Preventing fraud has always been a concern for organizations; in the new regulatory world, it has become a matter of law. While the cost of fraud and penalties for non-compliance are in themselves important considerations, today’s zero-tolerance environment means that fraudulent financial reporting or misappropriation of assets can have serious ramifications for an organization and in some circumstances even spell the demise of an organization.

Anti-fraud activities are an essential element of the internal control system CEOs and CFOs are required to certify. As a result, the roles of management and audit committee members in preventing fraud are more critical than ever. To demonstrate due diligence — and minimize risk — they must understand all possible sources of fraud, and implement programs and controls that can detect and deter these activities.

Both the Canadian Securities Administrators (CSA) and the U.S. Securities and Exchange Commission (SEC) have signaled that measures protecting companies against fraud are an integral part of overall internal controls. While neither regulator has provided specific parameters for anti-fraud programs, Deloitte has developed a framework to help companies establish anti-fraud programs that can help them prevent, deter and detect fraudulent activity.

Our article on developing an anti-fraud program addresses the cost of fraud, provides an overview of existing and pending rules, and outlines the four key components of an effective anti-fraud program. Download the complete article, “The anti-fraud program: Protecting assets and reputation"  here.

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