Management may soon face more skeptical audit committees as accounting experts offer new advice on when a management decision to override internal controls could be a red flag for fraud.
The American Institute of Certified Public Accountants has issued new guidance for audit committees that describes six key measures committees should take to help guard against instances where fraud is hidden by management decisions that otherwise seem legitimate. AICPA’s Antifraud Programs and Controls Task Force issued the guidance to help sensitize audit committees to their role as an important gatekeeper in preventing fraud.
