The American Anti-Corruption Institute (AACI)

The AACI issued an updated public profile including text and videos. 

The Effect of Corruption on Policy Optimization

I will participate in this remarkable conference that will be conducted in Amman - Jordan during May 23-24, 2016 

On day 1, I will chair a session titled " Public Private Dialogue ....a participatory approach toward achieving economic growth"

On day 2, I will present a paper titled " The Effects of Corruption on Policy Optimization"

يوم جديد - إطلاق مساق تعليمي عن ‫‏مكافحة الفساد‬

The American anti-Corruption Institute (AACI) cooperates with Aqaba University of Technology to launch an innovative anti-corruption three credit hours course. This course will initially be offered as a required course at the university and gradually offered throughout all Arab universities in the Arab countries.

Mike J. Masoud, the technical advisory director - the Middle East and Africa joined Prof. G. Abanda for a Jordan TV interview on May 16, 2016.

Certified Anti-Corruption Manager: CACM - News and Update

The board of advisors approved earlier last month to continue providing the grandfathering provision of the CACM. For more information, please visit our website at http://theaaci.com/cacm-credintial.html

A Greek tragedy and an EU crime

Cayman Financial Review
By: L. Burke Files & Mike J. MASOUD 
April 22, 2015

Let’s start with being provocative: The utterly corrupt path leading to the Greek debt default theater is filled with faux EU pressures, chicanery and bribes, overt and implied, by all 11 sides. 

So what are the corrupt paving stones that make up the path to debt perdition?

1981 

It all started with Greece’s membership in the European Community. The EU membership entitled Greece to European Regional Integration funds, the Delors Package I. It also brought new sources to borrow from abroad. In 1981 Greek public debt was €8.5 billion (22.8 percent of Greece’s GDP), by 1991 it was €48 billion (71 percent of GDP). This is a full 10 years before Greece was made a full member of the EU. Did Greece have the institutional capacity to absorb these funds without corruption? Did anyone think to ask?

January 2001 

Greece became the 12th member of the eurozone. While many fretted about such an economically weak country joining the euro, Wim Duisenberg, then president of the European Central Bank, assured all that Greece, with the EU’s help, would continue with improvements to its economy that would make euro membership appropriate.

At the time, Greece touted its fiscal reforms to cut the government budget deficit, privatizations and labor market reforms. Today those are the same areas where the troika has demanded action and the Greek government resisted.

2004 

Greece admits it may have fudged its bona fides a bit to gain access to the EU club. It seems that since 1999 Greece has not met the deficit target of 3 percent of GDP that applies to all prospective and current members.

As commentators have pointed out, this was in part a consequence of a toothless Eurostat, the EU agency that monitors economic statistics, which was wholly reliant on the data provided by the national governments.

As Matina Stevis pointed out in The Guardian in 2011, “In a time when the EU issues regulations on the permissible size and shape of fruit, there are no excuses for not having in place a strict framework for the generation of statistical information.”

2004 to 2009 

Greece is a big spender. Athens hosted the Olympics at extravagant expense. The estimated cost of the Olympic Games is a stunning $14 - 15 billion. No game in the history of the Olympics has lost more than a tenth of that. Associated Press reported in 2012 that eight years after the Olympic Games many of the facilities were left vacant and rotting.

Many Greeks, even the head of the International Olympic Committee, say hosting the 2004 Olympics contributed to the country’s debt crisis. The Olympic Games was such a bank buster that it was the tipping point starting Greece’s downward slide into debt perdition.
 

During this time, the Greek government was the third largest arms importer after China and India. As part of an earlier rescue program, Greece agreed to cut its defense spending from over 7 percent of GDP to 4 percent of GDP, which is still twice the euro-zone average. In the three years leading up to the bailout, 2007 through 2009, Greece averaged over $10 billion per year in military spending. Who were the winners? The French and German arms manufacturers. In fact, Greece was Germany’s largest arms buyer for this entire time period.

Elected in October of 2009, Georgios Papandreou’s government within days discovered that the prior administration had been “playing with the books” and the Greek deficit as a percentage of GDP was revised and doubled overnight to 12.7 percent of GDP – more than 300 percent over target. At the end of this five-year spending party, Greece became the first nation to have its sovereign debt rating cut to below investment grade.

2010 

This was the year of bailout for the county. Papandreou’s administration cut the budget by 10 percent, froze wages and increased taxes.

