Surprise audits are one of the least-used forms of anti-fraud controls, but one of the most effective, according to a 2014 Report to the Nations on Occupational Fraud and Abuse by the Association of Certified Fraud Examiners (ACFE).
Only 29 percent of American companies who were victims of fraud in the ACFE study used surprise audits as a method of detection. Read More
Segregating duties to prevent fraud and reduce weak controls is not always easy, especially when you have a small accounting department. However, there are some simple internal controls that are often over looked that you can put in place to eliminate some risk.
Think fraud cannot occur in your organization? Think again. No organization is immune to fraud. All organizations are susceptible to fraud whether they realize it or not. Did you know that small businesses are the organizations most susceptible to fraud? Much of this exposure comes from the “it couldn’t happen here” mindset and a lack of awareness of fraud risks and detection measures. Proactive fraud prevention and detection measures are vital in managing fraud risks. Anti-fraud controls are associated with reduced fraud losses and shorter fraud duration.