A Practical Guide to the Board’s Oversight of Fraud

How much is fraud costing your organization? The Association of Certified Fraud Examiners (ACFE) in their biannual 2024 Report to the Nations indicated organizations lose 5% of their revenue to fraud each year.

In a time when fraudulent activities are viewed as on the rise and it is understood that these dishonorable activities can lead to monumental losses, shatter the trust of investors, and instigate severe legal consequences, the need for board members to remain vigilant and inquisitive is paramount. The COSO Fraud Risk Management Guide emphasizes the devasting impact that fraud can inflict on an organization; accentuating the crucial function of audit committees in cultivating a culture of adherence, honesty and accountability. The board can set the foundation of an effective control environment by consistently setting the expectation for and demonstrating a strong no tolerance “Tone at the Top.”