nBeyond what management says, how they act is instrumental in shaping perceptions of the culture and their attitude toward fraud prevention.
nManagement is responsible for implementing the overall fraud risk management program.
nThis includes their direction and oversight over the system of internal controls, which must be designed and operated in a manner to prevent fraud incidents or detect them timely.
- nManagement must also establish a system of monitoring and reporting that will enable them
- to evaluate whether the fraud risk
- management program is operating effectively.
nThis helps provide them with timely and relevant information that can be reported to the board.
nIt is common in many organizations to assign a member of management the responsibility for overseeing the fraud risk management program.
This individual should be at a sufficiently high level in the organization to reinforce management's commitment to preventing and deterring fraud