Fraud Prevention and Detection

SCREENING, SCRUTINIZING, AND INVESTIGATING RED FLAGS

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order to ensure that complete independence and objectivity is achieved,

it is important that all personnel appointments, along with the control of

this ofce, are retained directly by the board. The board is then able to

carry out an effective risk management program and focus on the high-

risk issues that surface from time to time.

All reports from internal audit should be submitted directly to the

board or audit committee rather than to management. Once a report is

submitted, it may then be disseminated to management and onward

within the organization.

In addition, the board or audit committee members can assign spe-

cic tasks to internal auditors to assist in screening or scrutinizi