Briefing Research Paper Fraud And Risk
Briefing Research Paper
Scenario #5
Table of Contents
Executive Summary i
Introduction 1
Identified Fraud and Corruption Risks 1
Red Flags and Lessons Learned 1
Risk Analysis 1
Fraud Theories 1
Best Practices in Fraud Corruption Prevention 1
Action Plan 1
Conclusion 1
References 2
Executive Summary
Many experts believe that the majority of frauds within an organization involve employees and executives, with a desire from a combination of selfish greed, quests for power and disregard for the impact of their fraudulent decisions on shareholders and employees. An organization can work to prevent, deter and detect fraud by utilizing a fraud risk assessment and creating an anti-fraud program. Ethics and integrity of management and employees are the foundation of a control system, and major frauds occur due to managers that lack ethics and integrity. To manage the cost of fraud, a proper implementation of an effective and visible anti-fraud program that identifies the fraud risk and is balanced out with the internal controls to manage this cost. An effective organizational architecture seeks intended results in education, detection and deterrence, through interlaced corporate culture, organizational structure and compliance system. Organizational architecture should be tailored to fit an organization’s specific needs and circumstances, which improve firm performance. Corporate culture sets the moral tone for an organization and can be defined as the statements, visions, customs, values, and role models. The visions and commitments from leadership can play a significant role in reducing corruption. A control framework, such as COSO, should then be implemented that includes policies and procedures, which provide the definition of the scope and activities of organizational functions, and include the communication and relationships internally and externally throughout the organization.
Introduction
The first section of this briefing report highlights
Scenario #5
Table of Contents
Executive Summary i
Introduction 1
Identified Fraud and Corruption Risks 1
Red Flags and Lessons Learned 1
Risk Analysis 1
Fraud Theories 1
Best Practices in Fraud Corruption Prevention 1
Action Plan 1
Conclusion 1
References 2
Executive Summary
Many experts believe that the majority of frauds within an organization involve employees and executives, with a desire from a combination of selfish greed, quests for power and disregard for the impact of their fraudulent decisions on shareholders and employees. An organization can work to prevent, deter and detect fraud by utilizing a fraud risk assessment and creating an anti-fraud program. Ethics and integrity of management and employees are the foundation of a control system, and major frauds occur due to managers that lack ethics and integrity. To manage the cost of fraud, a proper implementation of an effective and visible anti-fraud program that identifies the fraud risk and is balanced out with the internal controls to manage this cost. An effective organizational architecture seeks intended results in education, detection and deterrence, through interlaced corporate culture, organizational structure and compliance system. Organizational architecture should be tailored to fit an organization’s specific needs and circumstances, which improve firm performance. Corporate culture sets the moral tone for an organization and can be defined as the statements, visions, customs, values, and role models. The visions and commitments from leadership can play a significant role in reducing corruption. A control framework, such as COSO, should then be implemented that includes policies and procedures, which provide the definition of the scope and activities of organizational functions, and include the communication and relationships internally and externally throughout the organization.
Introduction
The first section of this briefing report highlights
References: Biegelman, M.T., & Bartow, J.T. (2012). Executive Roadmap to Fraud Prevention and Internal Control: Creating a Culture of Compliance Cascarino, R.E. (2012). Wiley Corporate F and A: Corporate Fraud and Internal Control + Software Demo: A Framework for Prevention Cullen, F.T., & Wilcox, F. (2010). Encyclopedia of Criminology Theory. Available from: http://web.b.ebscohost.com.ezproxy.viu.ca/ehost/ebookviewer/ebook/bmxlYmtfXzQ3NDMyN19fQU41?sid=25d18623-2247-4ec0-a663-85e13a60d852@sessionmgr110 Goldmann, P.D., Kaufman, H. (2009). Anti-Fraud Risk and Control. Available from: http://site.ebrary.com/lib/viu/reader.action?docID=10315679 Kovacich, G.L. (2007). Fighting Fraud: How to Establish and Manage an Anti-Fraud Program. Available from: http://site.ebrary.com/lib/viu/reader.action?docID=10190213 Luo, Y. (2004). An Organizational Perspective of Corruption. Management and Organization Review Raferty, H., & Holder, F.L (2014). Business Fraud: Culture is the Culprit. Retrieved from: http://ftijournal.com/article/business-fraud-culture-is-the-culprit Rezaee, Z. (2005). Causes, consequences, and detrence of financial statement fraud. Critical Perspectives on Accounting, 16(3), 277-298 Sandberg, J., Solomon, D., & Blumenstein, R. (2002). Accounting Spot-Check Unearthed A Scandal in WorldCom 's Books Zhou, W., & Kapoor, G. (2010). Detecting evolutionary financial statement fraud. Decision Support Systems