acfe fraud prevention check-up - BKD

• leverages the experience of internal and external auditors regarding;- events or conditions that indicate incentives/pressures to perpetrate fraud, opportunities to carry outthe fraud, or attitudes/rationalizations to justify a fraudulent action.- how and where they believe the entity’s financial statements might be susceptible to materialmisstatement due to fraud.- inquires of management and others within the entity about the risks of fraud.- analytical procedures to identify unusual transactions or events, and amounts, ratios, and trends thatmight indicate matters that have financial statement implications.• oversees the internal controls over financial reporting established by management.• assesses the risk of financial fraud by management.• ensures controls are in place to prevent, deter, and detect fraud by management.• empowers the audit committee and external auditors to look for and report fraud of all sizes and types.O2.4 Assess Oversight Personnel & Team Performance to include the effective exercise of oversight for the entity’sfraud risk management program.O3-Strategic PersonnelO3.1 Define Strategic Structure & Responsibilities using a job description that specifies the role with responsibilityfor, sufficient resources and authority to design and implement a fraud risk management program including thesetting of policy, establishing of controls, training, implementing anti-fraud initiatives, processes for reporting andinvestigating alleged violations, and reporting to the board on the progress of program toward objectives, the statusof investigations, activities in relation to detecting and mitigating incidents of fraudulent or corrupt behavior andany remedial steps for program improvement.O3.2 Screen & Select Strategic Personnel to confirm that the individual vested with responsibility for the program iswell-qualified and an appropriate model (as determined, in part, by a background check).O3.3 Enhance Strategic Skills & Competencies in program management techniques like vision, mission andvalues development, risk assessment, program effectiveness and performance evaluations, control development,investigations management, as well as a thorough understanding of the organization’s fraud risks and process levelcontrols.O3.4 Assess Strategic Personnel & Team Performance compared to fraud risk management program performancetargets and individual performance targets.O4-Operational PersonnelO4.1 Define Operational Structure & Responsibilities that address the fraud risk management responsibilities ofall levels of operational personnel, including participate in the process of creating a strong control environment,designing and implementing control activities, and participate in monitoring activities, reporting incidences offraud and corruption, paying particular attention to the unique roles of internal audit, compliance, ethics, and legalprogram implementation and investigation roles.O4.2 Screen & Select Operational Personnel to confirm that the individuals vested with responsibility for variousaspects of the fraud risk management program are not compromised in their effectiveness or unduly pose greaterrisk to the organization by virtue of past violations of ethical standards and/or unlawful behavior.71