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Certified Technology Banking Fraud Expert
Certified Technology Banking Fraud Expert (CTFE) is the part of Banking frauds certifications customised by Fraudexprss. Typically, CTFEÂ is a banker, ITES or banking professional or a banking or IT consultant who has undergone training to become an expert in the technology banking frauds domain, forensic auditing related to technology banking sector, litigation support and investigative accounting.
This program is one of the foremost certification focusing on the technology frauds in the banking and financial institutions domain.
This program is updated with the latest techniques of laundering with the digital currencies.
Certified Technology Banking Fraud Expert
(CTFE) is a designation awarded by Indiaforensic Center of Studies and marketed by Fraudexpress. This is a useful certification for the professionals looking to understand the technology frauds in the banking sector such as the ATM frauds, Credit card frauds and other remittance frauds. Apart from these traditional tools, the course speaks about the new age technology tools like Digital Currencies.
Syllabus for this program is
- Classification of ATM Schemes
- Categories of ATM frauds
- $45 Million – ATM heist
- How to prevent the ATM Frauds
- Credit Card Frauds
- Classification of Credit card Schemes
- Application frauds
- Transaction frauds
- Prevention of the card not present frauds
- Laundering with Digital Currencies
For more information on this certification program please contact us on +91-8149133389 or write to us on himanshu.kulkarni@indiaforensic.com
Forensic Rating Model to identify creative accounting
Financial Statement Frauds are becoming rampant in India. Satyam accounting scandal exposed the extent to which the management can go to manipulate the numbers in financial statements. Satyam scandal also revealed the methods used in manipulations of financial statements. The Forensic Rating Model is built on the J-Score obtained after analyzing the early warning signals of corporate frauds.
In the wake of growing incidences of the financial statements frauds, Indiaforensic designed a model whereby it becomes easier for the stakeholders of the financial statements to understand the risks involved in the financial statements.
The Forensic Rating Model
We term the financial forensic model as J-Score, which is a mathematical model that uses multiple financial ratios to ascertain the financial irregularities. These ratios are weighted by coefficients to identify the nature of irregularities. It is authored by CA Mayur Joshi in the year 2011. J-score which is named after Mayur Joshi, surmises that companies are incentivised to manipulate financial statements when they have high sales growth, deteriorating gross margins, rising operating expenses and rising leverage. However, the J-score is built on the presumption that it is difficult to manipulate the cash flows.
“You can pretend to be rich but its hard to pretend that you are cash rich”
They are likely to manipulate profits by accelerating sales recognition, increasing cost deferrals, raising accruals and reducing depreciation.
History of Forensic Rating Model
In 2008, Indiaforensic started a research in association with one of the accounting bodies to identify the early warning signals of corporate frauds. This study resulted into a finding that more than 1200 companies in India could be indulging into creative accounting practices. In the year 2020, when we reviewed these companies many of them which were classified as high risk have been out of business and most of them are trading below Rs.10. The J-Score model is helpful in identification of potential red flags in the financial statements.
After the Satyam Scandal broke, this research gained significant attention, as it was one of the first few studies which predicted such massive scale creative accounting practices.
The findings of this study were used to create a probability score, which was termed as the J-Score in the year 2011. This study highlighted the importance of the Cash flows and the primary foundation of the J-Score is cash flow comparison with other financial statement parameters.
Risk Rating Model
It was based on the extensive financial research of more than 800 thousand Indian companies, and millions of individuals who represent these companies.Â
According to this research any business is associated with at-least thirty types of different risks in India and the rating model assesses every company on these thirty parameters. We have built our own database of High Risk Customers who fall into one of these 30 categories. This helps us to provide the rating to the companies based on their risk scores.
Financial Forensic Model + Risk Rating Model = Company Rating
Output of these two scores defines the company as High Risk, Medium Risk or Low risk.
CFAP – Certified Forensic Accounting Professional
Satyam scandal was broke out and the demand for the forensic accountants increased suddenly. It was estimated that India will need more than 6000 forensic accountants in coming few days. We just have 600 members who are forensic accountants.
Forensic Accounting is becoming important in India in the wake of the perpetual investments by the foreign countries. Certified Forensic Accounting professional is a the flagship antifraud certification offered by Indiaforensic to the members who fight frauds in various capacities and in various industrial domains including manufacturing, IT/ITES and other service sectors.
This certification is also suitable for the Chartered Accountants, Cost accountants, Company secretaries or the Public Accountants willing to fight the frauds and act as forensic accountant. This course is open to students in not only India but also to students in other countries. There will be however exemption to the international students from the legal aspects of the Forensic Accounting. Laws covered in the syllabus are specific to India. However the classification system of Forensic Accounting and the prevention methods play a crucial role hence these topics are same for national as well as international students.
People from esteemed organizations have done the CFAP like KPMG, Deloitte, Ernst and Young, Fullerton India, Max New York, Axis Bank, HDFC Standard Life, Government of India, Tata Motor finance and the list continues.
