The American Institute of Certified Public Accountants’ Auditing Standards Board issued Statement of Auditing Standard, No. 99 (SAS #99): CONSIDERATION OF FRAUD IN A FINANCIAL STATEMENT AUDIT in October 2002 and it became effective for audits of financial statements for periods beginning on or after December 15, 2002.
The HCDE Fraud Prevention Model and Awareness Program supports SAS #99 by communicating to management and others an awareness and understanding of fraud, and educating management about fraud and the types of controls that will deter and detect fraud. The Business Services division alone cannot prevent and/or detect all the types of fraud that may be perpetrated within HCDE. It takes all HCDE employees being aware and knowledgeable that fraud could occur to possibly prevent fraud from occurring or even detecting a fraud that has occurred.
All HCDE personnel, especially management personnel, have the responsibility to:
This program is a great way to bring awareness to management personnel of their responsibilities in this area. This program is also one of the ways the independent auditors have to evaluate HCDE internal controls.
Tab 1. Introduction
Tab 2. HCDE Internal Control Structure: A Primer for Safeguarding Assets and Preventing Fraud