PREVENTIVE LAW AND MANAGERIAL AUDITING

Corporations which flout the law may themselves fall victim to corporate crime. Prevention is more cost‐effective than cure, and many companies are now drawing on their managerial auditors to devise preventive law programmes. Self‐regulatory companies have the most successful record, and the five major characteristics of these are examined in detail. Examples of corporate disasters are provided to illustrate the risks of ignoring the message of this article.