Government Sector – The Case of McKinsey and Company

The United States Federal Government had to create the interagency Financial Fraud Enforcement Task Force to detect, investigate and prosecute financial crimes following the recent insider trading scandals in the financial sector. Corporations have had to take corrective action to deter fraud to be in compliance with new legislation, and commit to corporate social responsibility. McKinsey and Company had its corporate chief director charged with insider trading. Several organizations of internal auditors suggest ways to detect fraud including insider trading which should stop and prevent the spread fraud.