AICPA continues attack on fraud. (Highlights).

As part of an ongoing campaign, the Institute--in concert with the Association of Certified Fraud Examiners (ACFE)--released a free PC-based training program, "How Fraud Hurts You and Your Organization," that helps CPAs and the business community provide fraud-prevention training to clients and employees at all levels.

AICPA President and CEO Barry C. Melancon said the purpose is to raise awareness of fraud within the accounting profession and corporate America. "We must understand the human element--why people commit fraud and what factors and opportunities influence them," he said. "This kind of knowledge is the first line of defense in developing and deploying effective antifraud programs and controls within every business in America."

The one-hour training program shows both how trusted employees can be tempted to commit fraud and what employees can do to protect themselves and their organization from fraudulent activity. The course explains the three elements of the "fraud triangle" that must be present for an individual to commit fraud: financial need or desire, the ability to attribute one's criminal acts to ethical motives and the perception that it is possible to avoid detection. It also provides actual case studies of major frauds and their perpetrators, including the CFO of a chain of retail electronics stores, a corporate accounting manager and a bank teller, each of whom significantly damaged their organizations before their scams came to light. As the training program explains, the victimized companies' failure to recognize the warning signs of fraud made it easier to steal from them.

The training program is the latest effort in the AICPA's antifraud and corporate responsibility program, which Melancon announced in a September 4 speech at the Yale Club in New York. In support of this, the Institute developed an online resource center (www.aicpa.org/antifraud) that provides the tools and information organizations and individuals need to combat fraud--regardless of their role in the business community. Other segments of the center provide practical guidance on preventing, detecting and investigating fraud, including details on the mechanics of complex fraud schemes.

Additional achievements in the antifraud campaign include Management Antifraud Programs and Controls (see Highlights, JofA, Jan.03, page 8, and www.aicpa.org/antifraud/management), a document containing antifraud best practices the Institute and six other professional associations designed for boards of directors, audit committees and corporate managers; SAS no. 99, Consideration of Fraud in a Financial Statement Audit (see Official Releases, JofA, Jan.03, page 105); and the Institute for Fraud Studies, which the AICPA is developing with the ACFE and the University of Texas at Austin (see Highlights, JofA, Nov. 02, page 8, or www.aicpa.org/pubs/jofa/nov2002/about.htm).

This group also plans to sponsor a "fraud summit" that will bring together corporate leaders and other members of the business and investor communities to collaborate on developing new ways to fight fraud.

The new training program is available at no charge from the AICPA. It can be downloaded at www.aicpa.org/antifraud/training/homepage.htm or ordered in a CD version by calling 888-777-7077 (product code 056513JA; an $8 shipping-and-handling fee applies).