acfe fraud prevention check-up - BKD

O-Organization / PersonnelO1-Leadership & ChampionsO1.1 Define Leadership & Champion Responsibilities to include communicating how fraud risk managementprogram objectives facilitate organizational objectives, how individuals contribute to achieving program objectivesand why the program is and should be supported enterprise wide.O1.2 Screen & Select Program Leadership & Champions to assure that the leaders and champions are qualified toserve as advocates for anti-fraud messaging based upon prior upstanding conduct or remorseful transformationfrom prior fraudulent/corrupt or otherwise inappropriate conduct.O1.3 Enhance Champion Skills & Competencies to include a thorough understanding of fraud, stressors that triggerfraudulent conduct, and the scope, parameters and activities of the fraud risk management program.O2-Oversight PersonnelO2.1 Define Oversight Structure & Responsibilities to:• include in the appropriate charter documents whether the entire board, a board member, or a boardcommittee has been assigned oversight responsibilities for directing the activities of the fraud riskmanagement program,• evidence a commitment to a proactive approach to fraud risk management.• play an active role in the risk assessment process, and using internal audit, and external auditors, asmonitors of fraud risks.• appoint one executive-level member of management to be responsible for fraud risk management.• approve sufficient resources in the budget and long-range plans to enable the organization to achieve theseobjectives.• ensure that management designs effective fraud risk management policies to encourage ethical behaviorand to empower employees, customers, and vendors to insist those standards are met everyday.• model good board governance practices (like board independence, ) as a component of the fraud riskmanagement program.• require that the audit committee meet separately with the external audit firm and chief audit executive todiscuss the results of the anti-fraud program on the entity’s financial statements.• ensure the board is receiving accurate and timely information from management, employees, internal andexternal auditors, and other stakeholders regarding potential fraud occurrences.• assure protection of all requisite privileges and adherence to information management policy forcommunications related to fraud investigations and audit committee discussions.O2.2 Screen & Select Oversight Personnel to identify the board member(s) best suited based upon skills, experience,knowledge, and character (based in part upon the results of background checks) to provide anti-fraud programoversight.O2.3 Enhance Oversight Skills & Competencies so the board:• has a thorough understanding of what constitutes fraud and corruption risk.• sets the appropriate “tone at the top” in its own independent practices and through the CEO jobdescription, evaluation, and succession-planning processes.• maintains oversight of the fraud and corruption risk assessment.• evaluates management’s identification of fraud and corruption risks.70