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The AICPA Antifraud Programs and Controls Task Force has issued Management Override of Internal Controls: The Achilles' Heel of Fraud Prevention -- The Audit Committee and Oversight of Financial Reporting. This document offers assistance to audit committees in addressing the risk of fraud arising from management override of internal control over financial reporting. The document contains guidance on:
- Maintaining an appropriate level of skepticism
- Strengthening the audit committee's understanding of the business
- Brainstorming to identify fraud risks
- Using the code of conduct to assess financial reporting culture
- Cultivating a vigorous whistleblower program
- Developing a broad information and feedback network including communications with internal auditors, independent auditors, the compensation committee and key employees
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