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NCJRS Abstract

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NCJ Number: 69027 Find in a Library
Title: MANAGEMENT FRAUD - PREVENTIVE ACTIONS FOR BUSINESS
Journal: COOPERS AND LYBRAND NEWSLETTER  Volume:19  Issue:4  Dated:(APRIL 1977)  Pages:COMPLETE ISSUE
Author(s): ANON
Corporate Author: Coopers and Lybrand
United States of America
Date Published: 1977
Page Count: 7
Sponsoring Agency: Coopers and Lybrand
New York, NY 10020
Format: Document
Language: English
Country: United States of America
Annotation: PUBLICLY HELD COMPANIES CAN CONDUCT THEIR OWN INVESTIGATIONS, ESTABLISH CONTROL SYSTEMS TO CURTAIL MANAGEMENT FRAUD, AND USE INTERNAL AUDITORS RATHER THAN WAIT FOR GOVERNMENT ENACTED RESTRICTIVE LAWS.
Abstract: IN ORDER TO COMBAT PROBLEMS OF FRAUD, PAYOFFS, AND BRIBES, THE ACCOUNTING PROFESSION, CORPORATIONS, AND THE FEDERAL GOVERNMENT (THROUGH CONGRESS, THE SECURITIES AND EXCHANGE COMMISSION (SEC), THE INTERNAL REVENUE SERVICE, AND THE COURTS) ARE TAKING CORRECTIVE ACTION. YET A PROGRAM OF DETECTION AND PREVENTION SHOULD INVOLVE THE HIGHEST LEVELS OF THE COMPANY. THE COMPANY SHOULD FORMULATE AND ISSUE A FORMAL STATEMENT OF POLICY, OPTING FOR HIGH ETHICAL STANDARDS AND EMPLOYEE RECOGNITION OF SUCH STANDARDS. MANAGEMENT PERSONNEL AT ALL LEVELS SHOULD BE AWARE OF THE POTENTIAL FOR FRAUD AND HAVE AT THEIR DISPOSAL A SYSTEM OF CHECKS AND BALANCES, POLICIES, AND MONITORING INSTRUMENTS FOR DISCOVERING AND DEALING WITH EMPLOYEE FRAUD. INTERNAL CONTROLS SHOULD ENSURE THAT ALL EMPLOYEES FEEL FREE TO REPORT DELIBERATE ERRORS OR FALSIFICATIONS. AN EFFECTIVE INTERNAL AUDIT DEPARTMENT CAN OBTAIN AND REVIEW COMPANY POLICY, REVIEW THE AUTHENTICITY OF DOCUMENTATION OF ANY LARGE OR ABNORMAL EXPENDITURES, AND EXAMINE INDIVIDUAL'S EXPENSE REPORTS AND ENTERTAINMENT VOUCHERS. AN INDEPENDENT AUDITOR CAN EVALUATE ACCOUNTING CONTROLS WITHIN THE COMPANY. AUDITOR'S INVESTIGATIONS SHOULD ALSO COVER FOREIGN PAYMENTS. A CHECKLIST OF DANGER SIGNALS FOR EXECUTIVES AND DIRECTORS IS PROVIDED.
Index Term(s): Accounting methods; Auditing standards; Audits; Financial management; Fraud; Investigative auditing procedures
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=69027

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