Deterring and detecting financial reporting fraud

Everyone involved in the financial reporting process has a role to play in financial statement fraud deterrence and detection, and more communication among the various stakeholders is needed, says Cindy Fornelli, executive director of the Center for Audit Quality, a Washington-based public policy organization. The CAQ has been holding roundtables on financial reporting fraud deterrence and detection and is preparing a report about best practices. Earlier this year, Fornelli wrote about why she's against exemptions from financial reporting audits for small businesses in "Two steps back" in The Deal magazine. - Mary Kathleen Flynn