CFFE Module III
Integrated Case Study cheat sheet
Every chapter's key points, formulas and definitions on one page, for the last week before the exam. Each heading links to the chapter that explains it.
Prevention and detection of fraud
- A case-study answer on prevention and detection works through four connected steps: diagnose the risk exposure, assess the existing control environment, identify the prevention gaps and recommend detective measures.
- Diagnosis applies the fraud tree and the fraud triangle to the facts given, tying pressure, opportunity and rationalisation to the specific organisation described.
- An existing control is judged on whether it actually works, not just on whether it is present on paper.
- Ground every recommendation in the case facts and name the fraud triangle element it addresses; a generic list of controls scores lower than the same controls explained against the weakness found.
- Keep prevention (stopping fraud before it happens) and detection (catching it after) distinct in the answer structure.
Key terms
- Diagnose the risk exposure
- Apply the fraud tree (CFFE Fraud and Corruption Schemes) and the fraud triangle (CFFE Fraud Prevention and Detection, under why fraud occurs) to identify which schemes the organisation is most exposed to and why, tying pressure, opportunity and rationalisation to the specific facts given.
- Assess the existing control environment
- Apply the control types and the strong-versus-effective distinction from CFFE Fraud Prevention and Detection to evaluate what is already in place, and whether it is actually working, not just present on paper.
- Identify the prevention gaps
- Match the diagnosed risks against the eighteen prevention measures in CFFE Fraud Prevention and Detection, under fraud prevention programmes, to name specifically what is missing (tone at the top, surprise audits, mandatory vacations, and so on).
- Recommend detective measures
- Where prevention cannot fully eliminate a risk, recommend the detective control (analytical review, reporting programs, proactive fraud audits) that would catch it promptly if it occurred.
The rest of the sheet covers
- Responding to fraudulent and corrupt activities
- Exam technique and revision
- Glossary