Continue reading

Proficiency and Professional Judgment Documentation: the Independent Auditor’s Responsibility

Proficiency and Professional Judgment Documentation: the Independent 

Auditor’s Responsibility

Mohammed J. Masoud, CPA, CACM, CFE, CICA, MBA

The American Anti-Corruption Institute (AACI)

Invited paper presented at the

The Second Accounting and Auditing International Conference

Organized by

 The Palestine Association of Certified Public Accountant (PACPA)

Ramallah – Palestine

May 28-29, 2014

Abstract

This conference paper conducts a review of the published auditing literature with respect to the responsibility of the independent auditor[1] regarding the required level of proficiency she/he should possess in conducting a financial statements audit. It also reviews the independent auditor’s responsibility in documenting her/his professional judgments[2] reached for in a financial statements audit.  The objective of this paper is to address the challenges the independent auditor faces to comply with relevant International Standards on Auditing (ISAs); specifically the International Standard on Auditing 230:” Audit Documentation”. Further, this paper discusses the interrelationships between the independent auditor’s proficiency and professional judgment and their impact on audit effectiveness. We found that independent auditors are requested and expected to document in sufficient and proper details in the audit file (work papers) not only the audit judgments of significant matters, but also to demonstrate that the audit was planned, performed, and opined using the optimum mix and the cutting edge of knowledge, education, experience, rules, regulations, and the relevant auditing and accounting literature.

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[1] The terms auditor and independent auditor are used interchangeably throughout this conference paper.

[2] Professional judgment; audit judgment, professional audit judgment; and judgment are used interchangeably throughout this conference paper.

LINKS

The complete conference paper: https://drive.google.com/file/d/0B4sCwzCGinSwdC1xYmdYMjBDbXc/edit?usp=sharing

The PowerPoint presentation of the conference paper: https://drive.google.com/file/d/0B4sCwzCGinSwTUQ0YjN2UGZtUGs/edit?usp=sharing

Birzeit Consulting - Qatar Workshop / Training Programs in Dubai

Birzeit Consulting - Qatar will be organization four significant workshop / training programs in Dubai during February - May 2014. These programs are totally designed, reviewed, and delivered by The American Anti-Corruption Institute (AACI). 

All of these workshops are offered for the first time in The Middle East and Africa. Further, they are tailored to meet the expected needs of the executive management and those charged with governance to play a proactive role in fighting fraud and corruption in innovative manners.

Details of these workshops are available at the official Facebook page of Birzeit Consulting ME. The programs are the following:

1- Fraud Prevention and Detection: The Role of Executive Management and Those Charged with Governance ©
    February 2-6, 2014; JW Marriott Marquis Dubai

2- Principles of Internal Control: Management Emphasis ©
    March 2-6, 2014; JW Marriott Marquis Dubai

3- Developing Effective Fraud Prevention Policy ©
    April 6-10, 2014; JW Marriott Marquis Dubai

4- Documents Examination: Basics for Management and Those Charged with Governance©
    May 4-8, 2014; Burj Al Arab

These programs meet The AACI's CPE guidelines. The AACI's qualified Certified Anti-Corruption Manager (CACM) may find this a great opportunity to satisfy their CPE's requirements.

Interested parties may contact Birzeit Consulting - Qatar at info-qatar@bzconsult.com

Fraud Prevention and Detection: The Role of Executive Management and Those Charged with Governance ©

