When it comes to internal controls at non-profit organizations, there's a "fraud triangle"and it's a pretty big one, according to a new report from the Center for Nonprofit Integrity.
The three most common types of internal controls that nonprofit directors should be aware of are "red flags that indicate the possibility of fraud," according to the report, which was released by the Center for Nonprofit Integrity in partnership with the American Institute of Certified Public Accountants.
The three tips for preventing fraud in an organization's internal controls: Have a written policy that clearly states who's responsible for the organization's financial controls and who's in charge of those controls Check the box next to the name of the person in charge of the controls on the organization's website Check the box next to the name of the person in charge of the controls on the organization's PayPal page Check the box next to the name of the person in charge of the organization's bank account Check the box next to the name of the person in charge of the organization's accountant Check the box next to the name of the person in charge of the organization's human resources Check the box next to the name of the person in charge of the organization's payroll Check the
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