DOJ Evaluation of Corporate Compliance Programs» Read More
Organizations are under increasing scrutiny regarding ethical lapses and allegations of fraud. Fiscal year 2018 was a record-breaking year for the U.S. Securities and Exchange Commission’s whistleblower program, as more and more individuals have been coming forward with allegations of impropriety. Come learn how to use continuous auditing and monitoring in the fight against fraud – or help improve your compliance program!» Read More
Jonathan T. Marks will lead today’s discussion that will focus on the key components of a fraud risk management program and discuss what the board and senior management expect today
NOW is the best time to prepare for international data #privacy legislation, making this a top strategic risk for boards to consider in NACD (National Association of Corporate Directors)’s 2019 Governance Outlook #NACDOutlook2019» Read More
“Fraud is not an accounting problem; it is a social phenomenon.” Joe Wells
Most companies will not readily admit that their organizations may be vulnerable to fraud.
According to the 2020 Report to the Nations published by the Association of Certified Fraud Examiners (“ACFE”), which contains an analysis of approximately 2,500 cases of occupational fraud that were investigated between January 2018 and September 2019, organizations lose 5% of their annual revenues to fraud. While this number is only a general estimate based on the opinion, it represents the collective observations of anti-fraud experts who together have investigated hundreds of thousands of fraud cases. Based on the ACFE’s study, the median loss caused by frauds was $125,000, with 21.0% of the cases resulting in losses of at least $1 million.
If you think Good Tone or Conduct from the Top means you have an ethical environment, guess again!
Some of your people are up to no good.
Corruption can take many forms, but its root cause could and often does include a conflict of interest of some sort and possibly collusion.
OECD states, Conflict of interest
Edgar Schein presents culture as a series of assumptions a person makes about the group in which they participate. Below are some “red flags” that may indicate there is a problem with the culture of the organization.» Read More
I’m often am asked what can be done to make a fraud risk management program better, assuming one exists. To make something better, one must recognize and come to terms
Related party transactions could be a “red flag“, and must be evaluated with the proper skepticism! Perceived opportunities to commit management fraud include the ability of the fraudster to
As the organization’s ultimate decision-making body, the board of directors plays two critical roles: overseeing management on behalf of shareholders and other constituencies; and advising management, albeit with limited involvement in everyday company operations – nose in, hands off! The board should not attempt to run the operations of the organization; it should oversee how management runs the company.
I am amazed at how many members literally are not engaged, which reminded that one of the traits of an effective leader, or Pilot, is being a good team builder. But how can you build a good team if you don’t understand the players? I’m not speaking about understanding their skills, I am speaking about understanding their level of engagement. That amorphous concept most ignore.» Read More
Corporate governance is the collection of systems and processes that an organization has in place to prevent or dissuade potentially self-interested persons from engaging in activities detrimental to the welfare of shareholders and stakeholders and helps to promote better overall decision making.» Read More
It’s a mistake to ignore the human element when fighting fraud within a corporation. There are behavioral and
At a minimum, as part of (emphasis added) your overall fraud risk management program, the following key processes/functions should be analyzed along with the embedded (key) internal controls,
The Department of Justice (DOJ) said in a release, “Executives at the highest levels of Petrobras — including members of its executive board and board of directors — facilitated the
While we can’t get into the mind of the white collar criminal, we can take a closer look at high-profile individuals who have perpetrated massive fraud at corporations and instances of fraud identified in practice, as well as some research, to help is identify a pattern of similar behavioral elements common to white-collar crooks and cultural elements common to their environments.» Read More
Boards and Audit Committee members this is a public service announcement.
You should be really digging in and asking why an investigation was shut down.
That is all!
Lack of separation of the CHIEF COMPLIANCE OFFICER and the GENERAL COUNSEL has been cited as a cause of numerous corporate failures. In fact, separation is now the norm in Health Care organizations. In spite of numerous recommendations to separate the two functions, there is general agreement that the roles are closely related and frequent collaboration is required.
The issues relating to separation of the CHIEF COMPLIANCE OFFICER and the GENERAL COUNSEL are most often discussed in terms of the differences in their roles (below).» Read More
Knowing whether to deploy the chief executive as its public face during a crisis is a tricky question for a company to answer but two recent research