NULL HYPOTHESIS: Fraud Can Be Avoided By Way Of Internal Controls & Balanced With Preventive, Deterrent & Detective Principles
ENEMIES OF INTERNAL CONTROLS 1. Deceitful & Immoral People 2. Time: Be Content, but not complacent (lazy)...always learn and grow. 3. Judgments : Observe, But Don’t Condemn Without Tangible Evidence 4. Over-anxious: authentic and honest people make mistakes and errors; Now use these mistakes and/or errors as LESSONS LEARNED. Historians have traced the roots of internal auditing to centuries B.C., as merchants verified receipts for grain brought to market. Any and all fraud risk assessments starts with an identification (i.e., who are you, your beliefs & values) and prioritization of fraud risks (i.e., don’t major on the minor) that exist in the business. The process evolves as the results of that identification and prioritization begin to drive education, communication, organizational alignment, and action around effectively managing fraud risk and identifying new fraud risks as they emerge. The fraud risk assessment should be reviewed periodically, but no l