Menu6/3/16: Only slightly less comfortable than accusing someone of fraud is asking key members of management about their organizational fraud risk assessments. Yet, notwithstanding the potential discomfort, auditors are faced with doing just that if they plan to conduct effective audits of a company’s organization risk for fraud and corruption. In an article by Pamela W. Baker, CPA, CGFM, (Barbacane, Thornton & Company LLP) published on the Pennsylvania Institute of Certified Public Accountants’ website, the issue of “fraud interviewing” is tackled head on. In a short article packed with information primarily for CPAs doing independent audits, Baker gives corporate compliance professionals a heads-up about what auditors need to ask – and what they should be asking when they do their own internal audits. One of those provisions, according to the Guardian article: “Should an employee be charged with money laundering, the company will be deemed liable if it cannot show that it had put procedures in place to prevent money laundering and fraud.”
