IFA NEWSLETTER. The Institute of Forensic Auditors invites you to its Christmas Drink! Date: December 17 th, h

The Institute of Forensic Auditors invites you to its Christmas Drink!

IFA NEWSLETTER Date:

December 17th, 2009 – 16.00h

Location:

SAP Lounge Dewezplein 5 (near Rondeweg) 1800 Vilvoorde

Program:

The new draft bill on private investigations - Legal issues by Stijn De Meulenaer - IFA views by Frank Staelens - Networking drink

Registration: [email protected] (prior to December 10th)

Issue 14 • 10 November 2009

Institute of Forensic Auditors (IFA), Brussels. Send your copy to: [email protected]. Editing Board: Evert-Jan Lammers RFA (Editor-in-chief), Prof. Michel J. De Samblanx RFA, Johan Engelen RFA, Miguel Janssoone RFA, Prof. Chris Lefebvre RFA, Anton Penneman RFA.

INSTITUTE’s ISSUES 1. IFA Event Calendar 2009-2010 2 2. From the Board of Directors - IFA National Professional Federation 3 3. General Members’ Meeting 2009 8 4. Key-People-Interview 10 FRAUD ISSUES 5. Forensic book store 6. Faits divers 7. Forensic news

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SPONSORS

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Institute of Forensic Auditors - IFA Newsletter -

Issue 14 - 10 November 2009

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1. IFA Event Calendar 2009-2010 The below IFA Event Calendar includes the workshops from the IFA Training Program, with a wide variety of trainings that can be attended by Registered Forensic Auditors and other member and also nonmembers. Everyone can register via www.forensicaudit.be.

Program first quarters 2009 March April May June September October

VAT Carrousels - French spoken. Mr. Marc Holsteyn, Federal Police Privacy & investigations, Mr. Stijn De Meulenaer, Everest Law Fraud insurance, Mr. Michel Van Swieten, AIG Insurance Falsification of documents, Mr. Alain Boucar, Federal Police Fiscal regularization of fraud, Mr. Johan Speecke, Laga Lawyers Verbal Reporting and Expert Witness, Mr. Walter van Oosten and Mr. Evert Jan Lammers, INSTIFIN

Program last quarter 2009 10 November 24 November 08 December 17 December

Computer Forensics, Mr. Peter Leyman and Mr. Toon Van Laere (Deloitte) - POSTPONED Fraud Risk Management for Banks, Mrs. Françoise Vande Voorde and Mr. Patrick Vander Maelen (BNP Paribas Fortis) Forensic Report Writing, Mr. Johan Engelen (Ernst&Young) and Mr. Lode Barrezeele (i-Force) IFA Christmas Drink in combination with (1) annual legal update and (2) annual update on fraud schemes

Program first quarter 2010 14 25 11 20

January February March May

Corruption and Bribery, Mrs Cécile Louchard (PWC) Integrity Management in Public Organisations, Bart De Bie (i-Force) Liability Jurisprudence & cases, Dirk De Maeseneer (Praxislaw) Data & Process Mining, Mieke Jans (Deloitte)

Venue and fees The workshops under the IFA Forensic Audit Training Program normally take place in the Sint-Anna Center in Brussels, unless indicated otherwise. Sint-Anna Center Sint Annadreef 68B 1020 Brussels (Laeken) T: +32 (0)2 478 0322 Route description on : http://www.sintannacenter.be/

Normal registration fees for the workshops from the IFA Forensic Audit Training Program, unless indicated otherwise : IFA members: € 40 (public sector) and € 100 (private sector). Non-members: € 200. Given the low IFA membership fee, it is worthwhile considering an IFA-membership and thus benefiting from the substantial reductions on training fees.



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2. From the Board of Directors From the President

Dear readers, On 21 October 2009 we have proudly announced the legal recognition of the Institute of Forensic Auditors as a National Professional Federation. In this 14th edition of the IFA Newsletter you will find more information on the recognition process and on the importance of being a National Professional Federation. A substantial part of this issue is on this important moment in the history of or Institute. Let’s celebrate this together at the Annual IFA Christmas Cocktail on Thursday 17 December 2009 in the splendid SAP Lounge in Brussels. I am looking forward to meeting you then. Enjoy the reading Frank Staelens RFA

