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Toronto Chapter Newsletter

Volume 11, Issue 7

July 1, 2011


March 2013

Penny Hill, Chapter Administrator:

Brenda Young, CFE, Newsletter Editor:

A Message of Farewell I love little inspirational quotes. One of the most enjoyable aspects of creating the monthly newsletter was searching for just the right one to finish off the last page. With that said, I found the following: “When a great moment knocks on the door of your life, it is often no louder than the beating of your heart, and it is very easy to miss it.” - Boris Pasternak I like this one because it relates to my life and a new opportunity. In March, I will be moving to Nova Scotia where I will be taking up a new position within my company. Leaving Ontario, and specifically Toronto, was not an easy decision. I will be leaving behind a number of great friends and family. I will be going to a place that holds no ties for me. It’s an adventure. This adventure comes at a price. As I said, I will be leaving behind friends and family. I will also be leaving behind the Toronto Chapter of the ACFE. I have had the honour of serving on the Board of Directors as Director and as Vice President. I have also had the honour of serving as the first Newsletter Editor. Although I would like to thank by name the people over the past five

years who have helped me build and evolve the newsletter, there are far too many; from the folks who contributed articles, helped through proof reading, or offered their support – and sometimes criticism. All their contributions have been most appreciated. Most of all, I would like to thank your President, Astra Williamson. Without her support and encouragement, I would never even have gotten started! I will miss the ACFE, all the folks who come out regularly to our meetings and working on the newsletter. However, I leave knowing the newsletter is safely in the hands of Brenda Young who will, no doubt, make it even better! One last quote: Opportunities are like sunrises. If you wait too long, you miss them. - William Arthur Ward. Thank you and farewell, – Kathleen Watson We wish to thank Kathleen for her contributions to the ACFE Toronto Chapter. We wish her much success in her new ventures. – Astra Williamson President, ACFE Toronto Chapter

Coming Events March 21, 2013 – IIA presents: South West Ontario Education Series – Corporate Fraud Prevention, Detection and Investigation for Internal Auditors (Cambridge). Guest speakers: Paul Ross & Ray Porter of KPMG Forensics. Details?ID=2071&EID=14616 March 26, 2013 – Toronto Chapter ACFE & ACCA presents: Employee Fraud: Avoiding Backlash to the Investigation (Toronto). Guest speaker: Andrew Kautz, National Claims Manager, Central Risk and Insurance Management Services Ltd. March 26-27, 2013 – IIA & ISACA presents: Canadian Conference on IT Audit, Governance and Security (Toronto). April 11, 2013 – South Western Ontario Chapter ACFE presents: Money Laundering / Terrorist Financing – The Fraud Connection (South Western Ontario). Guest speaker: Chris Galloway, National AMC / ATF Officer Central 1 Credit Union. April 23, 2013 – Toronto Chapter ACFE presents: Digital Forensics – An Investigators View (Toronto). Guest speaker: Sandy Boucher, CFE, Senior Investigator – Grant Thornton LLP. April 23-24, 2013 – IIA presents: Government Relations Committee Education Session – Performance and Value-for-Money (VFM) Auditing. From Canadian & American Perspectives (Toronto). Guest speakers: Stephen Morgan, President of Excellence in Government Accountability and Performance Practices Inc. & Ron Foster, Auditor General, City of Oshawa. Details?ID=2071&EID=14617

Social Media Audit By Ryan Watt

The Social Media Audit Social media has revolutionized the way the world connects, communicates and consumes on a daily basis. With its emergence comes the increased importance of organizations to consider a social media audit. An audit of all social media channels and activity can determine whether an organization is utilizing various social media platforms. By analyzing one’s social media presence, an organization will gain a higher appreciation for the social media space and more importantly, will develop a better understanding of best practices. Here are some useful starting points when considering a social media audit that resonated with me through my research:

Social Media Strategy •

Does the organization have a social media strategy? If so, is the strategy being followed by users? Also, does the organization have the proper controls in place? Senior management should be aware of employees/individuals who have access to social media accounts. Their involvement and awareness regarding potential opportunities and risks of social media is also an important factor.

Active and Appropriate Social Media Channels •

Examine each social media platform the organization is using. Are they maximizing the platform in the best way for the intended audience/client trying to be reached? (e.g. an artist who shows his/her work in a gallery may want to consider utilizing Instagram (photo sharing). This would allow a greater audience to view his/her work that may not otherwise be exposed to, or take the time to view in a traditional gallery setting).

Branding •

Is the branding consistent throughout all social platforms as it relates to the organization’s visual identity standards, (e.g. are the landing pages consistent on all platforms)? Is the language, tone and copy also consistent?