Fraud Prevention and Detection: The Role of Executive Management and Those Charged with Governance ©  Overview
Level		Introductory
Duration		25 Hours (5 days)
Date and Time		February 2-6, 2014  (8:30 am 1:30 pm )
Prerequisite		None
Material Language		English
Language of Instruction		English
Program Material		Prepared and reviewed by The American Anti-Corruption Institute (AACI) using the latest relevant researches, literature, case studies, and corruption scandals from all over the globe including the Middle East and Africa. Tools and toolkits developed by The AACI, experts and researchers will be used during this workshop / training program.
Who Should Attend		Senior and Executive Management, Board of Directors, Board of Directors Committees, Internal Auditors, External Auditors, Risk Management, Fraud Investigators, Credit Department, Finance Managers, and Controllers. Lawyers and Management Consultants
Venue		JW Marriott Marquis Hotel Dubai; Dubai - UAE
Number of Delegates		Not more than 25 (Individuals)
Fees		Fee covers the following: ·         Training material ( paper and professional CD) ·         The AACI experts’ fee ·         Daily two coffee breaks and lunch ·         Certificate of attendance issued by The American Anti-Corruption Institute (AACI)  when a delegate attends at least 80% of the programs’ designated time ·         Waiver of the first year annual membership dues in The American Anti-Corruption Institute (AACI) – subject to approval of The AACI Certification Committee ( Application fee USD 50 is not waived) ·         Copy of The AACI President’s latest book “ Due Diligence For The Financial Professional, 2nd Edition”
Payment Mode		Contact Birzeit Consulting - Qatar at info-qatar@bzconsult.com
Registration and Payment		Contact Birzeit Consulting - Qatar at info-qatar@bzconsult.com
This event is totally organized by Birzeit Consulting LLC - Qatar, The AACI Exclusive Approved Vendor in the State of Qatar This training / workshop is prepared, reviewed and presented by the American Anti-Corruption Institute (AACI), Tempe, AZ-USA.
Value-Added Benefits of the Training / Workshop Participants ©
1.      Learn what makes a board of directors effective in its fight against fraud. You will also learn the role of the audit committee in preventing and detecting financial statements fraud. 2.      Learn the different kinds of liabilities a member of a board of directors is subject to. You will also learn what the board should do with respect to fraud and corruption to avoid being charged with negligence or gross negligence. 3.      Learn the catastrophic consequences that result from irresponsible ethical behavior. You will also learn how an ethical organization fights effectively fraud and corruption. 4.      Learn how a CEO can abuse her power, inhibit the effective information flow to the board members, and override internal control. You will also lean how the board can counterbalance the CEO’s dominance of the organization to prevent and deter fraud. 5.      Learn how to evaluate and assess fraud risk in an organization based on the qualitative characteristics of its board.   6.      Learn the benefits of designing and implementing fraud prevention policy. You will also learn why prevention is always better than detection. 7.       Learn what internal control is and how it plays a significant role in deterring, preventing, and detecting fraud and corruption. 8.      Learn and appreciate the importance of management anti-fraud training, management review, external audit, and internal audit in fraud deterrence and detection. 9.      Conduct brain storming and critical thinking analysis of relevant fraud prevention and detection case studies.			1.

What you will be able to do after the workshop / training program ©

They will become equipped with the knowledge and skills needed to play an effective role in preventing, deterring, and detecting fraud and corruption from the board room or executive suite. They will be able to mitigate the CEO’s domination of information flow to the board. Delegates will be able to assess and evaluate several kinds of internal controls that will prevent and deter fraud and corruption.

For more info, please visit: https://www.facebook.com/events/199118396958478/?ref=22

New York U.S. District Judge Jed Rakoff is well-known for questioning the federal government in judicial rulings.

Why haven't top business executives faced fraud charges for wrongdoing related to the national fiscal crisis? A senior federal judge questions whether weaknesses in the U.S. prosecutorial system could be to blame.

While not concluding that frauds definitely sparked the crisis, New York District Court Judge Jed Rakoff questioned in an essay for the New York Review of Books' Jan. 9 issue whether federal prosecutors gave other cases higher priority because they would take less time and resources to investigate and lead to high-profile trials or guilty pleas.

Rakoff, well-known for questioning the Department of Justice in judicial rulings, also called Department of Justice "too big to jail" concerns irrelevant because the worries referred to companies, not executives. And he theorized prosecutors might have shied away from charging top bankers and other executives with fraud because federal government policies before the crisis encouraged easier mortgage lending and home buying.

While not suggesting that government officials knowingly encouraged or participated in mortgage-related wrongdoing, Rakoff suggested "the government was deeply involved, from beginning to end, in helping create the conditions that could lead to such fraud."

"This would give a prudent prosecutor pause in deciding whether to indict a CEO who might, with some justice, claim that he was only doing what he fairly believed the government wanted him to do," wrote the judge.

Rakoff also questioned what he described as a decades-long trend toward prosecutions of business firms and other institutions rather than the executives who run them. The shift has been "rationalized as part of an attempt to transform 'corporate cultures,'" and often takes the form of deferred prosecution agreements, the judge wrote.

But in many cases, attorneys for a targeted firm assure prosecutors the company wants to cooperate and has launched an internal investigation. Prosecutors in some instances agree to delay seeking charges based on the company's guarantee to share all results from its inquiry.

The typical end result is a a deferred prosecution agreement that includes monetary fines against the firm and plans for stronger internal corporate oversight. Such an outcome pleases resources-strapped prosecutors and the company, wrote Rakoff. "Perhaps the happiest of all are the executives, or former executives, who actually committed the underlying misconduct, for they are left untouched," he wrote.

"I suggest that this is not the best way to proceed," added Rakoff, who argued that successfully prosecuting individuals is a stronger deterrence to future crimes.

The former federal prosecutor and private defense attorney told CNBC Tuesday he had offered his view as a citizen, not a judge. He joined the federal bench in 1996 after being nominated by President Bill Clinton. One of the most cited cases in which Rakoff, 70, challenged the government was his 2011 rejection of the Securities and Exchange Commission's proposed settlement of mortgage-related charges against Citigroup. The deal would have allowed the bank to settle "without either admitting or denying the allegations."