President

From the Secretary-General An short history of IFA (2001-2009) The Institute of Forensic Auditors (IFA) was founded on March 7th 2001 by founding fathers Prof. Michel J. De Samblanx, Frank Staelens and Evert-Jan Lammers. The purpose of this initiative was to provide society with a group of highly qualified professionals in the field of financial fraud and other disputes. For purposes of credibility and accountability the Institute holds a register of Registered Forensic Auditors. Since the beginning the Institute of Forensic Auditors not only offers society a pool of skilled forensic auditors but also watches over their education and training. The Institute has chosen the training program Executive Class Forensic Auditing (University of Antwerp Management School - UAMS) as a reference. The Institute contributes to the further development of the forensic auditor’s profession, for example through the a professional code of conduct, and persuits advocacy of the interests of the forensic auditors in Belgium. Under the driving presidency (2001-2008) of Prof. Michel J. De Samblanx the Institute has increased the visibility and the credibility of the forensic audit profession in Belgium. Both in Belgium and abroad the Institute has been widely acknowledged and appreciated, not the least due to the refreshing view on public-private cooperation in the context of fraud combat. Right from the start the Institute has been a meeting place for fraud specialists from the private sector, the public sector and from the academic environment. It is a multidisciplinary structure by nature. Among her members the Institute counts representatives from different disciplines such as lawyers, criminologists, economists, accountants, auditors and business administrators, which moreover is reflected in the composition of the Board of Directors of the Institute. During the past few years the membership base has broadened steadily and during the General Members’ Meeting of June 17th 2008 the Institute has celebrated the accreditation of the 100th Registered Forensic Auditor.



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Still in 2008 Mr Frank Staelens took over the presidency and several new members joined the Board of Directors in a continued effort to further execute the Institute’s mission. Today the membership figure has reached the number of 300 of which 50% is also a Registered Forensic Auditor. The many efforts during recent years filled in the necessary conditions to apply for a recognition of IFA as a national professional federation. Eventually this application was submitted on March 26th 2009. The recognition which subsequently was conferred, stands for an important milestone in the history of the Institute of Forensic Auditors and is to be considered as a next step of the IFA towards the legal protection of the title of Forensic Auditor. Miguel Janssoone RFA

Secretary-General Vice-President

From the Commission Legal Affairs Why recognition as a National Professional Federation? The IFA has been founded in 2001 as a Belgian non-profit association. The statutory objective is, among other things, the advocacy of the interests of the forensic audit community in Belgium. Since the start, IFA has put tremendous effort in shaping and presenting the forensic audit profession to the stakeholders, and in adding to the credibility to the profession, for example by setting up the register of Registered Forensic Auditors. Phase 1 In order to reinforce these efforts, and further to the advice of the Commission Think Tank 2015, and supported by the General Members’ Meeting in June 2008, the Board has decided to pursuit protection of the title of Forensic Auditor by legal recognition of this title. The procedural steps that are necessary for this recognition can only be taken by an institute that has been recognised as a national professional federation. Therefore the Board has ruled that - as a first step - the Institute pursuits to obtain the title of National Professional Federation. Today we can proudly confirm that we have succeeded. Phase 2 IFA will continue giving priority to advancing in this process. The second step consists of starting up the procedure of legal recognition of the title of Forensic Auditor. The Board is convinced that these efforts are indeed in the interest of the Belgian forensic audit community. In this respect we cannot but mention the looming changes in the law on private investigations. Stijn De Meulenaer RFA

Board Member, Chairman Commission Legal Affairs

High Counsel for Independent Professions and SME’s The Institute of Forensic Auditors vzs-asbl has been recognized as a National Professional Federation by letter of 2 October 2009 from the High Counsel for Independent Professions and SME’s

More information on the High Counsel can be found at http://www.hrzkmo.fgov.be/



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Press release 21 October 2009

