One of the new ways in which audit committees can help improve the overall control environment is by brainstorming fraud risks. A brainstorming session can be very useful in determining the various ways in which fraud can have an adverse effect on the entity. How fraud can be perpetrated, how controls can be overridden and how fraudulent financial reporting can occur are some of the things that can be discussed in the brainstorming session.

Risks identified during the brainstorming session can be then communicated to the internal audit as input. The internal audit department can incorporate such risks in the annual audit plan. Another effective way to tackle fraud is by appointing an anti-fraud specialist on the audit committee. Audit committees can also use the help of fraud specialists like CFEs certified fraud examiners who have diverse and deep knowledge of fraud. The war on fraud is a continous one. It is important for audit committees to use new approaches to handle fraud. Brainstorming sessions as described above might just what your company's audit committee needs.

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