|FINANCIAL REPORTING FRAUD AND AUDIT COMMITTEES
Fraud in financial reporting is not a new phenomenon. Neither is a rising incidence of financial reporting fraud an unusual outcome in period of economic distress. What is somewhat surprising is that both the incidence and the severity of financial reporting fraud continues to increase in the face of efforts by the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), and other governmental and professional organizations to minimize the frequency and severity of such fraud (Anthony, Harrison, Linehan, & Palker, 1999).
Financial reporting fraud continues to surface in the face of important regulations and procedures implemented to minimize the freque