Dutch press release Instituut van Forensische Auditoren erkend als Nationale Beroepsfederatie. De voorzitter van Instituut van Forensische Auditoren (IFA), Frank Staelens, is zeer tevreden dat het IFA door de Hoge Raad voor de Zelfstandigen en de KMO zopas als Nationale Beroepsfederatie werd erkend. De IFA-voorzitter benadrukt dat de volgende stap er in bestaat om de beroepstitel van Registered Forensic Auditor te laten erkennen om verder te bouwen aan een wettelijke basis als garantie voor kwalitatief fraudeonderzoek in België. Het IFA wil een corps van gekwalificeerde fraudeonderzoekers aanbieden die de publieke en de privésector moet toelaten om een betere verdediging op te bouwen tegen het maatschappijverstorend fenomeen “fraude” . Rekening houdend met het maatschappelijke belang van de fraudebestrijding roept Staelens de overheid/politici op om de procedure voor de wettelijke erkenning van het beroep van forensische auditor in te leiden. Het Instituut van Forensische Auditoren (IFA) werd als Belgische vzw opgericht in 2001. Het IFA vertegenwoordigt de beroepsbeoefenaars die met forensische audit begaan zijn. De forensische auditoren zijn gespecialiseerd in onderzoeken naar aanleiding van financieel juridische geschillen en onregelmatigheden, met inbegrip van fraude. Het IFA houdt een lijst bij van “Registered Forensic Auditoren”. Deze RFA’s zijn gecertificeerd op basis van hun opleiding en/of beroepservaring en moeten beantwoorden aan de normen deontologie en permanente vorming van het IFA. Het IFA telt thans 308 leden waarvan 147 RFA’s. Hiervoor worden maandelijkse opleidingen georganiseerd rond topics en best practices die een kwalitatieve beroepsuitoefening helpen garanderen. Het IFA onderhoudt relaties met alle instituten die andere auditberoepen vertegenwoordigen in België. Het IFA is een voorbeeld van publiek private samenwerking. Het IFA betracht onder andere het uitwerken van een pragmatisch en realistisch regelgevend kader voor ‘publiek-private samenwerking’ (PPS) in het kader van fraudeonderzoek. Concrete doelstellingen zijn het uitwerken van denkpistes voor: (1) Het uitwerken van een wettelijk kader voor de uitvoering van privaat fraudeonderzoek in het kader van horizontale fraude, zijnde fraude waarvan de organisatie het slachtoffer wordt zonder rechtstreeks nadeel voor de overheidsmiddelen en waarbij de onderzoekswerkzaamheden worden uitgevoerd binnen de bedrijfsmuren; (2) Een voor alle rechtspersonen en op alle beroepscategorieën toepasselijk onderzoeksbeleid in het kader van horizontale fraude; (3) Een voor alle rechtspersonen en op alle beroepscategorieën toepasselijk meldingsbeleid in het kader van horizontale en verticale fraude; (4) De modaliteiten voor het afstemmen van een privaat onderzoekstraject op een publiek onderzoek in geval van samenloop; (5) De voorwaarden waaraan een privaat onderzoeksdossier dient te voldoen om als basis te worden gebruikt voor een burgerrechtelijke of strafrechtelijke aangifte,teneinde te vermijden dat er ontslagen of beslagen worden ingeleid op basis van dossiers die niet voldoen aan de kwaliteitseisen en/of onderzoekswerkzaamheden door private auditoren moeten worden overgedaan door onderzoekers van het publieke opsporingsapparaat; (6) Het uitwerken van een kader voor het bevorderen van de kwaliteit van gerechtelijke expertises in het kader van horizontale en verticale fraudedossiers. Niet alleen neemt het aantal fraudegevallen toe; ook de complexiteit van fraude gaat voortdurend in stijgende lijn. Zowel de publieke sector, als de privé sector heeft nood aan gedegen en betrouwbare fraudeonderzoekers. IFA vult deze nood op een professionele wijze in en zorgt ook voor kruisbestuiving tussen fraudeonderzoekers van de publieke en private zijde. In vergelijking met de andere EU-landen bekleedt het IFA een unieke positie in België.



