Fraud Prevention and Detection

The most effective way for school districts to combat fraud begins with strong anti-fraud systems and controls to both prevent as well as detect fraud. Management is responsible for implementing procedures for the prevention and detection of fraud and creating an environment that ensures honest and ethical behavior. Issuance of Statement of Auditing Standard (SAS) 99, Consideration of Fraud in Financial Statement Audits, changes the approach auditors will take toward the detection of material misstatement of financial information due to fraud. As a result, the systems and controls that school districts have in place will become a focal point for upcoming audits. The school district will need to demonstrate an understanding of fraud risk factors affecting their organization, as well as mitigating controls to address those risks. This page provides relevant information concerning fraud prevention and detection to assist school district management with implementing a fraud prevention program.

Guidance for District Management

Management Antifraud Programs and Controls - Guidance for Management provided by American Institute of Certified Public Accountants, Inc. Includes tips for creating an ethical work environment, identifying fraud risks, implementing controls, and developing an appropriate oversight function. Also includes a sample code of conduct.

For questions about this information, contact dpifin@dpi.wi.gov (608) 267-9114

Last updated on 2/25/2008 12:03:34 PM