Design of Prevention and Detection Controls

After conducting a fraud risk assessment, UHY Advisors' professionals work with management to analyze any existing controls that may have been established to mitigate fraud risk. In many cases theses existing internal controls were designed for a different purpose such as Sarbanes-Oxley compliance. The control design of each control needs to be carefully assessed to ensure it has been designed to properly prevent or detect the occurrence of fraud. During this process each risk that management is unwilling to accept, is mapped to a specific fraud prevention or fraud detection control and gaps are identified for unremediated risks. The design of each control is then analyzed to assess design effectiveness frequently resulting in enhancements to fraud controls and improvements to business processes.

Although controls can never guarantee with absolute certainty that fraud will not occur, properly designed internal controls that operate effectively can help mitigate the effects of fraud and demonstrate to regulators, shareholders, and stakeholders that management is taking the proactive steps necessary to manage risk in an ever more complex global economy.