January 16, 2015

Accounting Policy & Practice Report

In building a fraud-resistant organization, companies must encourage ‘‘manageable dissent,’’ where em- ployees feel they can voice views that diverge from ‘‘group think,’’ a panelist said Jan. 8.

Ken Daly, president and chief executive officer of the National Association of Corporate Directors, also said that although setting the tone at the top is easy, ‘‘setting the tone at the middle’’ is just as important. He ob- served that a lot of financial reporting fraud starts somewhere at the middle of the organization.

‘‘What my experience indicates is that evangelizing’’ the tone at the middle ‘‘can be extremely difficult, and we need to look at different ways to get that accom- plished,’’ he said.

Daly spoke at a webcast sponsored by the Anti-Fraud Collaboration to discuss a recent report, ‘‘The Fraud- Resistant Organization: Tools, Traits, and Techniques to Deter and Detect Financial Reporting Fraud.’’