Page 608 - ACFE Fraud Reports 2009_2020

We also analyzed these FIG. 23 How do internal control weaknesses vary by scheme type?
control weaknesses based
on the category of fraud Lack of internal controls
involved in the scheme (see 32%
25%
Figure 23). Not surprisingly, 29%
a poor tone at the top was
much more likely to be the Lack of management review
primary factor in financial 19%
15%
statement fraud and cor- 15%
ruption cases than in asset
misappropriation cases. Override of existing internal controls
However, it is interesting to 18%
note that a lack of internal 21%
14%
controls is more common in
asset misappropriation and Poor tone at the top
9%
financial statement frauds, 18%
while corruption schemes 23%
are more likely than other
schemes to involve an Lack of competent personnel in oversight roles
override of existing con- 8%
6%
trols. In addition, a lack 5%
of management review is
more commonly the reason Other
for asset misappropriation 5%
schemes than other forms 7%
8%
of fraud.
Lack of independent checks/audits
4%
3%
5%

Lack of employee fraud education
2%
3%
<1%
Lack of clear lines of authority
2%
2%
0%

Lack of reporting mechanism
<1%
1%
1%

Asset misappropriation Corruption Financial statement fraud

32 Victim Organizations Report to the Nations