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Fraud, IT's Better To Be Article Review

The other two cases looked at errors that were made deliberately by subsidiary management and, in both cases, were both quantitatively and qualitatively material. Due to the fact that most fraud starts at the bottom, is it very important for executives to always be looking for things that do not appear to be right. Fiscal honesty is crucial in financial markets. It is essential that management quickly resolve any monetary issues that come up. Delay only compounds accounting indiscretions. The consequences to all concerned, the business, its investors and creditors, and administration, are that if things are left unattended they will only get worse.

There is no alternative to good systems of recordkeeping, controls, and oversight. Management cannot be distant and disinterested. Financial reports must be looked at and examined, not just amassed. Discrepancies must be rapidly resolved....

Communication of accounting rules and measures must be apparent and timely. Doubts also need to be taken care of in a timely manner and cannot be permitted to continue to be unclear. Once exposed, a problem with financial records must be communicated to the audit committee and the auditors. Not only does management have an accountability to do so, but the audit committee and auditors can be a significant resource to help management fix the problem.
Fraud has been a problem that has been around for a long time and it appears to be an every growing problem as well. Because of this there is a growing need to have fraud investigators in order to eradicate this issue for the good of all businesses and those who have vested interests in them.

References

Weinstein, Edward a. (2010). When it Comes to Fraud, it's Better to Be Safe than Sorry. The CPA Journal, p.6-9.

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References

Weinstein, Edward a. (2010). When it Comes to Fraud, it's Better to Be Safe than Sorry. The CPA Journal, p.6-9.
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