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.)
“When a person doesn’t understand something, he feels internal discord: however he doesn’t search for that discord in himself, as he should, but searches outside of himself. Thence a war develops with that which he doesn’t understand.”
—Anton Pavlovich Chekhov (1860–1904)
“Surrealism, n. Pure psychic automatism, by which it is intended to express, whether verbally or in writing, or in any other way, the real process of thought. Thought’s dictation, free from any control by the reason, independent of any aesthetic or moral preoccupation.”
—André Breton (1896–1966)