Following on from the release of CIFAS’ Fraudscape report earlier this week, Matthew Weitz, Associate Managing Director at Kroll, a division of Duff & Phelps, outlines how empowering internal audit is one of the key ways to tackle the growing fraud problem.
Matthew Weitz, comments on the findings of CIFAS’ Fraudscape 2020 report:
“It was no surprise to see fraud cases rise last year, but it raises a number of concerns for senior executives and those responsible for fraud management. CIFAS’ latest Fraudscape report exposes a trend we’ve been witnessing around the growing threat of internal fraud in particular, and also what has enabled this to rise.
“One of the areas where we’re seeing more engagement to tackle internal fraud is in the internal audit space; successful fraud management can be enhanced by internal audit taking a more collaborative and strategic role in tackling the issue. A recent survey jointly undertaken by Kroll and the Internal Audit Foundation showed that internal audit teams need to be empowered to take on a more proactive role when dealing with fraud risks. Additionally, the survey revealed several barriers to more involvement remain, with 80% of survey respondents identifying barriers. This, of course, needs to be combined with a strong culture of compliance set from management and the implementation of robust control processes throughout the organisation.”
“Threats will continue to proliferate throughout the ongoing COVID-19 pandemic, and so we can’t afford to take a back seat in the fight against fraud. Building a strong compliance culture, ensuring robust control and empowering internal audit teams ought to be at the forefront of decision makers’ minds. Otherwise, next year’s report could reveal an even starker picture.”