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French press release L’institut des Auditeurs de Fraude reconnu comme Fédération Professionnelle Nationale. Le Président de l’Institut des Auditeurs de Fraude (IFA), Frank Staelens, se réjouit de ce que le Conseil Supérieur des Indépendants et des PME vient de reconnaître l’IFA comme Fédération Professionnelle Nationale. Le Président de l’IFA met en exergue que ce n’est que la première étape dans la mise en place d’un cadre légal qui doit garantir la qualité des investigations de fraude en Belgique. L’étape suivante sera l’obtention de la reconnaissance légale du titre de « Registered Forensic Auditor ». L’IFA se donne pour but de constituer un corps d’auditeurs de fraude qualifiés permettant au secteur public et privé de mieux se protéger contre le phénomène de la fraude, véritable facteur de perturbation de la société. Compte tenu de l’intérêt sociétal de la lutte contre la fraude, Frank Staelens en appelle aux autorités et aux politiciens, afin qu’ils mettent en œuvre la procédure d’adoption de la reconnaissance du métier d’auditeurs de fraudes. L’Institut des Auditeurs de Fraude a été fondé comme ASBL de droit belge en 2001. L’IFA représente tous ceux dont le métier touche à l’investigation de fraudes. Les auditeurs de fraudes sont spécialisés dans l’enquête menée dans le cadre de différends et d’irrégularités financières, y compris la fraude. L’IFA tient la liste des « Registered Forensic Auditors ». Ces RFA ont obtenu la certification compte tenu de leur formation et/ou expérience professionnelle et doivent répondre aux normes déontologiques et aux exigences de formation permanente exigés par l’IFA. L’IFA compte à ce jour 308 membres, dont 147 RFA. Des sessions de formation sont organisées chaque mois autour de sujets et de best practices qui doivent garantir un bon exercice de la profession. L’IFA est en relation avec tous les Instituts qui représentent les autres métiers d’Audit représentés en Belgique. L’IAF est un exemple de coopération entre les secteurs publics et privés. L’IFA poursuit comme but la construction d’un cadre réglementaire pragmatique et réaliste favorisant la coopération publique/privée dans le cadre des enquêtes de fraude. Parmi ses objectifs concrets, l’organisation de la réflexion autour des thèmes suivants : 1. L’élaboration d’un cadre juridique aux enquêtes de fraude privées en cas de fraude horizontale, cette dernière étant la fraude dont l’entreprise ou l’organisation est victime sans qu’il y ait de préjudice direct pour l’autorité et au cours de laquelle toutes les opérations de recherches sont faites à l’intérieur de l’entreprise ; 2. Une politique d’investigation applicable à toutes les personnes de droit et à toutes les catégories professionnelles dans le cadre de fraudes horizontales ; 3. Une politique de rapport applicable à toutes les personnes de droit et toutes catégories professionnelles dans le cadre de fraudes horizontales et verticales; 4. Des modalités d’harmonisation des procédure d’enquêtes privées et publiques en cas de concours ; 5. Les conditions auxquelles un dossier d’investigation privée doit satisfaire pour servir de base à un dépôt de plainte civile ou pénales. Il faut en effet éviter des procédures de licenciements ou de saisies introduites sur base de dossiers qui ne satisfont pas aux exigences de qualité et/ou d’enquête et qui doivent par conséquent être refaits par des enquêteurs du secteur public ; 6. L’élaboration d‘un cadre pour la promotion de la qualité des expertises judiciaires dans le cadre de fraudes horizontales et verticales. Le nombre de fraudes est en augmentation constante mais plus est, la fraude devient chaque jour plus complexe. Tant le secteur public que le secteur privé ont un besoin urgent d’ enquêteurs de fraudes sérieux et fiables. L’IFA répond à ces besoins de façon professionnelle et veille aux échanges entre enquêteurs de fraudes du public et du privé. Comparé aux autres pays de l’Union Européenne l’IFA occupe en Belgique une position unique. Institute of Forensic Auditors - IFA Newsletter -


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Congratulations received ….

…. from the State Secretary for Fraud Combat

Ik heb er kennis van genomen dat het 'Instituut van Forensische Auditoren' werd erkend als nationale beroepsfederatie door de 'Hoge Raad voor de Zelfstandigen en de KMO'. Bij herhaling heb ik als Staatssecretaris voor de Coördinatie van de fraudebestrijding gewezen op de maatschappelijke must van fraudebestrijding en de mijns inziens onontbeerlijke samenwerking tussen de overheid en private partners, inzonderheid bij de aanpak van horizontale fraude. Hoewel dit aspect van het fraudefenomeen zich meestal slechts afspeelt in de private sfeer, is een afstemming met de regelgeving van de overheid primordiaal en moet het eigen werkingskader hiermee absoluut complementair zijn ter vrijwaring van het algemeen belang. Binnen mijn actieplan fraudebestrijding 2009-2010 dat door het 'Ministerieel Comité voor de strijd tegen de fiscale en sociale fraude' is goedgekeurd, werd dan ook een project ingelast waarbij een haalbaarheidsstudie zal uitgevoerd worden om de mogelijkheden voor deze noodzakelijke publiekprivate samenwerking in kaart te brengen. Het IFA geeft blijk van haar maatschappelijke betrokkenheid door binnen dit project het voortouw te nemen, samen met de betrokken partners uit de privésector en de overheid. De erkenning van het IFA als nationale beroepsfederatie, bevestigt niet alleen de representativiteit en actieve werking van het Instituut, maar ook haar status van bevoorrechte gesprekspartner voor de overheid. Het is in deze geest van samenwerking dat ik als Staatssecretaris vorm wil geven aan onze gemeenschappelijke uitdaging te komen tot een zo complementair mogelijke aanpak van het fraudefenomeen in al zijn facetten, dus ook wat betreft de strijd tegen horizontale fraude. Ik wens dan ook het 'Instituut van Forensische Auditoren' te feliciteren met deze erkenning. Carl Devlies, Staatssecretaris voor de Coördinatie van de fraudebestrijding toegevoegd aan de Eerste Minister. Secrétaire d’État à la coordination de la lutte contre la fraude adjoint au Premier Ministre.

