Responsibility for Mitigating Fraud
3. External Auditor: Evaluate management programs and controls to deter and detect fraud for identified risks
1. Management: CFO/Controller: controls to deter and detect fraud
General Counsel/
Reasonable assurance that
Compliance: monitoring
Compliance with fraud standard (SAS 99) financial statements are free of material misstatement due to fraudulent financial reporting or misappropriation of assets
Financial Misconduct by Sr. Management Member(s) of the Board
Fraudulent Financial Reporting
2. Governance: Evaluate management identification of fraud risk and mitigation Evaluate implementation of fraud controls Reinforce “tone at the top” Conduct special investigations
Conversations with finance and operations personnel Disaggregated analytics Surprise audit procedures Journal entry testing
Costs & Expenses Avoided by Fraud
Misappropriation of Assets
Expenditures & Liabilities for an Improper Purpose
Revenue & Assets Obtained by Fraud
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