Board Chair Audit Case

or unwilling to take on the case. This could be due to the difficulty in prosecuting these types of cases, the limited resources available within the agency, the relatively small amount of money stolen (too low to devote resources), or any other number of reasons. If no criminal charges are filed, the organization may have to hire a lawyer to sue for the return of the stolen funds, which can be an expensive and time-consuming process.

Funds recovery

The board chair has a fiduciary responsibility to attempt to have the funds returned. Nevertheless, it is also important for the board chair to do its best to determine which of the following options make sense, given the facts and circumstances of the issue. Some of the common considerations may include: To examine whether the cost of seeking the

A good internal audit mechanism helps in detecting the frauds at an early stage so that the financial losses may be minimized. Operational audits can be taken up to review the effectiveness, efficiency, and economy of operation. It helps in identifying the risks faced by the organization and has an opportunity to improve controls. The external auditor should also try to obtain sufficient and appropriate audit evidence to be able to draw reasonable conclusions using which audit evidence is provided. Sudden checks have to be planned by the management to keep the staff alert and updated. The audit unit should be established separately, and proper vigilance and guidance are to be provided to them in order to check the frauds at an early stage. The staff, management and the executive officers of the organization have to work for the common good of all the stakeholders of the organization and should follow moral and ethical values while carrying on their