Anti-Fraud Initiative
Financial reporting fraud is an ongoing concern for investors and other capital market stakeholders. While there is no silver bullet solution for eliminating fraud, the Center for Audit Quality’s (CAQ) Anti-Fraud Initiative endeavors to increase collaboration and communication among members of the “financial reporting supply chain” to help advance efforts to lessen fraud risk.
The CAQ’s collaboration with groups like Financial Executives International (FEI), the National Association of Corporate Directors (NACD) and The Institute of Internal Auditors (The IIA), as well as other interested parties, will leverage existing resources and facilitate the development of tools and information targeted to each stakeholder group.
Anti-Fraud Collaborative Activities
| FEI Launches Fraud Literacy Quiz |
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Financial Executives International (FEI) has developed a new Fraud Literacy Quiz. The quiz, which is open to the public, comprises a series of questions designed to assess an individual’s knowledge on topics related to deterring and detecting financial reporting fraud. Click here to begin the quiz. In addition, a feature article in the November issue of Financial Executive magazine is available online. FEI is offering free CPE credits to individuals who read the article and successfully answer questions about its content. (Note: After reading this article, non-members seeking CPE Credit will be asked to create an account in FEI’s CPE Center prior to taking the quiz. There is no charge to open an account.) |
Deterring and Detecting Financial Reporting Fraud – A Platform for Action In 2009, the CAQ hosted five substantive discussions on fraud deterrence and detection across the U.S. and in London. Participants in the discussions represented company management, boards of directors, audit committees, internal and external auditors, regulators, investors, academics, and financial media. The findings from these events, as well as in-depth interviews and related research on the issue of financial reporting fraud at public companies are the basis of the CAQ’s report, Deterring and Detecting Financial Reporting Fraud – A Platform for Action. |
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| CAQ Executive Director Cindy Fornelli and Governing Board Co-Vice Chair Michele Hooper discuss the CAQ’s anti-fraud initiative in two videos. In the first video – “Deterring and Detecting Financial Reporting Fraud – A Platform for Action” – Hooper and Fornelli discuss the findings of the CAQ’s new anti-fraud report, including the conditions that lead to fraud, the themes that can mitigate those conditions and the CAQ’s collaborative partners with FEI, NACD and The IIA. In the second video – “The Case for Collaboration: Increasing Anti-Fraud Effectiveness Across the Financial Reporting Supply Chain” – Fornelli and Hooper describe possible areas for future work and collaboration that would enhance thinking around fraud deterrence and detection. Among the areas for future collaboration: advance the understanding of the conditions that contribute to fraud; promote efforts to enhance skepticism; moderate the risks inherent in focusing only on short-term results; explore the role of information technology in deterring and detecting fraudulent financial reporting. Prior to the release of Deterring and Detecting Fraud, the Association of Certified Fraud Examiners interviewed Fornelli to discuss the CAQ’s anti-fraud initiative and preview the findings of the CAQ’s report. |
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| Video: Deterring and Detecting Financial Reporting Fraud – A Platform for Action | |
| Video: The Case for Collaboration: Increasing Anti-Fraud Effectiveness Across the Financial Reporting Supply Chain |
Anti-Fraud Initiative Events
In a collaborative effort with key stakeholder groups, the CAQ will participate and has participated in the following events to discuss deterring and detecting financial statement fraud:
| DATE | EVENT | LOCATION |
| Monday, November 7, 2011 | Detecting & Deterring Financial Reporting Fraud (Hosted by the CAQ and Financial Executives International) | Denver, CO |
| Tuesday, November 1, 2011 | Detecting & Deterring Financial Reporting Fraud (Hosted by the CAQ and Financial Executives International) | Long Beach, CA |
| Wednesday, October 12, 2011 | Detecting & Deterring Financial Reporting Fraud (Hosted by the CAQ and Financial Executives International) | New York, NY |
| Monday, October 10, 2011 | Detecting & Deterring Financial Reporting Fraud (Hosted by the CAQ and Financial Executives International) | Atlanta, GA |
| Thursday, September 20, 2011 | Ethics and Compliance Officers Association 19th Annual Ethics and Compliance Conference | Seattle, WA |
| Tuesday, August 30, 2011 | The IIA’s 2011 Governance, Risk, and Compliance Conference | Orlando, FL |
| Wednesday, June 22, 2011 | AICPA Audit Committee Forum | Washington, DC |
| Tuesday, June 14, 2011 | Detecting & Deterring Financial Reporting Fraud (Hosted by the CAQ and Financial Executives International) | San Francisco, CA |
| Wednesday, May 25, 2011 | Detecting & Deterring Financial Reporting Fraud (Hosted by the CAQ and Financial Executives International) | Dallas, TX |
| Monday, May 16, 2011 | Detecting & Deterring Financial Reporting Fraud (Hosted by the CAQ and Financial Executives International) | Boston, MA |
Tuesday, May 10, 2011 |
Detecting & Deterring Financial Reporting Fraud (Hosted by the CAQ and Financial Executives International) | Chicago, IL |
| Friday, April 8, 2011 | The Directors’ Institute | Washington, DC |
| Monday, March 14, 2011 | The IIA’s 2011 General Audit Management Conference | Las Vegas, NV |
| Tuesday, January 11, 2011 | KPMG/NACD Quarterly Audit Committee Webcast | Chicago, IL |
| Monday, December 6, 2010 | AICPA National Conference on Current SEC and PCAOB Developments | Washington, DC |
| Monday, November 8, 2010 | 18th World Congress of Accountants | Kuala Lumpur, Malaysia |
| Tuesday, October 26, 2010 | SEC Historical Society Deloitte Fireside Chat IV: Responsibility for Preventing and Detecting Financial Reporting Fraud | Washington, DC |
| Monday, October 25, 2010 | NASBA 103rd Annual Meeting | San Antonio, TX |
| Monday, October 18, 2010 | National Association of Corporate Directors Corporate Governance Conference | Washington, DC |
| Monday, August 2, 2010 | American Accounting Association Annual Meeting | San Francisco, CA |
| Sunday August 1, 2010 | CAQ Symposium on “Audit Practice Meets Audit Research” | San Francisco, CA |
| Friday, July 30, 2010 | AICPA National Audit Committee Forum | Washington, DC |
| Tuesday, July 27, 2010 | 21st Annual Association of Certified Fraud Examiners Fraud Conference | Washington, DC |
| Tuesday, April 27, 2010 | Financial Executives International 2010 Leadership Summit | Las Vegas, NV |
