Understanding Procurement Fraud

The procurement process encompasses all activities relating to the purchase of goods or services by an organization. It can range from small, one-time purchases to multi-year, multi-milliondollar contracts. Procurement fraud is any fraud relating to a company purchasing goods, services or commissioning construction projects from third parties.

Given the volume of transactions that are typically carried out through the procurement function, it is one of the accounting cycles most targeted by fraudsters. Knowing what procurement schemes are most commonly carried out and the ‘red flags’ or potential indicators to look out for will greatly help to mitigate this known risk at your organization. It also increases the likelihood of detecting such schemes, should they be occurring.

Participants will get an understanding of the following:

• What is procurement fraud?

• Profile of a typical fraudster

• Most common procurement fraud schemes

• The ‘red flags’ of procurement fraud

• Fraud prevention & detection