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:
“Things gained through unjust fraud are never secure.”
—Sophocles (497–406/5 B.C.)
“You will see Coleridge—he who sits obscure
In the exceeding lustre and the pure
Intense irradiation of a mind,
Which, with its own internal lightning blind,
Flags wearily through darkness and despair—
A cloud-encircled meteor of the air,
A hooded eagle among blinking owls.”
—Percy Bysshe Shelley (1792–1822)
“Just as men must give up economic control when their wives share the responsibility for the family’s financial well-being, women must give up exclusive parental control when their husbands assume more responsibility for child care.”
—Augustus Y. Napier (20th century)