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FEI Joins Anti-Fraud Effort With CAQ, IIA, NACD
Oct. 6, 2010
FEI Summary
On Oct. 6, 2010, Financial Executives International, the leading organization for senior financial executives, announced it has joined a collaborative effort led by the Center for Audit Quality that is aimed at deterring and detecting financial reporting fraud. Other leading organizations that are part of this effort include The Institute of Internal Auditors (IIA) and the National Association of Corporate Directors (NACD).
Initial efforts will focus on four areas:
- Advancing the understanding of conditions that contribute to fraud
- Developing techniques to enhance the application of skepticism
- Moderating the risks of focusing only on short-term results
- Leveraging the role of technology in deterring and detecting financial reporting fraud
“These four areas represent the beginning of a coordinated longer-term effort that will benefit investors and other users of financial reports,” Fornelli said. “Working together, we have an opportunity to be more effective in reducing the risk of fraud, which – if undetected – can result in a loss of confidence in our financial markets, as well as losses in shareholder value and, in some cases, the bankruptcy of the company itself.”
In related news, CAQ announced the release of its report, Deterring and Detecting Financial Reporting Fraud – A Platform for Action. As noted by CAQ, the report is "a key feature of the CAQ’s financial reporting fraud deterrence and detection initiative and represents a first step in longer-term activities and collaborations." CAQ adds, "The report offers the perspectives of more than 100 participants in CAQ-sponsored roundtable discussions and related points to ponder, as well as insights gained from research and guidance on the topic."
Read more in this FEI press release.
Watch the video below that features CAQ Executive Director Cindy Fornelli and FEI President and CEO Marie Hollein speaking on this important new collaborative effort involving participants in the financial reporting system joining forces toward the goal of detecting and preventing financial reporting fraud.
[print version]
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