COSO/ACFE publish a new Fraud Risk Management Guide
/The Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the Association of Certified Fraud Examiners (ACFE) jointly published a new Fraud Risk Management Guide (FRMG) in September 2016.
COSO/ACFE developed the guidance because they felt there was a demand for more guidance on fraud risk management. They formed the task force to draft the guidance in January 2015 and they finished their work at the end of 2015.
The guidance is aligned with and supports the five key principles of the 2013 COSO Framework's internal control components. These key principles include: Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring Activities. The FRMG describes five essential processes that are necessary for the effective implementation of the key principles. These processes include:
- Establish a fraud risk governance policy
- Assess your organizations fraud risk
- Design and implement fraud prevention control activities
- Establish reporting and investigation processes
- Monitor the entire fraud risk management process
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