…. from the Federal Judicial Police

Het IFA erkend als nationale beroepsfederatie! Het heeft acht jaar geduurd sinds haar oprichting, maar nu is het IFA dus erkend als nationale beroepsfederatie. Ik heb het voorrecht gehad om in 2001 mee aan de wieg te staan van het IFA en ben er nog steeds nauw bij betrokken. En dat was en is nog steeds uit overtuiging. 'Law enforcement agencies' kunnen al lang niet meer alleen alle vormen van fraude bestrijden. Vraag is overigens of dat überhaupt ook moet. Het is goed dat ook de private sector zich organiseert binnen bestaande structuren om in wel omschreven gevallen, eventueel buiten justitie om maar alleszins in samenspraak met de autoriteiten, voornamelijk horizontale fraude mee te onderzoeken en er een oplossing voor te vinden. Dat is nu de nieuwe uitdaging voor het IFA: samen met de publieke sector een wettelijk kader zoeken om die opdracht naar behoren te kunnen uitvoeren. De eerste stap is bij deze alleszins gezet: het IFA evolueerde van een instituut op zoek naar zichzelf en naar haar rol in de fraudebestrijding, naar een erkende nationale beroepsfederatie en dus een volwaardige gesprekspartner voor de overheid. Mijn welgemeende felicitaties! Johan Denolf, Directeur, Directie economische en financiële criminaliteit, Federale gerechtelijke politie.



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…. from Transparency International

The Institute of Forensic Auditors in Belgium is now a National Professional Federation! This new status lightens the track towards a less corrupt society. Both IFA and Transparency International follow this track. We congratulate you with this enlightening achievement! Chantal Hébette-Van den Broeke Chair, Transparency International Belgium …. and more congratulations are being received as we speak. We thank these organisations for their kind words that strengthen our belief that this is indeed the right track to follow.

3. General Members’ Meeting 2009 On 27 March 2009 the Institute of Forensic Auditors held its General Members’ Meeting. Place of the event this year was the Auditorium at the stately headquarters of FORTIS in Brussels. Over 60 participants from both the private and the public sector attended the IFA-members’ yearly assembly. At 01.20 pm the well-filled afternoon program started with the statutory session. IFA President Frank Staelens, assisted by Vice-president and Treasurer Ludo Caris, briefly overviewed the activity report and financial report with relation to the year 2008. They also looked ahead by means of an outlook and the budget for the year 2009, discussing upcoming trainings and other events and the re-launching of the various committees. Further Mr Dirk Stragier presented the auditors’ report, after which the general members’ assembly approved the annual accounts and discharged the members of the Board of Directors. Next important issue on the agenda concerned the approval of the Continuous Education Standards for our Registered Forensic Auditors. In accordance with article 10.b. of the bylaws of our Institute, the Board of Directors had indeed decided to put in place such Standard for Registered Forensic Auditors. The draft Standard had been made available to the members previously. The Board received some comments by a few of our members, for which the Board was thankful. After a lively and constructive debate the assembly approved the Continuous Education Standard. Moreover, the Board of Directors has decided to change the temporary waiver procedure into a permanent accreditation procedure. The accreditation conditions as described in article 10 of our bylaws nevertheless remain unchanged. However, as the statutory required 2/3 attendance voting quorum for the amendment to the by-laws was not reached, in order to obtain the members’ approval a subsequent extraordinary general members’ meeting had to be organized in June 2009. One of the keynote speakers: Mr. Frans Roest

