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:
“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)
“The real essence, the internal qualities, and constitution of even the meanest object, is hid from our view; something there is in every drop of water, every grain of sand, which it is beyond the power of human understanding to fathom or comprehend. But it is evident ... that we are influenced by false principles to that degree as to mistrust our senses, and think we know nothing of those things which we perfectly comprehend.”
—George Berkeley (1685–1753)
“When a book, any sort of book, reaches a certain intensity of artistic performance it becomes literature. That intensity may be a matter of style, situation, character, emotional tone, or idea, or half a dozen other things. It may also be a perfection of control over the movement of a story similar to the control a great pitcher has over the ball.”
—Raymond Chandler (1888–1959)