Addressing Major Fraud Risks: Developing Effective Countermeasures and Controls
The CFO's Anti-Fraud Roadmap 4/6
Welcome to fraud enquirer, a newsletter about corporate governance, risk management, and internal control. This is written by Terry Tamai, who was in the audit practice at a Big 4 accounting firm for 30+ years including 17 years as a partner.
As a CFO, once you have familiarized yourself with the fraud risks facing your organization, the next crucial step is to develop appropriate countermeasures to prevent and detect fraud. In this post, we will explore the process of designing, implementing, and monitoring effective controls and procedures to address each major fraud risk identified.
Developing Effective Countermeasures and Controls
Design controls and procedures to effectively address fraud risks: When developing countermeasures, it is vital to ensure that they directly address the identified fraud risks. Work closely with the risk management team to design controls and procedures that are tailored to your organization's unique risk profile.
Assign appropriate control owners: For each control or procedure, assign a responsible individual or team with the necessary knowledge, experience, and authority to effectively perform the control. This ensures that controls are executed by competent individuals who understand the significance of their role in fraud prevention and detection.
Ensure timely and accurate execution of controls and procedures: Controls and procedures should be performed in a timely manner, using complete and accurate information. Establish a regular schedule for executing and reviewing controls, and monitor compliance to ensure that control activities are carried out as planned.
Developing effective countermeasures and controls to address major fraud risks is a critical responsibility for every CFO. By designing tailored controls, assigning appropriate control owners, and ensuring timely and accurate execution of control activities, you can significantly reduce your organization's exposure to fraud. Stay vigilant and continuously work to strengthen your company's defenses against fraud by focusing on the design, implementation, and monitoring of your anti-fraud program's controls and procedures.
Thank you for reading fraud enquirer!
If you enjoyed it, subscribe for free not to miss the update. You can unsubscribe at any time.
Let us hear from you!
Your feedback is important. Please help us make this publication more valuable and enjoyable to you and other readers.