Nobody wants to believe that their company is losing significant revenue to fraud. Understandably, organizations don’t want to spend scarce resources managing risks they don’t consider legitimate. With regulators and prosecutors increasingly holding executives accountable for fraud prevention, however, there’s a strong incentive to replace the old refrain of “no fraud here” with the more proactive “not on my watch.”

Here is a cautionary note: As much as the internal audit profession should be applauded for reaching beyond its accounting roots to strengthen interdepartmental relationships through “soft” skills, such as interpersonal communication, it is critical to maintaining a clear line between improving communication and compromising assurance. While there is a trend toward “consultative” audits, stressing that while surprise audits may sometimes be seen as running counter to an organization’s culture, these types of audits can be an effective fraud deterrent when used in a targeted manner and focused on perceived problem areas or intransigent business units or geographies. That’s not to say such audits can’t be handled with dignity and respect but merely that we need to ensure that when adding the soft skills, we as auditors don’t lose our edge.

Check at these KLplus CPE courses related to fraud:

• Introduction to Fraud (KLplus CPE Course): All organizations are susceptible to fraud. Would you know how to recognize red flags indicating possible fraud?
• Segregation of Duties Principles (KLplus CPE Course): This course defines segregation of duties and identifies the purpose for establishing and monitoring segregation of duties.
• Ethical Standards and PMI® Core Values (KLplus CPE Course): In this course, you will explore the values underlying ethical decisions and behaviors as outlined in the PMI® Code of Ethics and Professional Conduct.