Defining roles in prevention of financial reporting fraud
There is no way to guarantee that an organization will not experience financial reporting fraud.
But research shows that fraud-resistant organizations share three traits:
- A tone at the top that encourages an ethical culture.
- The presence of skepticism.
- Engagement of all participants in the financial reporting supply chain.
That’s according to The Fraud-Resistant Organization, a report released Monday by the Anti-Fraud Collaboration, whose members include the Center for Audit Quality (CAQ), Financial Executives International, The Institute of Internal Auditors, and the National Association of Corporate Directors. Read more on the Journal of Accountancy.