CHAPTER 8Canada

REGIONAL FRAUD TRENDS

The 2018 Report to the Nations on Occupational Fraud and Abuse issued by the Association of Certified Fraud Examiners (ACFE) includes 82 cases from Canada that were investigated between January 2016 and October 2017. These cases caused a median loss of US $200,000 per case.

As noted in Exhibit 8.1, corruption is the most common form of occupational fraud committed in Canada; 40% of cases in the region involved some form of corruption, which is twice as frequent as any other type of fraud scheme. Billing schemes are the second most common category of occupational fraud, occurring in 20% of the cases in Canada. In addition, nearly one-third of fraud schemes in Canada are detected by tip, making this the most frequent form of fraud detection in the region (see Exhibit 8.2).

Bar graph shows corruption, billing, noncash, financial statement fraud, skimming, cash on hand, expense reimbursements, check and payment tampering, payroll, register disbursements and cash larceny where corruption is highest at 40 percent.

Exhibit 8.1 Scheme Types – Canada

Bar graph shows tip, internal audit, management review, other, surveillance/monitoring, external audit, account reconciliation, document examination, by accident and IT controls, where tip is highest at 32 percent and IT controls is lowest at 1 percent.

Exhibit 8.2 Initial Detection Method – Canada

The 2018 Report to the Nations also examines the anti-fraud controls that were present at victim organizations at the time the frauds being analyzed were committed. Exhibit 8.3 shows that a formal code of conduct is the most commonly implemented anti-fraud control among victim organizations ...

Get International Fraud Handbook now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial