Following up our last biweekly newsletter on the roles of the board of directors, we will be focusing this newsletter on fraud prevention. Fraud is defined, by Investopedia, as “an intentionally deceptive action designed to provide the perpetrator with an unlawful gain, or to deny a right to a victim.” When a firm has poor internal controls, fraud can become rampant.
Below are multiple articles related to fraud prevention:
-All business owners may want to take specific measures to improve their internal controls in order to protect their firm from fraud. KPMG conducted a fraud survey and a government agency released an article about internal control practices that are helpful for preventing fraud, titled “Top Ten Internal Controls to Prevent And Detect Fraud!.”
-The risks of fraud are often underestimated by clients of consulting and accounting firms. Xero published an article, titled “Fraud Prevention Tips for Your Small Business Clients.”
-Many employers assume that, with increasing technological advances in the security sector, petty fraud (e.g. fake checks, phone scams, etc…) are becoming an issue of the past. In Frank Sorrentino’s article, “The More Technology Changes, The More Fraud Stays The Same,” he explains how these old-fashioned forms of fraud are still prevalent.
By Peyton Wille, CFO Consulting Partners