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Fraud case highlights need for audit committees, diligence
Publication year - 2021
Publication title -
board and administrator for administrators only
Language(s) - English
Resource type - Journals
eISSN - 1949-3215
pISSN - 1525-7878
DOI - 10.1002/ban.31237
Subject(s) - embezzlement , due diligence , business , diligence , audit committee , audit , accounting , chief audit executive , internal audit , public relations , joint audit , political science , law , finance , criminal law , psychology , social psychology
While most larger nonprofits have audit committees in place that provide oversight of the organization's finances—making financial fraud more difficult to pull off unnoticed—many smaller organizations don't. Instead, these groups typically just depend on the treasurer to keep tabs on finances and report out to the rest of the board and executive leadership where things stand. Experts have long cautioned against having that much responsibility under one role, with no other oversight, and with good reason: it makes the organization much more vulnerable to theft and embezzlement.