Corporate Fraud
Corporate Fraud
I. Introductions
a. Fraud in the accounting environment is on the increase.
b. Fraud takes place in different forms in the accounting environment.
II. The growing risk of fraud and corruption
a. Local problems, global pain
b. Awareness is crucial
c. Tailoring efforts to avert damage
III. Preventing Fraud
a. Background checks and enhanced due diligence
b. Monitoring and evaluating preventive controls
c. Continuous controls monitoring
IV. Can we eliminate fraud and corruption
a. Focusing on the larger picture
b. Potential for catastrophe
V. Eliminating Corporate Fraud
a. The problem
b. Auditing, Internal Controls and Fraud
c. Legislation and Fraud
VI. Conclusion
Corporate Fraud
Corporate fraud is on the rise in today’s economy. We are seeing it more with embezzlement with CEO’s like with Enron and WorldCom. There is not enough awareness on the ways to prevent fraud. Employees don’t know how to blow the whistle on the fraud when they see it happening. We all need to do our part to help prevent this from happening. Every corporation has potential for fraud and corruption whether it is from a lower level employee or the CEO.
There needs to be stricter enforcement of anti-fraud and anti-corruption laws around the globe. Because investigations are increasing, prosecutors are getting tougher, fines are becoming heavier and settlements are more expensive, the frequency of violators going to jail is far greater now than in the past. More countries acknowledge the large downside risks of corruption and fraud so the tolerance of bribery is diminishing. A corporation can have a whistle-blower hotline which the employees can call when they feel there may be fraud happening. The line would need to be a hotline that works outside of business hours and can accommodate several languages so the employees can feel comfortable calling. The awareness is crucial and will take a business approach and focus on performance and
I. Introductions
a. Fraud in the accounting environment is on the increase.
b. Fraud takes place in different forms in the accounting environment.
II. The growing risk of fraud and corruption
a. Local problems, global pain
b. Awareness is crucial
c. Tailoring efforts to avert damage
III. Preventing Fraud
a. Background checks and enhanced due diligence
b. Monitoring and evaluating preventive controls
c. Continuous controls monitoring
IV. Can we eliminate fraud and corruption
a. Focusing on the larger picture
b. Potential for catastrophe
V. Eliminating Corporate Fraud
a. The problem
b. Auditing, Internal Controls and Fraud
c. Legislation and Fraud
VI. Conclusion
Corporate Fraud
Corporate fraud is on the rise in today’s economy. We are seeing it more with embezzlement with CEO’s like with Enron and WorldCom. There is not enough awareness on the ways to prevent fraud. Employees don’t know how to blow the whistle on the fraud when they see it happening. We all need to do our part to help prevent this from happening. Every corporation has potential for fraud and corruption whether it is from a lower level employee or the CEO.
There needs to be stricter enforcement of anti-fraud and anti-corruption laws around the globe. Because investigations are increasing, prosecutors are getting tougher, fines are becoming heavier and settlements are more expensive, the frequency of violators going to jail is far greater now than in the past. More countries acknowledge the large downside risks of corruption and fraud so the tolerance of bribery is diminishing. A corporation can have a whistle-blower hotline which the employees can call when they feel there may be fraud happening. The line would need to be a hotline that works outside of business hours and can accommodate several languages so the employees can feel comfortable calling. The awareness is crucial and will take a business approach and focus on performance and
References: Alleyne, Beverley, Belmont University. “The Effectiveness of Corporate Culture, Auditor Education, and Legislation in Identifying, Preventing, and Eliminating Corporate Fraud.” Journal of Business, Accounting, and Finance, Volume 7, Number 1, Spring 2013. Bishop, Toby J.F. and Hydoski, Frank E. “Corporate Resiliency.” Published by John Wiley and Sons, Inc, 2009. Kroll, Karen. “Keeping the Company Safe: Preventing and Detecting Fraud.” Financial Executive. www.financialexecutives.org, Spring 2012