Book Offers Advice on Subverting Fraud and Creating Strong Accounting Controls

NEW BOOKS

Internal Controls: Guidance for Private, Government, and Nonprofit Entities
by Lynford Graham

Instances of fraud and poor accounting standards among charities can cause the entire nonprofit world to suffer a decline in public trust and support, writes Lynford Graham, an accountant and consultant.

He adds that clear internal controls, such as keeping track of bank deposits or of work completed by outside consultants, are the best protection nonprofit groups have against such scandals, and creating controls do not have to be costly.

Mr. Graham offers advice to help both charitable and business entities create, test, and evaluate internal controls at a reasonable cost. The book also outlines different types of fraud, and discusses how to create an audit committee, work with independent auditors, and pinpoint weaknesses in financial accounting.

“The point here is not to create a fraud-phobic reaction, but to increase the awareness of fraud risk and abuse to motivate better controls design and monitoring,” the author writes. “If you care about the organization you have built or work for, and care for its future, you need to take steps to ensure it is protected against this sort of nonsense.”

Publisher: John Wiley & Sons, 111 River Street, Fourth Floor, Hoboken, N.J. 07030; (201) 748-6000; fax (201) 748-6088; http://www.wiley.com; 244 pages; $85; ISBN 978-0-470-08948-4.