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 and, fraud, internal and/or control:
“There exists in a great part of the Northern people a gloomy diffidence in the moral character of the government. On the broaching of this question, as general expression of despondency, of disbelief that any good will accrue from a remonstrance on an act of fraud and robbery, appeared in those men to whom we naturally turn for aid and counsel. Will the American government steal? Will it lie? Will it kill?—We ask triumphantly.”
—Ralph Waldo Emerson (1803–1882)
“Things gained through unjust fraud are never secure.”
—Sophocles (497–406/5 B.C.)
“I maintain that I have been a Negro three times—a Negro baby, a Negro girl and a Negro woman. Still, if you have received no clear cut impression of what the Negro in America is like, then you are in the same place with me. There is no The Negro here. Our lives are so diversified, internal attitudes so varied, appearances and capabilities so different, that there is no possible classification so catholic that it will cover us all, except My people! My people!”
—Zora Neale Hurston (1891–1960)
“The awareness that health is dependent upon habits that we control makes us the first generation in history that to a large extent determines its own destiny.”
—Jimmy Carter (James Earl Carter, Jr.)