What's your fraud IQ? 6

Abstract : Effective fraud risk management Late last year, the Committee of Sponsoring Organizations of the Treadway Commission (COSO), of which the AICPA is a member, and the Association of Certified Fraud Examiners (ACFE) jointly released a newly updated Fraud Risk Management Guide that provides organizations with practical guidance on designing, implementing, evaluating, and strengthening fraud risk management programs that align with the 2013 COSO Internal Control-Integrated Framework. According to the guide, for a fraud risk management system to be effective, each of these fraud risk management principles is present, functioning, and operating in an integrated manner. [...]the guide specifically discusses: * How data analytics techniques should be used to improve the effectiveness and results of the fraud risk assessment. * The use of proactive data analytic processes and procedures to identify anomalous transactions or events for further investigation as one of the primary characteristics of effective fraud control activities. * The need for an ongoing data analytics plan as part of the organizations fraud risk management monitoring activities. 3. (c) Appendix B to the Fraud Risk Management Guide provides detailed information about the specific roles and responsibilities for fraud risk management within an organization. According to the guide, Senior management has overall responsibility for the design and implementation of a Fraud Risk Management Program, including setting the tone at the top that creates the culture for the entire organization. To help organizations effectively implement this component, the Fraud Risk Management Guide provides that an effective fraud risk assessment involves: * Including... 56

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