January 29, 2017
What is the resilience of an entity in preventing, deterring,
and detecting fraud and corruption?
Part 1(D) Fraud and Corruption Detection in a
For-Profit Organization
Detection of fraud and corruption is directly related to fraud and
corruption prevention and deterrence. While prevention of corruption is
fundamentally based on anticipating what could or may go wrong, detection of
fraud and corruption is principally designing and implementing policies,
processes, and procedures to find out when fraud and corruption occur.
Therefore, one will never systematically detect a fraud or corruption incident
unless it was initially expected to happen. An effective internal control
system is a partial answer for detecting fraud and corruption.
Presuming a proper tone is set at the top, the foundation of
detecting fraud and corruption consists of the following pillars:
1.
Effective internal control system
2.
Effective corruption prevention policy
3.
Proper anti-corruption competencies of board members, executive
management, and employees
4.
Effective support functions
As we will discuss each of these pillars separately in the
anti-corruption series, the following section briefly discusses their
fundamental importance and impact on fraud and corruption detection.
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when they log in to the membership portal or click here.
We will start rolling over the CACM via exam in selected countries
and regions. CACM candidates of these countries will find the CACM Review
material helpful.
