​The Alternate Reality of REM

In times of the COVID-19 pandemic, the risk of workplace fraud has increased significantly in many companies and industries. For example, lost revenue has caused companies to reduce their operating expenses. The risk of accounting fraud is increasing.

One type of accounting fraud is real earnings management (REM). In this process, managers intentionally create an alternate reality of what is going on in the company’s accounting. By evaluating and monitoring operational decisions to ensure financial reliability and effective risk management, internal auditors can help detect or prevent fraudulent REM.

A new article from the Internal Auditor addresses REM. For example, it outlines ways companies can conduct REM and how internal audit can detect fraudulent REM.

Your interest has been piqued? You can read the article here.


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