SEC rules state that a company can be held liable of confirmation fraud if an employee responds falsely to a confirmation request. While paper confirmations make it difficult to control which employees can respond to audit confirmation requests, new guidance from the standards-setting boards supporting the use of secure electronic confirmations now give companies a better way to control confirmation responses.
NASHVILLE, TN – May 06, 2010 – Brian Fox of Capital Confirmation, Inc. will present how confirmation fraud takes place during an audit and what accounts payable and accounts receivable professionals can do to prevent it at their organization at the International Accounts Payable Professionals (IAPP) Annual Forum and Expo. The Forum takes place May 9 – 13, 2010 at the Gaylord Texan Resort and Convention Center in Grapevine, Texas.
"Fraudsters have been known to coerce or use undue influence with their suppliers, vendors and even customers to confirm false information during an audit," said Brian Fox, founder and chief marketing officer of Capital Confirmation, Inc. "More importantly, many companies don't even realize that their current confirmation response process makes them vulnerable to these deceiving tactics and puts them at risk of being associated with financial fraud. Fortunately, establishing policies and procedures to monitor and control audit confirmation responses, and utilizing tools to ensure employees adhere to these policies, can go a long way in helping companies prevent it from taking place."
During Brian’s presentation on Audit Confirmation Fraud – What You Must Know, he will share what SEC rule 13b2-2 means to a company, how paper confirmation requests increase a company’s exposure to confirmation fraud, explain the new and proposed guidance from the standards-setting organizations, and how to keep from getting entangled in confirmation fraud.