Fraud Prevention and Detection

FRAUD PREVENTION AND DETECTION

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and detection need to be set. In addition, objectives need to address the

avoidance of endangerment of the very existence of an organization.

There is an optimal level of compliance risk assurance just as there is

for fraud risk management, as set out in Figure15.10.

The benets of compliance need to reect:

• The cost of noncompliance

• The intensity of punishment in civil and criminal proceedings

• The intensity of reputational losses

These form part of these costs of noncompliance. Due to the severity

of penalties, the “benets curve” can be assumed to be more of a steep

shape with a clearly dened peak.

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