Frequent and Consistent Use •

Does the organization utilize all their social media platforms on a consistent basis? In other words, is posting frequent? It is important to gather momentum by posting regularly to engage the audience/client in an ongoing basis. Inconsistent posting will result in a disinterested audience.

Adhere to Mission and Values •

Is the content being shared consistent with the organization’s mission and values? Social Media communications should cultivate a positive image of an organization and its presence should be an extension of your offline services. The brand promise should be communicated consistently over all platforms.

Continued from page 2

Level of Engagement •

The level of engagement of social media platforms is important when examining the success or failure of an organization’s social media strategy. The level of engagement can be measured in various ways and depends on what platforms are being used. Comments on a blog, views on YouTube, likes on Facebook, retweets from Twitter, re-blogs from Tumblr and pins on Pintrest are some examples of how the social media community connects and interacts. The key is presenting the audience/client with interesting content that will keep them engaged while at the same time giving exposure to the organization’s overall message.

Rod Winters, Global Chairman of The Institute of Internal Auditors (2009-2010) has said, “As the use of social media continues to transform within organizations, it’s not a matter of if but when internal auditors will need to play a role.” Inspired by article, How To Conduct A Social Media Audit.

About the Author Ryan Watt is an audit associate with The Salvation Army, Territorial Headquarters..

Want to learn more about how you, as a fraud examiner, can use social media? Here’s an excellent article by Peter Goldman, CFE, in the February 2012 issue of the ACFE’s The Fraud Examiner entitled “Social Media Sites: The Fraud Examiner’s New Best Friend … But “Friendship” Can be Risky”. Here’s an article on social media fraud by Jean-Francois Legault in the March/April 2008 issue of Fraud magazine entitled “’Web 2.O' Social Network Sites Can Foster Fraud”. th

At the 24 Annual ACFE Global Fraud Conference in June of 2013, Jean-Francois Legault is presenting a pres-conference session on Intellectual Property and Personal Information: Investigating Loss, Leaks and Theft. There’s also a session during the conference by Nicole Bocra, CFE, entitled “Exploiting Internet and Social Network Intelligence to Enhance Investigations”. Auditing Social Media: A Governance and Risk Guide by: J. Mike Jacka & Peter R. Scott. A guide to the mastery of social media guidance and risks to avoid.




South Western Ontario



South Western Ontario

Toronto Chapter ACFE Membership A reminder to all Toronto Chapter ACFE members: Membership for 2013-2014 year is due at the end of March. The registration form can be downloaded from our website Payment for membership can be made via PayPal for your convenience. Membership in the Toronto Chapter of the ACFE provides a number of benefits and opportunities. Members have the opportunity to: •

Gain CPE (continuing professional education) credits and maintain your CFE designation through programs and chapter sponsored events;

Increase your knowledge on fraud prevention, detection and deterrence methods through chapter sponsored dinner meetings and professional key guest speakers;

Network and meet with others who are interested in the fight against fraud;

Share solutions and seek advice for challenges from other professionals;

Take advantage of membership discounts;

Share your knowledge, experience and enthusiasm through guest speaking engagements; newsletter submissions or; through mentoring someone up and coming in the field of fraud; and

Access a library of fraud related materials free of charge.

Membership is open to all who have an interest in the prevention, detection and deterrence of fraud. Membership application forms can be found on the Toronto Chapter website Further information can be obtained by contacting Penny Hill, Chapter Administrator; email Penny Hill at

Did You Know…

The Combating Counterfeit Products Act was introduced in Canada on March 1, 2013. The Act is to assist Canada Border Services Agency (CBSA) in ceasing the movement of counterfeit product across the borders. In 2012, the RCMP seized over $38 million dollars in counterfeit products. Counterfeit products (fake or knock-off products of original branded products) are used to fund organized crime. The US Customs and Border Protection Agency (CBP) identified over $1.3 billion dollars in confiscated / seized counterfeit products. The top five products seized by CBP in the last year: • • • • •

Footwear at $103 million; Consumer electronics at $104 million; Apparel at $133 million; Watches & jewelry at $187 million; and Handbags & wallets at 511 million.


