NCJ Number
72286
Journal
GOVERNMENT ACCOUNTANTS JOURNAL Volume: 29 Issue: 2 Dated: (Summer 1980) Pages: 1-6
Date Published
1980
Length
6 pages
Annotation
To prevent and detect fraud and abuse in the Government, top management must serve as an example of high ethical standards and make sure that its auditors concentrate on internal controls.
Abstract
In view of the many cases of fraud and abuse in the Federal Government agencies, steps hae been taken to improve internal controls. Specifically, the Offices of Inspector General have been established in 14 major departments and agencies (the General Accounting Office's Government-wide study of the causes of fraud and abuse). However, a review of internal controls over cash and receivables at 144 fiscal offices of 10 Federal agencies revealed that managers frequently do not require employees to follow the controls even when they do exist. The result is not only loss of money, but human resources as well, when individuals who are not hardened criminals are too weak to resist the temptation to violate the system. Therefore, management must instill in all of its employees an awareness of the need to adhere to good internal controls, serve as an example of high ethical standards, and make sure that its auditors concentrate on internal controls. The total audit effort should be balanced between evaluations of agency programs and evaluations of internal controls. Examples of fraud and abuse, and the Government controls are provided.