November 18, 2010

Working Together to Fight Financial Reporting Fraud

Enron. Worldcom. Adelphia. Once upon a time, all were successful companies, the envy of the business world. Until each was undone by financial fraud perpetrated by corporate leadership. When major frauds like these are discovered, investors are left angry and the markets in disarray. We wonder why we didn’t see it coming. We ask, “How did this happen?”

What compels someone to commit fraud — to work hard, rise to the top, then undo his or her life’s work by committing a crime? That question led the Center for Audit Quality (CAQ) to launch an ambitious effort to understand financial reporting fraud, and to mitigate the conditions that can lead to such fraudulent behavior. As part of that initiative, the CAQ has established the first cross functional working group to develop tools and further research on deterring and detecting financial reporting fraud.

Read the full story on The Huffington Post: http://www.huffingtonpost.com/cindy-fornelli/working-together-to-fight_b...