Tuesday, June 19 | 1:50-3:05 PM
Level: Advanced
Recommended Prerequisite: Advanced knowledge of and experience with internal controls and fraud schemes
Field of Study: Specialized Knowledge
The risk of management override of internal controls to commit fraud exists in any organization. When the opportunity to override internal controls is combined with powerful incentives to meet accounting objectives, senior management might engage in fraudulent financial reporting.
This session will examine management override, focusing on the differences between the override of existing controls versus other, more prevalent breakdowns. It will also explore actions to help mitigate the threat of management override, approaches to auditing for management override and the psychology behind management’s override of controls.
You Will Learn How To:
- Identify red flags of management overriding controls
- Ascertain an approach to auditing for management override
- Assess the latest trends and research regarding management override of controls
- Develop a better fraud risk assessment that highlights areas and gatekeepers that might have a greater chance of overriding controls
Jonathan Marks, CFE, CPA, CFF
Partner, Marcum LLP
Jonathan Marks is a partner in Marcum’s Philadelphia office and is a member of the firm’s Advisory Services division. He has almost 30 years of experience working closely with his clients, their board, senior management, and law firms on fraud and misconduct investigations, including global bribery, corruption, and compliance matters. He assists his clients in mitigating future potential issues by conducting root-cause analysis, developing remedial procedures, and designing or enhancing governance, global risk management, and compliance systems along with internal controls and policies and procedures.