The Audit Status

Developer: MsF.Econ. VELEZ FELIX CAMPOVERDE

University Professor, Business Advisory and Financial Expert

Guayaquil, Ecuador

AUDIT STATUS

(Internal Audit Fraud)

"Fraud is a matter of behavior and values?

The Audit Status, is being increasingly required by the corporate governance of public and private entities, because many companies are losing their financial position patrimonialpor internal fraud which they conduct their own employees and directors for misappropriation of funds, and misappropriation of goods or services.

The internal business fraud is widespread in the world and the most difficult to investigate and penalize the arrangements are varied ranging from the simple and naive as the destruction or loss of documentation, to the most sophisticated in the creation of financial accounting fraud accounting games with accounts of assets and liabilities and results, ie an entire re-engineering using available means as technology advances, this goes far beyond our imagination, by the mere fact occupy a leading position to make decisions where the confidence of their managers and society is no longer a real value duty and responsibility worst a code of ethics that must be satisfied. Since then the employee loyalty to companies has deteriorated, and entrepreneurs and managers have a very low level of awareness of the problem. This prevents them from taking action simple and easily applied to reduce this loss of profitability and confidence.

The Audit Status .- It is defined as the audit to investigate and investigate the illicit enrichment of employees and executives in undertaking internal fraud, as reflected in the reports of legal liability.

The level of assets and / or level of spending is not commensurate with the amount of income from salaries, financial pressures to negotiate with some suppliers, frequent links with third parties who hold bad reputation for shady business, the insistence on illegal and legal, grievances and feelings rematch with the company or entity and the extravagant lifestyle are common signs of repeated alarm bells in the process of Audit Status, tracks that will undoubtedly result in positive signs of collusion among employees or affiliated parties.

There are statistics that indicate levels of honesty and dishonesty, and probability values ​​of internal fraud in the absence of internal controls and effective action to anticipate the risks of fraud, no doubt that fraud is on internal controls betray, because fraud indicates the degree of maturity and integrity of an organization and how its executives and employees will feel identified with the company and the role they play in their place or position.

Despite the policies of fidelity that is engaged, and the affidavits of assets and personnel requiring any non-executives has resulted in the elimination of fraud, if not taken into account the environment for fraud The factors that influence fraud and prevention measures are the elements of fraud (see author's article elements of fraud)

The enabling environment for fraud could include: The outsourcing of processes, resignation by the employee of the holidays, conflicts of interests in the negotiation and administration, the high staff turnover, the increase in claims, increased delinquency rates, the administrative disorder in business processes, lack of authority, abuse of privileges, loss of control in the use of computer codes or passwords, lack of supporting documentation and authorization of business processes, weaknesses in controls basic internal processes are reflected in operations, the implementation of new processes without the proper training and clear guidelines for policies and procedures.

"The control costs relate to the value of assets is a fallacy that leads to losses that accrue in FY?.

Among the factors conducive to fraud: Lack of top management commitment, lack of basic controls of internal control and lack of culture of entrepreneurial risk mitigation while engaging the lack of trust and support that is provided to be to report acts of fraud, lack of civil and criminal penalties, lack of transparency in judicial processes, the lack of determination and will have influenced government that corruption actions immediately become more normal and daily occurrence detriment of the majority. (Citizens) as well as in private companies at the expense of shareholders.

Actions to prevent fraud: Creating enabling environment of trust for the reporting of fraud, preach by example at the highest levels of the organization, periodically review the background of staff, periodically review the status of life in relation to income earned , maintain a code of ethics applicable and socially conscious business awareness to their employees, customers, suppliers and community, Maintain positive work environment with fair recognition for the work to be performed, give clear and consistent rules to the business organization, protection for good faith reporting, and remind the organization that a customer is an investment well attended with return finds.

Contribution of C & C

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