Achilles' heel: management override of internal controls a weak link in fraud prevention.
ControlCo.'s audit committee chair was stunned when the company's counsel informed him that the prior year's revenue and earnings may have been overstated."How could that happen?," the audit committee chair asks. "We have good internal controls and management, and the auditors both signed off that they were effective." And that's when it became apparent: those who design and implement internal controls--manageme...