A Guide for CFOs for Dealing with Fraud

Abstract

“…the Auditing Standards Board adopted Statement on Auditing Standard (SAS) No. 82, Consideration of Fraud in a Financial Statement Audit…But who is really responsible for detecting and preventing fraud? … We submit that those inside the firm—including the CFO—should take primary responsibility for protecting the entity’s assets. These insiders’ goals are more focused on the entity’s success, and they are in a better position to evaluate the risks of fraud and to take steps to prevent it. In this article, we identify the fraud risks and signals that management should recognize, and the actions they should take to prevent and deter fraud.” (p.45