How can internal auditors look for fraud and assess fraud risks while remaining trusted advisors to their audit clients and management? The question is gaining renewed attention, in part because both the new Global Internal Audit Standards from the Institute of Internal Auditors (IIA) and the proposed standards from the […]
Investigators and internal auditors are using a somewhat simple mathematical principle to catch fraudsters. Known as “Benford’s law,” it is the idea that the distribution of digits in multi-digit natural numbers is not random, nor is it equally distributed; instead, it follows a predictable pattern. In the realm of data […]
Audit firm watchdog, the Public Company Accounting Oversight Board (PCAOB), is seeking public comment on a proposal aimed at increasing auditor vigilance against fraud and other forms of noncompliance with laws and regulations. If adopted, the proposal would strengthen auditor requirements to identify, evaluate, and communicate possible or actual wrongdoing and […]
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the Association of Certified Fraud Examiners (ACFE) jointly announced the release of the Fraud Risk Management Guide: Second Edition, a new publication that offers a blueprint for helping organizations establish an overall Fraud Risk Management Program. The Guide updates […]
Reports of mismanagement and voucher fraud at the D.C. Housing Authority (DCHA) continue to pile up, At-large Councilmember Robert White insisted at a press conference on March 30. White, who has chaired the council’s Housing Committee since January, highlighted four instances of alleged wrongdoing within DCHA — three of which […]
A new study finds that organizations are reporting increases in cyber fraud and phishing scams due to rapidly changing work practices as a result of the pandemic. It also found that companies are improving internal controls and providing new resources to internal audit to fight such fraud and they are […]
The Ohio Auditor’s office uncovered enough fraud in the state’s unemployment system to prompt a separate audit while simultaneously investigating the state agency that oversees unemployment assistance payments. To date, a total of $2 billion in fraudulent payments have been identified. A full audit report will be released in September. […]
As the world economy begins to awaken from an eighteen-month hibernation due to the pandemic, organizations are assessing how to adapt post-pandemic realities. New business operations, changing customer habits, and supply disruptions are three remnants of COVID-19 that can’t be helped by a vaccine. According to a new study, they […]
As the third line within the “Three Lines of Defense” governance model, internal audit must provide assurance over the effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations. Yet internal audit’s obligations don’t end there. The third-line responsibility also includes the mission to […]
Guest Blog With most office workers still toiling from the confines of their home offices and kitchen tables, and some unhappy with their current circumstances, many organizations are concerned about the potential for a rapid rise in fraud. The global economic contraction has hurt employee morale and has heightened vulnerability […]
