“Skepticism in Practice,” a new report by the Anti-Fraud Collaboration, a cooperative dedicated to advancing the discussion of critical anti-fraud efforts and integrity in financial reporting, explores the importance of more critically assessing the potential for fraud and examining some of the biases that can leave organizations blind to deceptive activities. A healthy dose of skepticism is key.

In Assessing Corporate Culture: A Proactive Approach to Deter Misconduct, the Anti-Fraud Collaboration shares insights into the importance of assessing culture as well as considerations around culture-assessment process ownership. The paper also details resources specifically targeted to the unique role auditors and other stakeholders in the financial reporting process.

Organizations can take substantive actions to address the reporting of suspected financial fraud, according to Encouraging the Reporting of Misconduct, a report from the Anti-Fraud Collaboration. The report presents key recommendations from key players in the financial reporting supply chain, including corporate directors, financial executives, and internal and external auditors. The Collaboration compiled best practices from roundtable discussions focused on suspected financial reporting fraud and the negative impact that fear of retaliation has on the timely detection of such fraud. By understanding the factors that discourage reporting, the Collaboration offers ways to counter such obstacles and makes recommendations for creating and maintaining a retaliation-free environment.

Addressing Challenges for Highly Subjective and Complex Accounting Areas compiles leading-practice recommendations from dozens of company executives, corporate directors, and auditors who attended two 2016 Anti-Fraud Collaboration workshops to discuss ways to help deter fraud and enhance financial reporting. Taken together, these insights illuminate and underscore how improved accounting policies and internal controls related to highly subjective and complex accounting areas are key for stemming financial reporting fraud and reducing the number of restatements.