Understanding the methods of how occupational fraud is detected will help you establish and implement internal controls as well as help you during a fraud investigation.
This information will also assist you with how you can help others take the steps necessary to minimize the risk and be more proactive in the approach to protect businesses from this crime.
The three primary methods in which fraud can be detected are:
The statistics show that tips compile 40 percent of the most popular methods of detection, internal audit comes in at 15 percent and management review is 13 percent. The remaining 32 percent of the methods of detection include:
Account reconciliation (not just bank accounts, of course)
and a few others.
Let’s Talk About Tips
Here, we are talking about someone telling someone else about a fraud they have witnessed.
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Dawn is a Certified Public Accountant, Certified Fraud Examiner, and CEO of Powerful Accounting, LLC. Powerful Accounting is a nationally recognized accounting, tax, forensic and fraud, IRS and State Agency audit professionals as well as a QuickBooks consulting firm. Recently, Powerful Accounting has partnered with Anderson, Brolin & Coba...