After the closing of the statutory session by IFA President Frank Staelens, and following an enjoyable coffee break, the academic session was opened with the introduction of the first of three keynote speakers: Financial Management Professor and Chief Economist at Fortis Bank, Mr Freddy Vanden Spiegel. During a bit less than an hour and in an inimitable way this sublime orator entertained the attentive audience by discussing quite straight the current crisis, its causes and implications. Then it was the challenging (if not to say unrewarding) task of the next keynote speaker Mr Patrick De Wijngaert, founder of Ethiconomy bvba, to take over the figurative torch by discussing ethics and integrity in business by means of an interactive and appealing presentation. Finally, Mr Frans Roest, SeniorParketsecretaris, Functioneel Parket Handhavingseenheid Den Bosch (The Netherlands), charmingly gave a brief but interesting introduction into the highly topical Ponzi-schemes and asset recovery procedures.



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The presentations of the keynote speakers can be found on the IFA-website www.forensicaudit.be. During the academic session thanks was rendered not only to our keynote speakers, but also to Mrs Els Van Binnebeek-Ackermans of Fortis for the professional logistical and technical support, to Mrs Françoise Vandevoorde, IFA Board Member and Head of Group Investigations at Fortis, for hosting the event and last but not least to Ms Delphine Gorloo, IFA Event Coordinator for the excellent administrative support. Finally all participants were offered the opportunity to flush the various fraud items by means of a drink and a bite. Networking reception well attended

4. KPI (Key People Interview) Prof. Michel De Samblanx RFA Honorary President of IFA

Michel has been key to the development of forensic auditing in Belgium. He was in front when IFA was founded back in 2001. And he was in front when the Masterclass Forensic Auditing program was developed at the UAMS Management School one year earlier. The current academic year 2009-2010 is the 10th anniversary of the Forensic Auditing program.

How has the training program evolved over the years? MDS: So far every year UAMS has adapted the program further to the recommendations of the participants and our view on the matter. Last year for example, all participants had to draft their thesis on a common subject: corruption. These theses have been published in a book. And the book has been released at a seminar organized by UAMS, where the participants have presented their findings. It has been a real challenge to all. Professional development, and personal development. And this year for the first time participants of the Forensic Auditing program will attend certain modules together with participants of the Master in Internal Auditing program. We will keep on developing.

Which interaction is there between IFA and UAMS? MDS: IFA has always been important for UAMS and vice versa. UAMS encourages participants of the Forensic Auditing program to becoming a member of IFA: registering as an RFA, engaging in activities, attending PE-trainings, etc. And IFA is an important source of teachers and professors in the Forensic Auditing program. Now that IFA has been recognized as a National Professional Federation, this interaction will probably increase. IFA and UAMS will keep on professionalizing together.

What is your main accomplishment in the forensic audit program? MDS: Apart from starting the program up, back in 2000, the main achievement is that we have continuously improved the program according to the needs of the participants. This is certainly one of the main reasons why organizations keep sending professionals to the program. But as we are ambitious, we know that many changes will follow. We want to fulfill the needs of every forensic audit organization in such a way that young and ambitious professionals can become Registered Forensic Auditor, and work in accordance with the professional standards of the IFA.



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What is your main challenge in the area of the forensic auditing program? MDS: That would most certainly be the legal recognition of Forensic Auditing as an economic profession in Belgium. The first step has just been taken, with the recognition of IFA as a National Professional Federation. The second step must be taken soon. The momentum is there. Both the public sector and the private sector recognize the added value of a true professional institute, which forms an integral part of the existing structures for fraud combat and corporate governance. We must not forget that in the bylaws, IFA refers to the Forensic Auditing program of the UAMS as a training benchmark. At the UAMS we train participants in the IFA code of ethics and professional standards.

What is the main recommendation from UAMS to IFA? MDS: At the UAMS the participants share much ‘private time’ with teachers and professors including myself. Almost 200 hours in total. We know what drives these professionals. They share their worries with us, sometimes put their hearts on the table. Without exception these are motivated people. They deserve the personal treatment in order to guide them along the IFA-ethical code and professional standards that they have learned already at UAMS. Next KPI: Mr. Frans Brüner (OLAF)

