doing business stay as fundamental |
|||
pillars in combating and mitigating occupational |
|||
fraud risks . |
|||
The analysis of the 2022 ACFE report |
|||
and various case studies , such as the |
|||
Bernie Ecclestone and Wirecard scandals |
|||
, highlights the diverse nature of |
|||
fraud . These examples show how a |
|||
blend of opportunity , pressure , and |
|||
rationalization can lead to a significant |
|||
ethical failure and fraud . They also |
|||
emphasize the impact of inadequate |
|||
internal controls and the consequences |
|||
of management override in such |
|||
|
tinuous monitoring and updating to adapt to new risks , regulatory changes , and business developments .
The impact of management override of internal controls presents a critical challenge in implanting effective measures . The Wirecard scandal shows the consequences when company management bypassed these controls ( 5 ).
In conclusion , internal controls are not just procedural formalities ; they are critical tools for organization ' s financial health and reputation . The lessons learned from cases like Wirecard and Ecclestone , highlight the need
|
for continuous improvement , and the importance of a culture of ethics and integrity in implementing and maintaining these controls . As organisations continue to shift towards the complexities of the global market , the role of effective internal controls in detecting and preventing fraud becomes more crucial than ever before .
Conclusion The review of occupational fraud and internal controls in 2023 draws an instructive picture of the challenges and necessities in the new business environment . The critical roles of effective internal controls and ethical ways of
|
controls .
Looking to the future , organizations that wish to retain value must invest time and resources to fraud prevention , as this is key to protecting assets and reputation . The evolving nature of fraud , driven by new technology and changing business practices , shows the need for a diverse approach to fraud risk management . The integration of advanced technologies like AI and data analytic into fraud prevention strategies will be crucial in detecting and preventing sophisticated fraudulent schemes .
|
49 |
REFERENCES : |