20 Years After Sarbanes-Oxley

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20 Years After Sarbanes-Oxley

Sarbanes-Oxley, my how you’ve grown. It is hard to believe that the Sarbanes-Oxley Act of 2002 turned 20 years old in July. While some of us feel like we are in 2019 or 2020, still trying to process the way the world has been influenced by the pandemic, surely SOX wasn’t TWENTY YEARS AGO? Yet, here we are. Arthur Andersen, Enron and WorldCom certainly left behind a legacy that changed the financial world, especially that of the public company.

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From the President: Moxie and the Fight Against Corruption

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From the President: Moxie and the Fight Against Corruption

Our profession requires plenty of insight and knowledge to understand the fraud landscape. But it also takes a good measure of moxie. Thulisile “Thuli” Madonsela is one of those unique people who possesses that know-how and fortitude — at an extraordinary level.

Her hard-fought battles against corruption at the highest levels of the South African government only prove this. The ACFE honored that strength in June when we presented Madonsela with the Cressey Award for a lifetime of achievement in the detection and deterrence of fraud.

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How Fraudsters Exploit the Capabilities of Contract Employees to Conduct Their Schemes

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How Fraudsters Exploit the Capabilities of Contract Employees to Conduct Their Schemes

If you are familiar with fraud, you may be acquainted with The Fraud Triangle, which is a model for explaining the factors that cause someone to commit occupational fraud. It consists of three components which, when brought together, can lead to fraudulent behavior: opportunity, pressure and rationalization.

There’s an extension of this fraud theory, known as the fraud diamond, which includes a fourth element: capability.

Capability refers to someone having the necessary traits, skills and abilities to commit fraud. It’s how the fraudster not only recognizes a particular fraud opportunity but turns it into reality.

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Fraud Talk: Accountability at All Levels

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Fraud Talk: Accountability at All Levels

In the most recent episode of Fraud Talk, Deidra Jackson, founder and manager of Opus Strategies, discusses the intersection of compliance, ethics and culture when building a diversity, equity and inclusion program within an organization. She shares actionable advice and real-life examples of how to not just check the boxes, but make a real and lasting shift in company culture.

In the excerpt below from the full transcript of episode 108, Jackson illustrates how networking and mentoring can create solid career paths for those belonging to underrepresented groups.

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The Archer’s Paradox of Compliance Communication

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The Archer’s Paradox of Compliance Communication

The archer’s paradox explores the idea that in order to hit your target, an arrow has to bend around the bow. In order to achieve this, you must have an arrow with the right flexibility. An organization’s communication related to anti-fraud policies and professional integrity, which can include topics like conflicts of interest, employee code of conduct, insider information, managing confidential information, whistleblowing and hotlines, and more, should aim to tackle and reduce fear, nervousness and whispers. Every individual within an organization should feel comfortable bringing up a potential ethics issue.

So if the aim of your organization’s communication is to remove fear, think of the archer’s paradox. Your communication should be flexible, willing to bend and reshape through constant communication, as well as by demonstration of what is being discussed. Just like an arrow bends back and forth several times before meeting its target, we need to repeatedly discuss, train and remind employees of our values in order to advocate the importance of professional integrity.

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