The precise effect the COVID-19 pandemic is having on financial fraud remains undetermined, and regulatory enforcement actions against accounting violations can take years to piece together.
But at a recent AICPA conference, forensic accounting specialists drew attention to some areas worth examining for financial executives, directors and auditors.
The specialists reported early indications that the pandemic’s severe financial pressure may tempt some employees to be overly aggressive in meeting budget cuts or sales quotas. Investigators caught some frauds a relatively early stage, suggesting internal controls are effective in rooting out problems before they become material to investors.
For more highlights and ways to prevent potential financial fraud, click here.