Fraud and Internal Control
Internal control plays an important role in the prevention and detection of fraud. Under the Sarbanes-Oxley Act, companies are required to perform a fraud risk assessment and assess related controls. This typically involves identifying scenarios in which theft or loss could occur and determining if existing control procedures effectively manage the risk to an acceptable level. The risk that senior management might override important financial controls to manipulate financial reporting is also a key area of focus in fraud risk assessment.
The AICPA, IIA, and ACFE also sponsored a guide published during 2008 that includes a framework for helping organizations manage their fraud risk.
Read more about this topic: Internal Control
Famous quotes containing the words fraud, internal and/or control:
“The disfranchisement of a single legal elector by fraud or intimidation is a crime too grave to be regarded lightly.”
—Benjamin Harrison (1833–1901)
“Personal change, growth, development, identity formation—these tasks that once were thought to belong to childhood and adolescence alone now are recognized as part of adult life as well. Gone is the belief that adulthood is, or ought to be, a time of internal peace and comfort, that growing pains belong only to the young; gone the belief that these are marker events—a job, a mate, a child—through which we will pass into a life of relative ease.”
—Lillian Breslow Rubin (20th century)
“Being a parent is such serious business that we dare not take it too seriously. Children are inherently funny. So are parents. We all are at our funniest when we are desperately struggling to appear to be in control of a new situation.”
—Lawrence Kutner (20th century)