Anyone involved in the design and monitoring of internal controls should review the ACFE Report to the Nation.  Always interesting reading, especially if you are having a hard time sleeping because of the financial crisis swirling around us like Hurricane Ike bearing down on Galveston.



http://www.acfe.com/documents/2008-rttn.pdf



Read the executive summary, if nothing else.  One quote stands out to me...



"The most commonly cited behavioral red flags were perpetrators living beyond their apparent means or experiencing financial difficulties at the time of the frauds"  Folks, that defines about half of the US right now.  Now, more than ever, it is important to communicate tip lines and open door policies  as well as tune up your fraud prevention mechanisms.



My two cents...



Regards,



Jeffrey T. Hare, CPA CISA CIA



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