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ALRAQABA . ISSUE 15
The Association of Certified Fraud Examiners (ACFE) estimates that worldwide, organizations lose 5
percent of their annual revenues to fraud. This figure translates to a potential total fraud loss of more
than $3.5 trillion. While a 5 percent loss in a small program may not be worth further study, when
considering fraud in the country’s largest source of revenue—in particular
the Petroleum Industry
in
Kuwait—the issue is critical.
The focus of this strategy paper is on the petroleum industry in Kuwait and the United States
of America. This paper will help the reader understand the importance of forensic audits and
investigations in revealing fraud and mitigating fraud embezzlements in the petroleum industry.
Case studies are extremely helpful in understanding a topic because they are niche-specific. Thus,
this paper has two case studies one from each country, explaining important cases in the petroleum
industry and how were they resolved.
Purpose and Vision of the strategy paper
The main purpose of this strategy paper is to highlight the importance of using forensic audits
and investigations to reveal fraud and mitigate fraud embezzlements, specifically in the petroleum
industry. Approaches implemented by the GAO to identify potential fraud, waste and abuse will
provide a framework for recommending an action plan for the State Audit Bureau to implement.
Fatimah Nabil
Senior Auditor - Second Internal Audit Division
FORESNIC AUDITS
AND INVESTIGATIVE
SERVICES
Anti-fraud unit revealing petroleum
industry fraudsters
Articles
