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 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. The report is available at tinyurl.com/lybr29j.
“All players in the financial reporting supply chain must work together to deter and detect financial reporting fraud,” CAQ Executive Director Cindy Fornelli said in a news release. “The report highlights vital roles and responsibilities and provides each party with knowledge they can use to reduce the potential for fraud.”