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Posts Categorized: Forensic Accounting

The Best Anti-Fraud Controls in Fraud Deterrence Programs

The single most common anti-fraud control companies use as a fraud deterrence vehicle is the formal financial audit.  Unfortunately, it’s not a very effective one. In its 2014 Report to the Nations, the Association of Certified Fraud Examiners (ACFE) reported that out of 18 identified anti-fraud controls, the formal financial audit scored 16th in reducing… Read more »

Take a Vacation for Successful Fraud Deterrence

Fraud deterrence programs never take a vacation, but your employees most definitely should. Requiring employees to take regular vacations is a key anti-fraud control in an organization’s comprehensive fraud deterrence program.  In its 2014 Report to the Nations, the Association of Certified Fraud Examiners (ACFE) notes that a mandatory vacation policy reduces an organization’s median… Read more »

Eliminating Opportunity Is Crucial to Fraud Deterrence

Opportunity — the ability for fraudsters to carry out the misappropriation of cash or other company assets — is one of the three key elements necessary for fraud to occur and it is an element that organizations often can eliminate by enacting strong anti-fraud controls as part of a comprehensive fraud deterrence program. In its… Read more »

Fraud Investigation Reveals Fraud Schemes

Fraud investigations into asset misappropriation — one of the three main types of fraud — reveal an assortment of deceitful means by which dishonest employees can steal from an organization. “There is no shortage of schemes by which a fraudster can misappropriate funds from an employer, whether it is a company, a non-profit or a… Read more »

Fraud Investigation Identifies Three Types of Fraud

Fraud investigations worldwide reveal that asset misappropriation, corruption and financial statement fraud are the three main types of fraud, according to the Association of Certified Fraud Examiners (ACFE). The ACFE identified these three key types of fraud in its 2014 Report to the Nations, the results of a global survey conducted biennially to study the… Read more »

Why You Can’t Afford Not to Invest in Fraud Deterrence

Think a fraud deterrence program is too pricey?  Consider this.  In its biennial global survey, the Association of Certified Fraud Examiners (ACFE) found that the typical organization loses five percent of its revenues to fraudulent activities each year. That conclusion was a key finding in the ACFE’s 2014 Report to the Nations, the results of… Read more »

Understanding “The Fraud Triangle” Can Aid in Fraud Deterrence

Fraud deterrence is undoubtedly a complex issue.  But there is one seemingly simple approach that can help you keep fraud out of your business or organization:  Understanding “The Fraud Triangle” and using it to your advantage. “‘The Fraud Triangle’ is what forensic accountants talk about when they refer to the three elements that are necessary… Read more »

Financial Statements Can Be Invaluable in Fraud Deterrence

Financial statements issued by companies, government entities or organizations can be invaluable tools in fraud deterrence.  But too often, the people in charge don’t bother to read these statements on a regular basis, and those who do often don’t understand what they are reading. Understanding your financial statements, and knowing what to look for, are… Read more »

A Disaster Recovery Plan Can Help your Business Survive a Disaster

Disasters are in the news every day.  Tornadoes.  Hurricanes.  Sinkholes.  Floods.  Fires.  As a matter of practice, you’ve probably insured your home, your business, your health and your very life in the event disaster strikes.  But what do you actually do when the immediate threat has passed?  Do you have a disaster recovery plan in… Read more »

Fraud Deterrence Starts with You

As a reasonable and intelligent business owner who employs reasonable and intelligent employees, you might think fraud deterrence programs are unnecessary.  It’s a given that everyone knows they’re not supposed to steal from their employer, right? And they also understand that as the boss, you get certain perks to which they are not entitled.  It’s… Read more »

Fraud Investigations Reveal Trusted Employees Often at Fault

It’s in the headlines nearly every day — stories about fraud investigations that reveal the theft of hundreds of thousands and even millions of dollars from local businesses, government agencies and charitable organizations. And who’s to blame? Too often the culprit is a long-time trusted employee. “The person responsible for defrauding the company frequently is… Read more »