Risk

There is rarely a single root cause of fraud, but being aware of some of the common fraud schemes, like improper revenue recognition, reserves manipulation, inventory misstatement, and loan impairment deferral, can help organizations deter and detect fraud more readily.

Fraud prevention should not be an afterthought in crisis planning and response; it should be the starting point.

While company management is responsible for assessing fraud risk and establishing controls, other members of the supply chain, like internal auditors, can play an important role in evaluating management’s measures to reduce the risk of fraud, too.

It is also essential to look beyond traditional approaches; for example, what are the potential implications for fraud risk when it comes to the use of non-GAAP measures? How can data analytics and technology support our efforts to combat risk?

The Anti-Fraud Collaboration examines higher-risk areas that are susceptible to fraud and shares insights into what financial reporting supply chain stakeholders can do to identify and mitigate these types of fraud risks more effectively.

The resources below explore multiple angles of fraud risk.

LDC Cloud Systems Case Study

LDC Cloud Systems Case Study

The LDC Cloud Systems Case Study is another installment in the Anti-Fraud Collaboration’s successful series of case studies. Participants in case study teachings start with a hypothetical scenario about a fictional company dealing with a fraud. Guided by an...

LDC Cloud Systems Case Study Video Vignettes

LDC Cloud Systems Case Study Video Vignettes

The Anti-Fraud Collaboration has developed six short video vignettes for use with the LDC Cloud Systems Case Study. In each vignette, actors reenact several interactions selected from the case study. The videos, which can also be found on YouTube, do not provide...

Fraud Investigations and the SEC: What to Do, What to Know

Fraud Investigations and the SEC: What to Do, What to Know

Thanks in part to proactive efforts like the Anti-Fraud Collaboration, awareness and activity in the fight against financial reporting fraud are as strong as ever. Unfortunately, however, fraud still happens, and always will. So what steps should management and a...

Nonplussed by Non-GAAP

Nonplussed by Non-GAAP

The common, and at times creative, use of “non-GAAP” financial reporting has come under scrutiny before by some, including the U.S. Securities and Exchange Commission (SEC). While not technically prohibited by SEC rules, the SEC’s attention to non-GAAP measures is...

Carolina Wildnerness Case Study

Carolina Wildnerness Case Study

The Carolina Wilderness Outfitters Case Study explores potential material fraud at a fictitious public company. The case can be used to facilitate a discussion about what steps to take when fraud is suspected in an organization. The case study also aims to raises...