce and information Security
  • Prevention, detection of computer and internet/Cyber Crime
  • Computer/Cyber Security

Financial Institution Fraud

  • Definition of financial Institution fraud
  • Types of financial institution frauds
  • Prevention and detection of financial institution frauds:
  • Financial Action Task Force and money laundering and Terrorist
  • Basel committee on banking supervision recommendations

Payment System Fraud Schemes

  • Definition of payment system fraud
  • Types of payment system and the fraud schemes
  • Prevention and detection of payment system fraud scheme

Insurance and Health Fraud

  • Definition of insurance fraud
  • Insurance fraud schemes
  • Prevention and detection of insurance fraud
  • Definition of Health care fraud
  • Health care fraud schemes

Consumer Fraud

  • Investment fraud schemes
  • Telemarketing fraud schemes

Case Study – Occupational and Organisational Crimes

  • Identify the asset misappropriation and corruption schemes
  • Identify the health care fraud schemes
  • Identify the red flags

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