Financial accounting fraud in the capital markets represents a threat to the public interest. The 2020 Report to the Nations from the Association of Certified Fraud Examiners estimates that global losses related to fraud exceed $4.5 trillion each year. This report also highlights the key role that whistleblowers play in uncovering and reporting fraud. However, some of those that wish to speak up may not do so, because they fear retaliation.
Employers may fire or be reluctant to hire “troublemakers,” and colleagues or shun them entirely. For that reason, organizational positioning of the internal audit function—and their being independent and objective—give internal auditors an indispensable triage role in whistleblowing arrangements.
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