Each day we read or hear in the news of another case of fraud in non-profits and businesses. The risk of fraud is a serious
concern for all types of organizations, for which a damaged reputation can have devastating consequences.
It is important to appreciate the gift of trust and to also have strategies in place that provide strong internal controls.
As with all risk issues, the ultimate responsibility for identifying gaps and developing fraud controls rests with management. To meet this responsibility, management should not assume that if fraud occurs “the auditors will catch it.” Although having an annual audit is a good anti-fraud control, by the time an audit uncovers a fraud scheme, it is usually too late to prevent the financial and reputational damage that will
Most board members and executives do not think as fraudsters do, which is a good thing. Unfortunately, this can make it difficult for them to develop controls that help reduce their
organizations’ exposure to fraud risk. A critical step in the process of developing an effective fraud risk management program is assessing management and the board’s own skills and capabilities. The board is ultimately responsible for oversight of the organization’s risk management efforts, which senior management is then charged with carrying out.
Looking for practical suggestions to protect you from consumer fraud? Engage in our newly redesigned course – Frauds, Scams and Cons!
Please also check out our website News section as it examines additional effective anti-fraud principles for organizations and shows what CFTEA does to mitigate fraud.