Anti-Fraud Collaboration
The Financial Executive Magazine conducted an interview in Spring 2014 with the members of Anti- Fraud Collaboration (AFC) about fraud and complacency. The members who participated in the interview were; Cindy Fornelli, executive director of the Center for Audit Quality; Ken Daly, president and CEO of the National Association of Corporate Directors; Marie Hollein, president and CEO of Financial Executives International; Richard Chambers, president and CEO of The Institute of Internal Auditors; and Hal Garyn, vice president of professional practices at the IIA. To combat the threat of fraud and promote the detection and deterrence of financial fraud, Center for Audit Quality (CAQ), Financial Executives International (FEI), The Institute of Internal
Auditors (The IIA) and the National Association of Corporate Directors (NACD) jointly formed The Anti-Fraud Collaboration (AFC) in October 2010 (Finacial Executive Magazine, 2014). The members believe that the rising awareness and fraud education has significantly changed the financial reporting fraud environment. The organization’s key priorities of being a part of the community to address the financial fraud risk and assisting internal auditors to be a resource of fighting financial reporting fraud are the focus on financial reporting fraud education. One of the highlights of this interview is the discussion about Tone at the Top. When setting the tone at the top the CEO and senior man agent should consider that” it’s not about what you say, it’s about what you do” (Financial Executive Magazine, 2014). The management need to understand the importance of the role of technology not only as a safeguard but also as an enabler for financial statement fraud, and maximize their potential to use the technology as an inhibitor. Essentially, technology cannot replace the need of a competent and professionally trained internal auditors. One of the biggest concern with fraud is complacency, which implies to be satisfied with the compliance programs and the code of ethics in place to deter and detect fraud (Financial Executive Magazine, 2014).The companies need to be vigilant and skeptical about the fraud risk and never become complacent.
Auditors (The IIA) and the National Association of Corporate Directors (NACD) jointly formed The Anti-Fraud Collaboration (AFC) in October 2010 (Finacial Executive Magazine, 2014). The members believe that the rising awareness and fraud education has significantly changed the financial reporting fraud environment. The organization’s key priorities of being a part of the community to address the financial fraud risk and assisting internal auditors to be a resource of fighting financial reporting fraud are the focus on financial reporting fraud education. One of the highlights of this interview is the discussion about Tone at the Top. When setting the tone at the top the CEO and senior man agent should consider that” it’s not about what you say, it’s about what you do” (Financial Executive Magazine, 2014). The management need to understand the importance of the role of technology not only as a safeguard but also as an enabler for financial statement fraud, and maximize their potential to use the technology as an inhibitor. Essentially, technology cannot replace the need of a competent and professionally trained internal auditors. One of the biggest concern with fraud is complacency, which implies to be satisfied with the compliance programs and the code of ethics in place to deter and detect fraud (Financial Executive Magazine, 2014).The companies need to be vigilant and skeptical about the fraud risk and never become complacent.