Executive Summary
- The Center for Audit Quality (CAQ) and Anti-Fraud Collaboration (AFC) convened a multi-stakeholder dialogue amongst members of the financial reporting ecosystem at a second Fraud Forum during the 2025 International Fraud Awareness Week. Participants explored the changes in a dynamic fraud risk landscape, considered existing roles and responsibilities from the perspective of their roles, and shared insights into key considerations for strengthening fraud deterrence and detection practices.
- A whistleblower’s firsthand experience highlights how systemic failures in governance and oversight can enable large-scale fraud. The pivotal role of whistleblowers underscores the need for organizations to foster strong ethical cultures, encourage skepticism, and implement robust whistleblower protections to prevent such frauds from occurring or detect similar frauds sooner.
- An area that is top of mind and likely the biggest risk for organizations is artificial intelligence (AI)due to its rapid advancement and widespread use. When evaluating emerging risk areas, companies should assess the likelihood and significance of the risks and tailor their fraud risk management programs accordingly.
- While advancements in technology introduce new risks, participants noted it also offers significant opportunities to strengthen fraud detection and deterrence. When implementing technology to deter and detect fraud, the goal is not perfection, but progress—leveraging tools effectively to improve existing processes while maintaining strong governance and culture.
- Organizational culture and professional skepticism go hand in hand and are foundational to fraud deterrence and detection. These elements should be embedded into an organization from top to bottom with employees of every level having a shared value and shared cultural fabric within an organization that can ultimately help organizations focus on promoting positive ethical behaviors.
- An interactive fraud case simulation highlighted the unique responsibilities of each stakeholder group and the importance of each stakeholder’s role working in concert when assessing and responding to fraud risks. Clear and consistent communication across the financial reporting ecosystem can promote an environment in which fraud risk management is understood and embedded throughout all levels within an organization.
- The environment in which fraud risks emerge is shaped by rapid technological advancements, shifting regulatory priorities, and the evolving tactics of bad actors. It is essential for organizations and key stakeholders to remain vigilant by continually monitoring internal and external developments, reassessing existing anti-fraud efforts, and adapting to new challenges as they arise.
- While the aspiration to eliminate fraud entirely is noble, the reality is that the goal is unrealistic and thus organizations should be focused on limiting the occurrences and impact of fraud. By fostering open communication, investing in upskilling and training, and leveraging human judgment and technology, organizations can strengthen their defenses against fraud and protect the integrity of financial reporting.
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