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Anti-Fraud Body Calls for New Actions to Fight Corporate Fraud NEW YORK, July 25, 2002 The world's largest anti-fraud organization, the Association of Certified Fraud Examiners (ACFE), recently called for four new actions to fight corporate fraud. ACFE President and CEO, Toby J.F. Bishop, CFE, CPA, FCA, said, "The proposals made by Congress and President Bush may help, but they are insufficient to solve the problem of corporate fraud. Without additional actions to level the playing field between those committing fraud and those trying to stop it, auditors and investors simply don't stand a chance."
Bishop added, "Fraud is like cancer. Passing a law against it won't make it go away. We need to focus on improving our prevention and detection measures to reduce the chance of it occurring and to catch it sooner when it does occur, as it inevitably will. With the latest techniques the risk can be reduced, though unfortunately not eliminated."
"Congress has put auditors under intense pressure, but hasn't given them the tools they need to enable them to be successful," said Bishop.
The ACFE is calling for four additional actions to prevent and detect corporate fraud. The ACFE recommends that all public companies be required to:
Bishop said, "Most companies have inadequate fraud prevention programs to protect themselves from fraud losses, let alone to protect investors from fraud by corporate executives. People think that fraud won't happen, but given the opportunity, it will. The trick is to reduce the opportunity for fraud."
To help corporate America quickly identify the major gaps in its fraud prevention programs, the ACFE has developed a "Fraud Prevention Check-Up." It can be downloaded free from the ACFE's Web site at www.cfenet.com.
Fraud of one type or another occurs in almost every business today, costing American businesses approximately 6 percent of revenues or $600 billion annually, according to the ACFE's 2002 Report to the Nation on Occupational Fraud & Abuse. The ACFE also recently published The Small Business Fraud Prevention Manual, a guide designed to address the specific needs small businesses have to protect themselves from the costly and sometimes devastating consequences of fraud. The entire 2002 Report to the Nation and an excerpt of The Small Business Fraud Prevention Manual are available for free downloading at www.cfenet.com.
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