Episode 42 - Anne C. DeTraglia: Part 1

In this episode, Anne shares what happened when she arrived at a major airline and inherited an audit function known for 30-page narrative reports and no formal fraud risk program. She made the case for a comprehensive fraud risk assessment and used DOJ guidance on effective compliance programs as the evaluative framework. What the assessment revealed was sobering: the compliance function was essentially a paper program.Weeks after the board approved a remediation plan, the CEO and several executives were walked out the door amid a DOJ bribery and corruption investigation. Because remediation work was already underway and documented, the DOJ gave the organization credit under federal sentencing guidelines, resulting in a non-prosecution agreement and reduced fines. Anne also walks through two additional case studies for vivid illustrations of how pressure and rationalization drive fraud from the inside.CHAPTERS01:00 — Inheriting a struggling audit function03:00 — Building a fraud risk register using DOJ compliance guidance06:30 — What a paper compliance program actually looks like09:00 — The scandal breaks11:00 — How proactive fraud work earned DOJ credit and reduced fines14:00 — Office supply theft and the immateriality of fraud17:30 — Government contractor caseABOUT ANNE C. DeTRAGLIAAnne DeTraglia is a recognized Internal Audit and Risk Management executive leader with thirty years’ experience building teams and capabilities across multiple disciplines, including fraud risk management, compliance, and enterprise risk management at Fortune 100 companies including The Home Depot, Sears Holdings, Nike, United Airlines, and Samsung. In her most recent role, she was the Vice President and Chief Audit Executive at Sabre Corporation, a multinational travel and technology company.Anne is a graduate of Illinois State University. She holds an undergraduate degree in Spanish Linguistics and Literature. She earned her MBA from The American Graduate School of International Management and is proud to be a Certified Internal Auditor and Fraud Examiner. In her spare time, she enjoys spending time with her family, traveling the world and eating good food.