5. Forensic book store Interesting websites for forensic auditors In this edition we draw your attention on a variety of websites that can be of interest for you as a forensic audit professional. Here you can find techniques, tools, methodologies, standards, facts and figures, training material, articles, etc. Europol - European http://www.europol.europa.eu/ EUROJUST - European http://europa.eu/agencies/pol_agencies/eurojust/index_nl.htm Office européen de Lutte Anti-Fraude (OLAF) - European http://ec.europa.eu/dgs/olaf/ European Business Ethics Network (EBEN) - European http://www.eben-net.org/ European Corporate Security Association (ECSA) - European http://www.ecsa-eu.org/ Network of Independent Forensic Accountants (NIFA) - UK http://www.nifa.co.uk/ Canadian Institute of Chartered Accountants (CICA) - The Alliance for Excellence in Investigative & Forensic Accounting (the Alliance / IFA) - Canada http://www.cica.ca/ifa The Diploma in Investigative & Forensic Accounting (DIFA) - Canada http://www.utoronto.ca/difa/ Forensic Accountants Society of North America (FASNA) - US http://fasna.org/



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Chartered Accountants (Australia) - The Australian forensic audit profession http://www.charteredaccountants.com.au/forensic_accounting/forensic_accounting_home Transparency International (TI) - International http://www.transparencyinternational.org Business & Society Belgium (B&S) - Belgium http://www.businessandsociety.be/ Instituut van de Bedrijfsrevisoren (IBR) - Belgium http://www.ibr-ire.be/ Private veiligheid – Sécurité privée (Politeia) (tijdschrift) - Belgium http://ecom.politeia.be/scripts/foxisapi.dll/MercatorIshop.MercatorIshop.showItem?id_art=PRIVAT002W The Institute of Internal Auditors (IIA) - International http://www.theiia.org FraudInfo (Newsletter of the Association of Certified Fraud Examiners - ACFE) - US http://www.acfe.com/optinout.asp?type=fraudinfo&action=subscribe Journal of Forensic Accounting (JFA) - US http://www.rtedwards.com/journals/JFA/ Startpagina - Belgium http://audit.startpagina.be/ http://fraude.startpagina.be/ Internet Archive - international http://www.archive.org Domain Tools - international http://whois.domaintools.com/ Quarkbase - international http://www.quarkbase.com WieOWie - international http://wieowie.nl Anoniem Mailen - international http://www.anoniemmailen.nl Federal Bureau of Investigation (FBI) - Belgium http://www.fbi.gov/majcases/fraud/fraudschemes.htm Fraud Center - US http://www.fraud.org/ Alert Global Media Inc. – MoneyLaundering.com - international http://www.moneylaundering.com/Pages/Home.aspx Institute of Forensic Auditors - Belgium http://www.forensicaudit.be We realise that the above listing is only a start. It requires regular updating and sharing with other forensic auditors in order to develop a listing that really matters. Add any websites? [email protected]



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Recent publications at John Wiley and Sons Financial Statement Fraud - Prevention And Detection Zabihollah Rezaee & Richard Riley 332 p | John Wiley and Sons Ltd | 2nd Revised edition | October 2009 ISBN10 0470455705 ISBN13 9780470455708

Fraud Analysis Techniques Using Acl David Coderre 176 p | John Wiley and Sons Ltd | September 2009 ISBN10 0470392444 ISBN13 9780470392447 Anti-Fraud Risk and Control Workbook Peter Goldmann & Hilton Kaufman 178 p | John Wiley and Sons Ltd | July 2009 ISBN10 0470496533 ISBN13 9780470496534 Computer Aided Fraud Prevention And Detection A Step By Step Guide David Coderre 304 p | John Wiley and Sons Ltd | April 2009 ISBN10 0470392436 ISBN13 9780470392430 Computer Fraud Casebook - The Bytes That Bite Joseph T. Wells 440 p | John Wiley and Sons Ltd | February 2009 ISBN10 0470278145 ISBN13 9780470278147

6. Faits divers IFA stands for Institute of Forensic Auditors, but also for: Institute For Astronomy International Federation of Airworthiness International Federation of Aromatherapists International Fertilizer Industry Association and last but not least it stands for: International Fitness Association International Federation on Ageing International Funeral Awards.



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7. Forensic News Whistle blowing protection for employees in the UK as from October 1st, 2009 The Financial Reporting Council (FRC), the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance, issued a press notice indicating that three of its Operating Bodies – the AADB (the Accountancy and Actuarial Discipline Board, the FRRP (the Financial Reporting Review Panel) and the POB (the Professional Oversight Board) have been added as bodies to which employees can responsibly disclose information under the “whistle blowing” provisions of the 1996 Employment Rights Act (ERA), Section 47B (1). The purpose of this act is to protect employees and workers from any detrimental treatment from their employer if they make a disclosure of wrongdoing to the specified bodies. The workers should make a disclosure of wrongdoing in the public interest and in good faith; they will be protected provided that their disclosure is substantially true and that the wrongdoing falls within the scope of the FRC’s responsibilities. The extension of the bodies to which workers can make a protected disclosure will definitely increase the effectiveness of the FRC. The Department of Business Innovation and Skills has produced a guide to the Act, which is available on its website at www.bis.gov.uk.

