Practices for Fighting FraudBy
On March 16, 2017, the Anti-Fraud Collaboration released Addressing Challenges for Highly Subjective and Complex Accounting Areas, a compilation of leading-practice recommendations from company executives, corporate directors, auditors, and regulators who attended two 2016 workshops on fraud and financial reporting.
The report offers suggestions to help companies improve their accounting policies and systems of internal controls. For example, although accounting policies must adhere to technical accounting guidance, people who aren’t accountants must be able to understand them as well. The report also states that tone at the top is essential for effective internal control over financial reporting.
“Companies are sharing leading practices and voluntarily working with regulators to help deter and detect financial reporting fraud,” explained Cindy Fornelli, executive director of the Center for Audit Quality, on behalf of the Anti-Fraud Collaboration. “Investors, our capital markets, and public companies all win when we work together to combat fraud.”