You can visit us
24/7/365 access to courses on internet (online courses) so register as per you convenience. For further details contact education@indiaforensic.com
Forensic Accounting Services offered
Gaurav Gupta is an accountant. But his work has very little to do with closing the monthly balance sheets and P&L or signing the payroll cheques. While typical bean counters hours polishing the financial statements the forensic accountants look beyond the ledgers to furrow out corporate wrong doings.
Though it’s a kind of work that takes a special kind of accountant it creates interest in students only if it yields them good salaries and job satisfaction. Various surveys conducted on this topic has revealed that the forensic accountants earn 30% more than their colleagues having no forensic accounting background.
Forensic accounting is the hot career in USA. Many magazines and online newsletters keep on posting these views. But to accept forensic accounting as career one need a lot of guts. One need to dare beyond your routine accounting and auditing work. You need to think beyond numbers. It is really an exciting career.
Investigation consultancy
While financial statement scandals of Xerox,WorldCom have brought forensic accounting into limelight it accounts for only one fifth of total work. Corporate investigations into expense and purchasing frauds is the hot cake followed by the siphoning of funds also being relatively frequent.
Due to the increased sophistication of fraud and the requirement of prior experience in conducting fraud investigations, organizations have begun to realise that it is best for an expert who is independent and unbiased to conduct an investigation.
The overall objectives in a typical investigation are to
- Investigate and determine if the alleged material financial irregularities and/or improprieties have occurred
- Attempt to quantify whether or not any of these alleged financial irregularities resulted in a monetary loss
- Attempt to identify persons who could be responsible for the aforesaid irregularities and/or improprieties
- These kind of services are required by the Banks, Corporates, Regulators such as RBI, SEBI and law enforcement officials.
Fraud Risk Assessment
Operational Risk is an integral part of business. Managing the risk of fraud is a crucial and integral part. The upcoming regulations BASEL-II accord and the Sarbanes Oxley Act are the bi products of Fraud risk. A fraud risk assessment is aimed at creating an environment that frustrates the fraudster. Interaction of the clients with the Fraud Risk experts helps to leverage off the knowledge of the cultural and working environment and also the industry knowledge. This approach allows for an immediate buy-in on the recommendations made, as the client himself has been a part of the risk assessment exercise. The corporate kings of our county require these services.
Due Diligence
Due diligence enable the clients to enter a foreign market or open a foreign operation; seek new sources of capital; recruit new dealers, franchisees, or distributors; licence their product or services to another company; establish a strategic alliance or joint-venture partnership; invest in a business; acquire or merge with another business; appoint directors; extend credit. These kinds of investigations can also be carried out with the aid of the forensic accountant.
Information Security Risk Assessment
Information security is the buzzword of the new era. It includes formulating policies, practices and procedures to prevent any loss of sensitive and confidential information. These services address the concerns of clients in respect of safeguarding their critical information against unethical and illegal attempts by rivals and interested parties. Forensic accountants with technology exposures are the best-fit candidates for the role of the Information security assessment. In USA Sarbanes Oxley act has compelled the companies to get assessed their Information security systems. Generally software companies prefer the technology forensic accountants.
Asset Tracing
Stamp Paper scam was the biggest scandal amounting to over 30,000 crores of rupees. However when Telgi was arrested he had assets worth few billions of Rupees.
The tracing of the bank transactions convertible into the tangible asset is important since the assets are sold out to repay the losses. Understanding the bank transfers is a technical job which has to be looked with the suspicion. Involvement of Benami Transactions into the creation of assets make it even more difficult for the law enforcemnt officials to recover the assets.
Tracing and identifying client assets that are in the unlawful possession or control of third parties is the area that is looked after by Forensic Accountants worldwide.
When a loss arising from fraud is detected, an organisation has the option of turning to forensic accountants to trace the assets created out of the illegal proceedings.
Vendor monitoring
Companies who are involved in the production and marketing of consumer products internationally have become increasingly aware of the importance of monitoring the labour and business practices of their vendors.
Similarly the bankers in our country are also tracking their borrowers with full concentration. There are not less incidences where the companies across the world have duped the banks in the working capital loans.
Money laundering compliance programme
In the wake of Money Laundering Act’2003 the compliance program is the need of an hour.Money Laundering is a serious crime associated directly with the terrorism
The compliance programme may addresses four areas:
- Â Â Compliance regulations
- Â Â Â Designation of a Compliance officer
- Â Â Â Independent Testing
- Â Â Â Training
This programme provides our clients with a highly trained, motivated and diligent work force. It further gives them the comfort of proof that they have been diligent, in their compliance programme.
Litigation Support
The renowned Forensic accountants provide opinions on technical questions of audit, accounting, taxation or other areas. It may also involve quantification of losses in the context of fraud, disputed business valuations, loss of profits, insurance claims, intellectual property disputes and in many other situations.
Functional Consultancy
The software companies have developed the internal audit tools for the compliance with the SOX provisions. Similarly a pre-defined set of the rules for identification of the red flags of the frauds in a software is not far away. To design such softwares the functional consultants with Forensic Accounting Background are preferred.
To sum up the forensic accounting field is the boom of tomorrow in the field of accountancy. The collapse of Enron gave birth to Sarbanes Oxley Act and also proved to be a boom time for the forensic accountants. Mishaps worldwide also increase the demand of forensic accountants.