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Guidelines needed for handling whistleblower complaints.

Publication: San Fernando Valley Business Journal
Publication Date: 23-OCT-06 		Format: Online
Delivery: Immediate Online Access
Full Article Title: Guidelines needed for handling whistleblower complaints.(Guest Column)

Article Excerpt
Following the corporate scandals of the last five years, there has been renewed attention to the issue of fraud. Both public and private companies recognize that fraud can undermine, or even destroy trust in their business, often with catastrophic financial results.

According to a 2006 report by the Association of Certified Fraud Examiners, anonymous tips are the most effective means of detecting fraud. Since the Sarbanes-Oxley (SOX) Act was passed in 2002, audit committees of public companies are required to establish procedures for gathering and processing complaint information, and they must guarantee confidentiality and protection to employee whistleblowers. Because smaller, often private, companies suffer from a higher incidence of fraud than larger companies, many of them have adopted similar policies, either using audit committees...

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