building a strong corporate culture …...internal audit, risk, business & technology consulting...

Internal Audit, Risk, Business & Technology Consulting

BUILDING A STRONG CORPORATE CULTURE BEGINS WITH MANAGING FRAUD RISK

Assessing the Results of the Latest White-Collar Crime and Fraud Risk Survey

Protiviti Dallas CPE DaySeptember 21, 2018

© 2018 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and

does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners.

TODAY’S PROTIVITI SPEAKER

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Pamela Verick, Director

Protiviti Forensic

[email protected]

+1.703.299.3539

FRAUD IN NUMBERS


does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners.4

REPORT TO THE NATIONS (ACFE)EXCERPTED FROM THE 018 GLOBAL STUDY ON OCCUPATIONAL FRAUD AND ABUSE

A QUICK LOOK:

PROTIVITI’S WHITE COLLAR CRIME AND FRAUD RISK SURVEY RESULTS


does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners.6

https://www.protiviti.com/US-en/insights/protiviti-fraud-risk-

survey?utm_source=blog&utm_medium=blog&utm_campaign=whitecollarcrimesurvey

https://www.protiviti.com/US-en/insights/protiviti-fraud-risk-survey?utm_source=blog&utm_medium=blog&utm_campaign=whitecollarcrimesurvey



WHEN IT COMES TO BUILDING A STRONG

CORPORATE CULTURE, “FRAUD RISK MANAGEMENT”

REMAINS A BIT OF A MISNOMER

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Organizations continue to lag in employing leading

practices to build a strong culture.

Resources represent a significant challenge in building a

strong corporate culture with a clear fraud risk strategy.

Many companies lack a fraud risk management program,

including policies to mitigate fraud.

Third parties represent a significant gap in fraud risk

management.

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Our Key Findings



ORGANIZATIONS CONTINUE TO LAG IN EMPLOYING

LEADING PRACTICES TO BUILD A STRONG CULTURE

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RESOURCES REPRESENT A SIGNIFICANT

CHALLENGE IN BUILDING A STRONG CORPORATE

CULTURE WITH A CLEAR FRAUD RISK STRATEGY

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MANY COMPANIES LACK A FRAUD RISK

MANAGEMENT PROGRAM, INCLUDING POLICIES TO

MITIGATE FRAUD

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THIRD PARTIES REPRESENT A SIGNIFICANT GAP IN

FRAUD RISK MANAGEMENT

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DATA ANALYTICS, FRAUD AND THE PATH FORWARD



DATA ANALYTICS, FRAUD AND THE PATH FORWARDDoes your organization have a fraud detection program? (Shown: “Yes”

Responses)

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DATA ANALYTICS, FRAUD AND THE PATH FORWARD (CONT.)

If Yes: Who in your organization is responsible for the fraud detection program?

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Does your organization actively utilize forensic data analysis to identify

potential red flags and fraud indicators (i.e., fraud detection techniques)?

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How often does your organization conduct surprise audits within the organization?

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Which of the following procedures has your organization established for the submission

of concerns by employees about questionable accounting or auditing matters?

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REPORTING, INVESTIGATION AND CORRECTIVE ACTION



REPORTING, INVESTIGATION AND CORRECTIVE ACTION

What level of involvement does your organization’s Audit Committee have in the

investigation of alleged fraud or misconduct?

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REPORTING, INVESTIGATION AND CORRECTIVE ACTION (CONT.)

What level of involvement does your organization’s Audit Committee have in the

investigation of alleged fraud or misconduct?

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IN CLOSING

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• The importance of corporate culture is garnering an

unprecedented amount of media and organizational

attention, and yet, there has not been an equal

amount of introspection or root cause analysis as to

what has led to some of the more noteworthy fraud

and misconduct cases occurring in the last year.

• Understanding the interplay between fraud,

corruption and corporate culture — and the controls

necessary to mitigate ethical failures — can

accelerate efforts to affect positive organizational

change and process improvements.

• In today’s business environment, executives need to

ask themselves one question:

Do we want to be viewed as leaders of

ethical business practices or are we willing

to risk being the latest headline involving a

toxic culture that ultimately results in

embarrassing — and costly — fraud and

misconduct?

© 2018 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed

or registered as a public accounting firm and does not issue opinions on financial statements or

offer attestation services. All registered trademarks are the property of their respective owners.

building a strong corporate culture …...internal audit, risk, business & technology consulting...

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