April 4, 2013

CAQ Releases “Fighting Fraud” Video

Washington, D.C. –In “Fighting Fraud,” a new video created by the Center for Audit Quality (CAQ), external auditor Ledger Lines asks, “What makes an honest Joe become a fraudster?”

Conditions may exist that lead Joe to commit financial reporting fraud, but as the video demonstrates, there are ways to mitigate those conditions and lower the risk of financial reporting fraud. In the new video, the members of the System of Investor Protection – Ledger, Audit Committee Chair Indy Pendent, CFO Lotta Charts, Internal Auditor Ida Figures and Regulator Johnny Law – are back to show how they contribute to the effort. “Fighting Fraud” is the fourth episode in the CAQ’s series of videos designed to inform investors and the general public about the people, laws and requirements that make sure the financial reporting process protects investors’ interests.

“Financial reporting fraud has a profound negative impact on investors’ confidence in public companies and the capital markets,” said CAQ Executive Director Cindy Fornelli. “The CAQ’s new video explains how members of the system of investor protection work to mitigate the conditions that can lead to fraud and protect investors by working to ensure the integrity of financial information released by public companies.”

The video explains the responsibilities of audit committee members, financial executives, internal auditors and external auditors to lower the risk of financial reporting fraud. Lotta Charts helps set a strong and ethical tone at the top of the company. Ledger Lines must exercise professional skepticism when assessing audit evidence. Indy Pendent oversees the financial reporting process and makes sure that whistleblower reports on financial reporting fraud are carefully evaluated. Ida Figures assesses the company’s fraud risk management and testing controls to see if they work as intended.

“Fighting Fraud” follows previous episodes in the video series, including “The System of Investor Protection,” “The Financial Statement Audit” and “The Audit Committee.” All four videos videos are available, free of charge, on CAQ's website. They also are available on the CAQ’s YouTube channel, as well as on Facebook and Twitter.

The new video also is an important contribution to financial reporting fraud deterrence and detection resources, and can be accessed on www.AntiFraudCollaboration.com, the website for the CAQ’s collaboration with the National Association of Corporate Directors, The Institute of Internal Auditors and Financial Executives International.

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The Center for Audit Quality (CAQ) is an autonomous public policy organization dedicated to enhancing investor confidence and public trust in the global capital markets. The CAQ fosters high quality performance by public company auditors, convenes and collaborates with other stakeholders to advance the discussion of critical issues requiring action and intervention, and advocates policies and standards that promote public company auditors’ objectivity, effectiveness and responsiveness to dynamic market conditions. Based in Washington, D.C., with an office in New York, NY, the CAQ is affiliated with the American Institute of Certified Public Accountants. For more information, visit www.thecaq.org.