A federal appeals court is weighing the ruling, in which Rakoff concluded "there is an overriding public interest in knowing the truth."

Source: http://www.usatoday.com/story/money/business/2013/12/26/judge-rakoff-on-fraud-prosecutions/4206251/

المعهد الأميركي لمكافحة الفساد يتبنى رؤية في مكافحة الفساد تطال صنّاع ال...

Mike J. Masoud, the technical advisory director of The AACI in the Middle East and Africa addressing the questions of the CNBC Arabia during the launch event "Corruption Prevention in Financial Institutions" in Doha - Qatar on October 22, 2013.

The AACI Certification Program and CPEs

The AACI Certification Program and CPEs

The AACI Advisory Board approved a grandfather CACM certification path for eligible candidates. Except that the CACM candidate will not sit for the CACM exam, all the remainder eligibility requirements are still valid, required and expected to be completed by a CACM candidate before (s)he becomes qualified as a CACM.

The eligibility requirements to apply for the CACM are as follow: 

A CACM candidate shall

1. Have a bachelor degree from an accredited college or university, and

2. Have three years of experience in a managerial position accompanied with managerial responsibilities, and

3. Pass the Certified Anti-Corruption Manager ®©(CACM) ®©exam, and

4. Provide an assertion to non-prior indictment in any act to the discredit of the code of ethics of the Institute, and

5. Abide by the AACI code of ethics, and

6. Satisfy the AACI continuing professional educational (CPE) requirements, and

7. Maintain a good standing and membership in the Institute

If you require further information or would like to discuss your membership options, please complete our inquiry form and someone from the membership team will be in touch, alternately read the FAQs or you can telephone (602)- 235- 0956

The Latest Corruption and Fraud News:The AACI Flipbaord Magazine

I would like to invite my friends and colleagues to join my readers for The AACI Flipboard magazine http://flip.it/oJ8AM  and spread the word. You will find the latest corruption and fraud news, commentaries, trends, rules, laws, and regulations that impact the lives of so many people all over the globe.

If you would like to share your news or commentary and have it published in this magazine, please share it with me via FB, LinkedIn, or Twitter and let me know about it.

I do appreciate your comments and feedback.

Caveat: This is NOT the official magazine of The AACI and is not related with The American Anti-Corruption Institute. The AACI only has two official magazines: The Anti-Corruption Quarterly and The Corruption. For more information about The AACI, you may visit its website at www.theaaci.com

The American Anti-Corruption Institute (AACI) in the MENA Region

This is a short and partial coverage about the AACI participation in an international conference in Palestine, Middle East and Africa, in November 2012. — in Ramallah, Palestine.

Is Corruption Getting Worse?

...."The recent G20 round resulted in a strong set of recommendations to strengthen the fight against corruption. Through the B20 process, business leaders articulated recommendations to G20 governments across a range of areas including the development of collective action and sectoral initiatives, model codes of conduct to SMEs, good practices to incentivize self-reporting and common principles on enforcement of bribery legislation. Together, these recommendations can spur tangible efforts under a framework of support from countries among and beyond the G20, becoming the basis for a model legislative framework."......"The growing number of prosecutions and resulting fines as a result of the US Foreign Corrupt Practices Act and more recent UK Bribery Laws are setting a new bar for enforcement. Greater transparency is no longer an option, but an imperative to create sustainable competitiveness environments that serve the public and foster an ethical and competitive marketplace."

Source: http://www.huffingtonpost.com/robert-greenhill/is-corruption-getting-wor_b_2257016.html

Comment: I think that nations aspiring to have attractive business environments for foreign investment  must fight corruption in all its forms. Failure to fight corruption has disastrous and catastrophic socio-economic   and political negative consequences that will take long time to correct. 

Nations can no longer avoids fighting corruption. The 1980s and 1990s eras are by far different from our current era. 

Fraud in the private and nonprofit sector

Internal control, decision making, and effective management are at the core of fighting fraud in the private and nonprofit sector. It is unfortunate that management and those charged with governance do not give sufficient attention to the importance of the linkages between internal control and decision making.

Internal control is the foundation of the decision making and decision making processes. Effective decision maker should be able to consume effectively and efficiently reliable and proper information. Unless private and nonprofit management have effective decision makers, they will continue to suffer from all kinds of fraud that will cost their stakeholders too much money, pain, and most importantly trust in the justification of their existence.

I wrote this commentary based on the following article that appeared in "THE ATLANTA JOURNAL-CONSTITUTION"  

Fraud in the private and nonprofit sector, December 4, 2012