The Richmond Times-Dispatch ran an article on common fraud schemes. The schemes detailed in the article can be found in companies of all shapes and sizes and are often perpetrated by long time employees. Several of our clients have encountered similar schemes over the years including fictitious vendors, loose cash handling controls and management override of controls to name a few.
The article is also relevant due to the recent guidance published by the Institute of Internal Auditors (IIA). The IIA’s publication on “Internal Auditing and Fraud” provides a clear outline of organizational responsibilities and internal processes to implement that will help you prevent and detect fraud occurrences.
Do you have methods to prevent and detect fraud in your organization? How would you handle a fraud if you suspected it was occurring? Would you be interested in performing a Fraud Risk Assessment to determine your organization’s fraud risks and associated controls?