Association of Independent Private Sector Inspectors General — IAIPSIG
— is a nonprofit professional association whose mission is to
and promote integrity, honesty, impartiality
and professionalism in the work of IPSIGs, monitors and
IPSIGs function to monitor an organization's compliance with relevant
laws and regulations and to prevent, uncover and report illegal
acts within and
a monitored organization. IPSIGs also function to help the organization enhance
corporate efficiencies, raise and maintain ethical standards and promote
cultural change. The catchphrase of IAIPSIG is: “Good ethics are good business.”
Founded in 1994 by a group of distinguished current and former
prosecutors and law enforcement officials, IAIPSIG consists primarily
of law firms, investigative
firms and forensic accounting firms that provide IPSIG and IPSIG-type services
in compliance with the IAIPSIG Code of Ethics. IAIPSIG is a forum
for the exchange of ideas by its members as well as a
means of providing
public with information about the IPSIG concept and the work of IPSIGs, integrity monitors and independent
There is a growing demand for the type of services IPSIGs offer.
Government agencies in New York City and beyond operate
programs that use IPSIG and IPSIG-type monitoring methods. If integrity
about a contractor, that contractor — as a condition of the contract
— may be required to hire a private watchdog to ensure that the contractor
its business in compliance with the law and that anti-fraud procedures are
in place. Federal agencies now routinely require companies to hire independent
oversight as a condition of settling fraud charges. Courts require companies
to hire monitors as part of a deferred prosecution agreement. Some companies
also continue using the IPSIG firm's services voluntarily.
As one company
put it: "It
gives us a marketing advantage, and a tool that protects our private clients
Corporations are increasingly turning to independent investigators and monitors
to help ensure integrity in the operations of the company and its subsidiaries.
Labor unions hire independent monitors to monitor their leaders and membership.
Federal corporate sentencing guidelines and the self-reporting programs of
various federal government departments reward companies that police themselves
and punish those that do not. The consequences of a fraud and corruption scandal
are dire. There is a real incentive for companies to monitor themselves for
wrongdoing and to correct and report it before a scandal breaks that could
threaten the very existence of the company.
IAIPSIG believes that adherence to the values of integrity, honesty, impartiality
and professionalism are fundamental to the effectiveness and credibility, and
hence the prosperity, of the IPSIG profession. IAIPSIG members believe that
the IPSIG profession will stand on its dedication to ethical principles and
standards of conduct.
IAIPSIG members strive to be focused and objective in their fact gathering,
fact finding, analysis, and reporting activities on behalf of monitored organizations.
IAIPSIG members must be guided by a singular dedication to the assignment,
untainted by self-interest, outside interests or conflicts of interest. (Examples
of conflict situations are set forth in the IAIPSIG Code of Ethics.)
It is unethical for an IAIPSIG member to undertake an assignment with less
than complete diligence. Doing a less than thorough job in order to provide,
or acquire a reputation for providing, host organizations with a clean bill
of health is antithetical to the goals of IAIPSIG, since the organization
can hold itself out as having oversight that in fact is ineffective. IAIPSIG,
its Code of Ethics, strives to prevent implicit or actual bargains between
IPSIGs and monitored entities that would undermine the credibility of the
Are investigators who are assigned to detect and prevent corporate fraud
actually doing fact-finding missions or are they doing damage control for
that are paying their fees? IAIPSIG Members strive to assure that “independent” monitoring
and investigations are truly independent. One of the chief goals of IAIPSIG
is to put to rest any concerns about objectivity.
IPSIGs are authorized to independently report any unethical and illegal conduct
they uncover to a higher authority such as a Board of Directors, government
agency or court, without the specific pre-approval of the monitored organization.
This autonomy helps guarantee the integrity of monitoring and the independence
of investigations, since the IPSIG cannot be “captured” by the
organization and used by it as a façade of legitimacy.
The IPSIG brings to bear on organizational issues its unique expertise, which
combines legal, investigative, auditing, loss prevention and management skills
in a complementary and mutually supportive interrelationship.
A member of the IAIPSIG need not possess all those skills but must have at
least one of those skills, regularly practice in that profession, and demonstrate
by experience and/or training the ability to participate with other professionals
in an IPSIG team.