Corporate Directors are asked to be ready for requests for internal fraud investigations in a recent report issued by the Conference Board of Governance Center, a non-profit organization that has spent 90 years disseminating information to assist management officials run a company better.
The report comes at a time when government investigations of corporate finance are increasing. The Governance Board says also that the numbers are expected to continue rising.
"Along with their advisory functions at a time where corporate strategies are being reconsidered, directors fulfill a crucial role in overseeing that the organization continues to meet the highest ethical and compliance standards," Matteo Tonello said in a press release. Tonello is associate director of the Conference Board of Governance Center.
Urging proactive action, the report stresses the importance for company boards to demonstrate thoroughness in uncovering facts and information that would be deemed important by regulators and auditors.
"If the board suspects misconduct has occurred or the government has informed the company that it may be the target of an investigation, the board faces tremendous pressure in the current environment to launch its own internal investigation," said Robin M. Bergon, the author of the report.
For more information about conducting internal investigations in the most appropriate manner, visit the company’s website: