2.4 Anti-bribery, corruption & ethics – current Canadian trends and issues
Ethics and Fraud Risks
One of the mandates of internal auditors may include responsibility for monitoring the effectiveness of internal control and risk management systems company-wide. This goes beyond the financial reporting process and encompasses the system of risk and control associated with other areas, such as operational matters and compliance with laws and regulations. These include operational and compliance risks posed by the extended organization such as partners, suppliers and vendors – these “third party” relationships can pose significant risks in light of complying with both national and global anti-bribery and anti-corruption laws and regulations.
According to the Association of Certified Fraud Examiners, Corruption is considered one of the three major types of occupational fraud. Occupational frauds are those in which an employee, manager, officer, or owner of an organization commits fraud to the detriment of that organization. However, the ethical impacts of corruption reach far beyond the detriment to an individual company or organization – Corruption impacts societies in a multitude of unethical ways including political, economic, social and environmental issues.
Hence, the presentation will tie into conversations by internal auditors on both of the chosen topics of fraud and of ethics