Madoff auditor pleads guilty to fraud David Friehling, the auditor responsible for auditing Bernard Madoff’s corrupt investment empire, has pleaded guilty to nine charges of securities fraud and filing false audit reports in Madoff’s Ponzi scheme. He admitted that he failed to carry out his duties adequately and prosecutors argued that there was no evidence that he had conducted a “meaningful audit”, or examined the bank accounts through which client funds flowed. Nonetheless he signed off the annual accounts. In that capacity “he was one of the key enablers of Bernard Madoff’s historic fraud” said Preet Bharara, the US prosecutor, in a statement. Mr Friehling argued that he was unaware that Madoff’s company was fraudulent. He did not contact investors nor acted as “feeder to investors”. He faces a maximum of 114 years in prison.

Madoff (2) "The latest Bernard Madoff tome could offer the most detailed look yet at how the confessed swindler eluded authorities' grasp for so long. It is a long-awaited report by the inspector general's office at the Securities and Exchange Commission. The SEC wants a significant chunk of its examiners to be credentialed as certified fraud examiners. The report is likely to find that some staff probing Mr. Madoff were inexperienced and lacked the skills for the task." (in: WSJ - US edition)

Spreadsheets at the basis of error and fraud Wrongful use of spreadsheets can cause major errors and fraud in financial reporting, which in turn provokes major losses in companies and in society at large. Most companies use spread sheet applications to perform complex financial analyses and reporting, whereas these spreadsheet applications often are simple and lack quality.



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An academic survey has revealed that 65% of spreadsheet applications contain at least one major error. In total the researchers discovered 281 errors in 25 spreadsheet applications. Highlights:

Allied Irish Bank: fraud with spreadsheets by an unqualified trader. Loss of USD 700 mln and 30% loss of market share. Fannie Mae: error in financial reporting of more than USD 1 bn due to a spreadsheet error. Freddie Mac: external auditor reports major shortcomings in internal control due to inadequate use of spreadsheet applications.

Despite these major problems spreadsheet applications are more important than ever. Six suggestions to preventing spread sheet blues (source: Protiviti): 1. Reduce the number of spreadsheet applications by improving the regular business system applications. 2. Introduce a system of testing of spread sheet applications, as happens with regular business system applications. 3. Introduce a system of “versions” for critical spreadsheet applications, in such a way that only validated (and tested) applications scan be used. 4. Introduce security procedures for critical spreadsheet applications that limit access to authorized persons. 5. Introduce back-up facilities for spreadsheet applications so that previous versions can be restored in case of loss off data. 6. Monitor the modifications in spreadsheets so that unwanted modifications will be detected.



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Sponsors Callens Pirenne Forensic & Dispute Services www.callens-theunissen.com Deloitte Forensic & Dispute Services www.deloitte.be De Vocht Expert Services www.devocht.be Ernst & Young Fraud Investigation & Dispute Services www.ey.be i-Force www.i-force.be

INSTIFIN forensic auditors www.instifin.com J. Lippens, S. Rabaey & Co. www.gti.org KPMG Forensic www.kpmg.be

PricewaterhouseCoopers Forensic Services www.pwc.be Joris Rycken & Co www.jorisryckenenco.be TCLM www.tclm-rsm.be Vias DFK www.vias.be



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Colofon

IFA Institute of Forensic Auditors Instituut van Forensische Auditoren vzw Institut des Auditeurs de Fraude asbl

National Professional Federation Nationale Beroepsfederatie Fédération Nationale Professionnelle

www.forensicaudit.be

Postal address: Koningsstraat 109-110 rue Royale 1000 Brussels Belgium

Secretary’s office: Delphine Gorloo T: +32 (2) - 219.23.40 [email protected]

VAT-number BE-0475.133.516 KBC-Bank number 427-5164381-58 District Court Leuven



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IFA NEWSLETTER. The Institute of Forensic Auditors invites you to its Christmas Drink! Date: December 17 th, h

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