Tag: Risk

Risk management, controls

Fraud: Department of Justice (DOJ) Announces Procurement Collusion Strike Force

On November 5th, the Department of Justice announced the formation of the new Procurement Collusion Strike Force (PCSF) “focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding”.

The Strike Force is an inter-agency partnership comprised of prosecutors from the Antitrust Division, and prosecutors from thirteen (13) U.S. Attorneys’ Offices.  Aiding in the prosecutors’ efforts are investigation partners such as the Offices of Inspector Generals from the Department of Justice, Department of Defense, U.S. Postal Service, and General Services Administration Office. The Department of Justice’s announcement proclaimed that investigating and prosecuting those who “cheat, collude and seek to undermine the integrity of government procurement” will have more to concern themselves with when executing their crimes. Prosecutors and investigators alike expressed enthusiasm to be working as a part of this new team.

» Read More

Compliance Thought Leaders You Should Be Following by Matt Kelly

Compiling a list of thought leaders in ethics and compliance is fun, but so challenging. There are simply too many thoughtful people in this field — which is itself enormous and wide-ranging — to call out everyone worth following. So below is a small slice of the thinkers in corporate ethics and compliance that I try to follow.
How should we define a thought leader, exactly? I define it literally. First, someone who thinks about corporate compliance issues, and puts those thoughts into words. Some bloggers and tweeters, for example, do a superb job passing along what happened, but not why or how it happened. 

Second, thought leaders lead. They raise questions about what should or could happen in ethics and compliance, even if practical obstacles today make achieving those goals difficult right now. Thought leaders provide context around the events of today to suggest what might be possible tomorrow.

» Read More

Skepticism – A Key Tool in the Fight Against Fraud

“Trust but verify” could be a downright dangerous approach when applied to audit procedures in particular. A much better slogan for fraud deterrence would be, “Trust is a professional hazard.”

The implication is that because financial management plays a leading role in detecting financial fraud, it is incumbent on executives – not just auditors – to exercise appropriate levels of professional skepticism. Board members and particularly audit committee members also must take care to exercise a skeptical approach to financial reports and supporting information.

» Read More

Theranos: Too Good to Be True!

Overview – Fraud vs. Groundbreaking Science

Elizabeth Holmes (“Holmes”) founded Theranos in 2003 at 19 years old and dropped out of Stanford University to run the company. She marketed a

Tone From the Top, the Next Level

As a result of COVID-19, the Board of Directors and Senior Management are challenged to monitor the cultural shifts of their organization and adjust their sensitivity and the frequency of communications as appropriate.

Leaders should always try to find ways to talk and engage with their people to motivate them, especially during these uncertain and trying times. If done correctly, talking can be incredibly powerful. It can help relieve anxiety (defined as “a feeling of worry, nervousness or unease, typically about an imminent event or something with an uncertain outcome”) and help people find the strength they didn’t know was in them. Studies have shown that talking shuts down the brain’s fear center.

» Read More

Baker Tilly’s 2019 Effective Governance and Compliance Roundtable Series – May 1, 2019 – CPE Event in Philadelphia -Using Continuous Auditing and Monitoring in the Fight Against Fraud

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

Combating Fraud Through Effective Internal Controls

“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.

» Read More

Avoiding the Black Swan: Barriers to Improving Risk Management

Almost daily, U.S. business journals have chronicled the failure of major corporations to discover, evaluate, and mitigate the serious risks that have crippled the companies and financial markets. The disastrous results felt throughout the economy have given new and sharp meaning to the dire  need for more muscular, comprehensive enterprise risk management (ERM) in corporate America.

This survey, in collaboration with CFO Research Services, is particularly timely for corporate executives at every level.

» Read More
Author: Jonathan T. Marks, CPA, CFF, CFE


Partner, Firm Practice Leader - Global Fraud & Forensic Investigations, Compliance, & Integrity Services

Communication and work product may be privileged and confidential.

Attribution

The Author gives his permission to link, post, distribute, or reference this article for any lawful purpose, provided attribution is made to the author. The author can be reached at jtmarkscpa@gmail.com

Jonathan T. Marks, his firm, their affiliates, and all related entities shall not be responsible for any loss sustained by any person or entity that relies on this publication.

Archives
Categories
©2021 All rights reserved.
Skip to toolbar