Ex-Montreal hospital head plotted with ex-SNC execs to defraud government: investigators In the fall of 2008, Arthur Porter stepped into a limousine in Montreal and set off for Rideau Hall. There he was sworn in as a member of the Queen’s Privy Council, a designation that would allow him to sit on the committee that monitors Canada’s spies and how they gather secrets. Read more

Only 12 citizenships revoked after 18-month fraud crackdown Efforts to combat citizenship fraud are creating lengthy backlogs for would-be Canadians while at the same time only slowly weeding out bogus citizens, statistics from the Immigration Department show. Read More

Corruption inflicts psychological wound on Montreal The most surprising element of the police raid on Montreal City Hall was that there were still residents of Canada’s second-largest city left shocked by the events. Read More

Your Board of Directors President Vice-President Treasurer Secretary Director Director Director Director and Immediate Past President Director

Astra Williamson, CGA, CFE Linda Lister, CGA, CMA, CFE, DIFA William Vasiliou, CGA, CFE, CCRA, CREA, DAC Tom Eby, CA, MBA Bruce Armstrong, CA, CFE Erik Bettencourt, CMA, CFE Graham Ospreay, FACFE, CSP Steven E. Silverberg, CA, CFE

Jeffrey Weigensberg, CA, CFE, CFF, CPA, CA.IFA, CI

Ex Officio Members Marcus Li, CCE, CISA, CISSP, CFE Alexander J. Wright, CD, BA, MB, A, CFP, RFP, Capt. (Retired) Kathleen Watson Brenda Young, CFE

March 26, 2013 Employee Fraud: Avoiding Backlash to the Investigation Internal Investigations can be challenging even for the most experienced investigator. What at first appears to be a "simple" employee theft can turn into allegations of wrongful dismissal and civil litigation. This presentation will offer an insider's look at how internal investigations can quickly spin out of control. Andrew Kautz is the National Claims Manager for Central Risk and Insurance Management Services Ltd, a national insurance brokerage. Andrew has over 25 years of investigative experience and since 1991 has dealt primarily with fidelity bond, corporate errors and omissions and directors' & officers' liability claims. His work has taken him across Canada and into the United States investigating frauds ranging from a few hundred to several million dollars, including loan frauds, Ponzi schemes, phony vendor scams and investment dealer frauds. In addition to investigation, Andrew pursues recovery from perpetrators as well as third parties that may have played a role in the fraud scheme. These efforts include recovery of funds from Nigeria that had been sent to this country by a dishonest employee in response to one of the infamous "Nigerian Letters". Andrew is a member of the Faculty of the Association of Certified Fraud Examiners and lectures regularly on fraud related topics to a wide range of groups including fraud investigators, risk management professionals and members of the insurance industry. He has designed policies and procedures related to fraud prevention and was a contributor to the Association of Certified Fraud Examiners publication, Fraud Casebook: Lessons from the Bad Side of Business, a selection of fraud case studies.

Andrew Kautz

April 23, 2013 Digital Forensics – An Investigators View The session will examine current practices and tools in the world of digital forensics using layman’s English with no technical jargon. The purpose of the presentation is to highlight the many ways in which the digital forensic expert is now invaluable in almost any investigation, underlining each aspect with real life examples. The session will provide investigators with thoughts and hints as to how they can get the most out of the digital evidence in their cases by understanding what is possible and pushing their forensic experts to excel in their craft. Sandy Boucher is a seasoned investigator who has 29 years of experience in both the public and private sectors. Starting his career with the Royal Hong Kong Police, where he worked for 12 ½ years attaining the rank of Superintendent, Sandy specialized in Asian organized crime, narcotics and money laundering investigations. During his time with the force, Sandy received both Commissioners and Commanding Officer’s commendations for his work, as well as commendations from eight overseas police forces. He managed and conducted a broad range of high level investigations including a number which involved corruption during this period. Sandy came to Canada and the private sector in 1995. Sandy is a specialist in fraud and corruption investigations, background due diligence enquiries, asset tracing and recovery, managing major investigations and security. Sandy now works on detecting and preventing fraud and corruption and divides his time between investigating such cases and advising organizations on how to prevent them from occurring. He has led and conducted a wide range of investigations including a number of high level corruption probes and has testified around the globe in both civil & criminal courts. Since 2009, he was worked in the forensic group of Grant Thornton LLP where he heads the national investigative research, and anticorruption practices. Sandy is a frequent and accomplished speaker on issues relating to his practice and experience, particularly investigations, due diligence, and anti- corruption work. He has addressed many large groups including CA associations, specialist training seminars and business groups.

About the ACFE: The ACFE is the world's largest anti-fraud organization and premier provider of anti-fraud training and education. Together with more than 50,000 members, the ACFE is reducing business fraud world-wide and inspiring public confidence in the integrity and objectivity within the profession. Visit for more details.

Mark the date: May 14, 2013 – Toronto Chapter ACFE presents: Member Appreciation Night. Keep posted for further details.

“Fraud and falsehood only dread examination. Truth invites it”. ~ Samuel Johnson

ACFE Toronto Newsletter March 2013  

The ACFE is the world's largest anti-fraud organization and premier provider of anti-fraud training and education.