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Risk is inherent in every business. CPAs have a large role to play in strengthening a company's internal controls over financial reporting and ensuring compliance with applicable rules and regulations. As Anthony Chan notes, many companies are going beyond mere compliance to build enterprise risk management programs that can not only detect fraud and prevent control failures but also improve operational effectiveness. He stresses the importance of setting the right tone at the top and having the right people in place to implement a well-designed program.
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