While the dog days of summer have typically been a fairly quiet time for internal audit news, there is one place where internal audit is creating some heat these months—on university campuses. There have been a string of university officials and professors who have been implicated of wrongdoing after an Read More
The final version of the fiscal 2019 Massachusetts state budget, released this week, will include reforms to the state police that were proposed by the Massachusetts House. The final bill includes a new state police internal audit unit and the creation of a new commission to review state police hiring Read More
A federal judge on Monday said PricewaterhouseCoopers LLP must pay $625.3 million in damages to the Federal Deposit Insurance Corp for failing to uncover fraud that led to one of the largest bank failures of the global financial crisis. U.S. District Judge Barbara Rothstein found it more likely than not Read More
“Where there’s money, there’s money to steal,” writes Tiffany Couch in a recent article in Accounting Today. The CEO of forensic accounting firm Acuity Forensics says that even after 15 years as a forensic accountant, it never ceases to amaze her that fraudsters think they can get away with their Read More
An angry Tesla employee tried to damage the company by inserting bad code into the electric car company’s manufacturing system and illegally exporting data to third parties. The case serves as a reminder to the damage that rogue employees can do and the need for internal controls to prevent such Read More
The additional professional judgment required by the new revenue recognition standard could expose companies to an increased level of fraud, given the inherent opportunity for bias created by a principles-based framework. The new standard moves companies away from a rules-based framework to a more principles-based approach as it relates to Read More
An internal audit has found some major accounting woes in the City of Brotherly Love. An audit report, released Tuesday by City Controller Rebecca Rhynhart, cites $924 million in accounting errors last year alone. The city is also missing $33 million from its main bank account, a discrepancy that came Read More
You might think that company managers behave more honestly when they know they’re being watched. More analysts, more institutional investors, more nosy reporters equals reliable financial reporting, right? Not so fast, say three finance researchers at the Massachusetts Institute of Technology and the University of Pennsylvania. Convention has it that Read More
Money laundering is an expanding and increasingly international phenomenon, according to a new report by Moneyval, Europe’s money-laundering watchdog. Current estimates of the amount of money laundered world-wide range from $500 billion to a staggering $1 trillion, with disastrous effects on the global economy, especially on vulnerable, developing economies. The Read More
Every company must have a deliberate plan to prevent and detect fraud and should never underestimate the potential of an attack from within. According to a recent report to the Nations on Occupational Fraud & Abuse, the typical organization loses 5 percent of revenues each year to fraud. To learn Read More
