Fraud is on the rise, with organisations losing an estimated 5% of their revenue to fraudulent activity each year according to the Association of Certified Fraud Examiners (ACFE). Rising inflation, political tension, and socioeconomic unrest — in addition to the pandemic — have created an ideal environment for all elements of the fraud triangle (motivation, opportunity, and rationalization) to thrive. While boards and senior management are instrumental in developing the right tone from the top to fight fraud, internal auditors should play an essential supporting role in developing positive fraud awareness and prevention culture.
A new joint report by the Chartered Institute of Internal Auditors (CIIA) and AuditBoard examines the increasing threat of fraud and the actions that can be taken by auditors, executive leadership, and boards to fight it. Download the full report, Fraud Is on the Rise: Step up to the Challenge, which includes:
- A breakdown of the state of increasing fraud, current regulatory and policy context, and why fraud is on the rise.
- How Boards and senior management can create the right tone at the top to create a culture that will encourage employees to choose the right path.
- Practical ways internal auditors can better prepare for the increased scrutiny and accountability on fraud from government, regulators, and the public.
