Reference no: EM133239497

From the 2020 Report to the Nations, it is stated, that, the perpetrator's level of authority within an organization tends to strongly correlate with the size of a fraud. Owners/executives accounted for only 20% of the frauds, but the median loss in those cases (USD 600,000) far exceeded the losses caused by managers and staff-level employees. This is because owners/executives are generally in a better position to override controls than their lower-level counterparts, and they often have greater access to an organization's assets. Both of these facts might help explain why losses attributable to this group tend to be so much larger.

The report also states, that the longer a fraud perpetrator works for a company, the more damage that person's scheme is likely to cause. Those who had been with the victim organization for at least ten years stole a median USD 200,000, which was four times greater than the median loss caused by employees with less than one year of tenure.

Share your thoughts on how the perpetrator's position and tenure may impact the responsibilities of an auditor.