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)
“No real “vital” character in fiction is altogether a conscious construction of the author. On the contrary, it may be a sort of parasitic growth upon the author’s personality, developing by internal necessity as much as by external addition.”
—T.S. (Thomas Stearns)
“Men who have been raised violently have every reason to believe it is appropriate for them to control others through violence; they feel no compunction over being violent to women, children, and one another.”
—Frank Pittman (20th century)