2. RYAN SCHNOBRICH, C.P.A., C.I.A.
IRREGULARITIES BY
RYAN SCHNOBRICH, C.P.A., C.I.A.
INTERNAL AUDITOR
x28297
inside.sou.edu/ia

3. Irregularities can be financial or non-financial.
Irregularities may be as simple as errors
or as complex as fraud.
Irregularities are something that appears unusual
simply not the way you expect it to be.

4. Sometimes irregularities jump out at you, sometimes you trip over them, but generally, you have to be aware of what they are and l k
for them if you want to see them.
Irregularities are generally internal to our operations, or someone external to SOU trying to manipulate us internally to their benefit.

5. Non-Financial Irregularities:
Misstatements
Omissions
Favoritism
Nepotism
Navigating Policies or Procedures
False Information to Gain Employment
Using SOU Relationships for Personal Gain
Socially Engineering Access to Restricted Information or Physical Spaces

6. Intentional Misstatements:
Purposefully Poor Accounting Estimations
Inaccurate Time Keeping
False Reimbursements
Inappropriate Disbursement
Misleading Results
Conflict of Interest
Omissions cause you to arrive at a different decision/conclusion.

7. FAD.001 - Financial Irregularities
“Irregularities are intentional misstatements or omissions of information related to financial transactions that are detrimental to the interests of the university. This may include violations of laws, rules, policies or procedures.”

8. Environmental Risk Factors:
Lack of transparency;
Exploitation of power differences;
Insufficient or ineffective supervisory or internal control functions;
Lack of training, communication, resources or expertise;
Inadequate consequences; and
Unwillingness to get involved.

9. Exposures to Irregularities that may lead to fraud:
Internal control failures
Procedures that are ineffective, not documented, trained on, or irregularly followed
Bypassing
Management override
Policy violations

10. Detect irregularities:
Be focused, look, listen and use professional skepticism
Guidelines and process documentation that clearly communicate what control activities are expected; supported by regular training.
Healthy communication
Internal Audit
External Audit

11. Look for discrepancies that look like what may potentially be misappropriation or corruption:
embezzlement
forgery
Fabrication, falsification or false representation
lapping
skimming
theft 

12. Signs of collusion that may be:
Conflict of interest
Bribery
Improper Discounts
Extortion
Kickbacks
Bid Rigging
Split Purchasing 

13. Deter irregularities:
Be focused, look, listen and use professional skepticism
Risk assessment
Vulnerability analysis
Healthy communication
Training
An ethical tone at the top
A personal commitment to ethics
Whistleblower protection
Process evaluation
Automation/digital processing
Response plans

14. Internal controls that prevent irregularities:
Inspection
Re-performance
Reconciliations
Approval process
Check & balances
Segregation of duties with clear roles and responsibilities
Management oversight
Data analytics
Mandatory colleague-covered absences
Physical or technical security

15. Prevent External Intrusion:
Phishing
blanket s
malware
impersonation
spear-phishing
whale-phishing
Social Engineering
Manipulation of Support Documentation

16. Designated Administrator:
Greg Perkinson, VP Finance & Administration
x26319 (Susan)
Unit Administrators:
Steve Larvick, Director of Business Services
x26594
Brian Kinsey, Director of Service Center
x26413
sou.ethicspoint.com