Gilly Lord, Head of Audit Strategy & Transformation at PwC UK, shares key takeaways on the importance of corporate culture in combating fraud.
Sound corporate culture is a cornerstone of fraud deterrence and detection. This December 2017 webcast, hosted by the Anti-Fraud Collaboration, highlights leading practices on assessing and strengthening a company’s corporate culture. Hear from an expert panel, who share actionable recommendations that organizations can implement to deter fraud and misconduct. The panel also addresses oversight responsibilities of audit committee members, company management, and internal auditors. Expanding on insights contained in a 2017 National Association of Corporate Directors Blue Ribbon Commission report, Culture as a Corporate Asset, the webcast covers how culture impacts strategy, risk, and performance.
Slides for this webcast are available for download here.
Chief Compliance Officer
Cindy Fornelli (Moderator)
Center for Audit Quality
Brenda J. Gaines
Tenet Healthcare Corp.
Audit Committee Chair
Head of Regulatory Affairs and Audit Strategy & Transformation
Paul L. Walker
St. John’s University
Schiro/Zurick Chair in Enterprise Risk Management
The risk of fraud should be considered when designing controls throughout financial and business processes. However, there are several reasons to look beyond the traditional approaches to preventing and detecting fraud, writes John Verver at the FEI Daily blog.
Recommendations for encouraging reporting of fraud, ensuring retaliation-free environment
WASHINGTON, DC (Nov. 15, 2017) – Organizations can take substantive actions to address the reporting of suspected financial fraud, according to a new report released by the Anti-Fraud Collaboration. Encouraging the Reporting of Misconduct presents 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.
Formed in 2010 by the Center for Audit Quality (CAQ), Financial Executives International (FEI), The Institute of Internal Auditors (IIA) and the National Association of Corporate Directors (NACD), the Anti-Fraud Collaboration promotes the deterrence and detection of financial reporting fraud.
“The Anti-Fraud Collaboration is pleased to present these recommendations to help companies detect, report, and deter fraud,” Institute of Internal Auditors President and CEO Richard F. Chambers, CIA, QIAL, CGAP, CCSA, CRMA, said on behalf of the Anti-Fraud Collaboration. “No organization is immune to the risk of financial reporting fraud, but all companies can take necessary steps to mitigate such fraud, including encouraging employees to report misconduct, identifying the delinquency earlier in the process, and maintaining the integrity of financial reporting going forward.”
Commented CAQ Executive Director Cindy Fornelli, “Our hope is that the outcome of the roundtable discussions and report will serve as a catalyst for continued dialogue among financial reporting supply-chain participants, the investing public, and other interested parties. Those who observe misconduct should be encouraged to report their observations, and we hope that the report will provide concrete ways companies can provide a safe environment for them to do so.”
The roundtable discussions focused on key issues, including:
“Next to preventive measures, the best defensive tools leadership has to mitigate damage related to financial misconduct are the eyes and ears of their teams,” said Andrej Suskavcevic, president and CEO of FEI. “Establishing a corporate culture that respectfully embraces the reporting of perceived misconduct, together with proper and clearly communicated investigative procedures, can dramatically affect the willingness of staff to participate. Our research aims to help leadership meet those goals.”
Added Peter Gleason, president and CEO of NACD, “One of the most effective things boards of directors can do to promote a healthy working environment is to step up their oversight of company culture. That begins with encouraging management to define its unique culture and communicate it properly to all levels of an organization.”
The report is available for download on the Anti-Fraud Collaboration website.