Academic journal article Journal of Accountancy

AICPA Continues Attack on Fraud. (Highlights)

Academic journal article Journal of Accountancy

AICPA Continues Attack on Fraud. (Highlights)

Article excerpt

As part of an ongoing campaign, the Institute--in concert with the Association of Certified Fraud Examiners (ACFE)--released a free PC-based training program, "How Fraud Hurts You and Your Organization," that helps CPAs and the business community provide fraud-prevention training to clients and employees at all levels.

AICPA President and CEO Barry C. Melancon said the purpose is to raise awareness of fraud within the accounting profession and corporate America. "We must understand the human element--why people commit fraud and what factors and opportunities influence them," he said. "This kind of knowledge is the first line of defense in developing and deploying effective antifraud programs and controls within every business in America."

The one-hour training program shows both how trusted employees can be tempted to commit fraud and what employees can do to protect themselves and their organization from fraudulent activity. The course explains the three elements of the "fraud triangle" that must be present for an individual to commit fraud: financial need or desire, the ability to attribute one's criminal acts to ethical motives and the perception that it is possible to avoid detection. It also provides actual case studies of major frauds and their perpetrators, including the CFO of a chain of retail electronics stores, a corporate accounting manager and a bank teller, each of whom significantly damaged their organizations before their scams came to light. As the training program explains, the victimized companies' failure to recognize the warning signs of fraud made it easier to steal from them.

The training program is the latest effort in the AICPA's antifraud and corporate responsibility program, which Melancon announced in a September 4 speech at the Yale Club in New York. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.