22 Feb

A Correlation Between Gambling and Fraud?

Employee fraud always has a “cause.” The “cause” is the motive, desire, or need that is being filled by the theft from one’s employer. A need doesn’t have to be a true need in order for fraud to occur, but can be a perceived need on the part of the thief. One common impetus for fraud is an addiction. Addictions are expensive, and the money has to come from somewhere. The employer is sometimes the logical answer to the problem.

But addictions aren’t limited to drugs, alcohol, and similar vices. They can and do include gambling, and the news is full of incidents of fraud with a gambling connection. A known addiction can be a red flag of fraud, meaning that the addicted employee is statistically more likely to commit fraud and therefore usually merits further monitoring.

Defining Gambling Addiction
People didn’t talk much about gambling addictions in the old days. They may not have even realized it existed. But just like a chemical addiction such as alcohol or drugs, it has now been found that gambling can cause changes in the brain that can become addictive. Read More

02 Feb

Bring Out the Big Guns?

When companies have big problems, they usually bring out the big guns. The benefits of using large law firms, audit firms, and other professional service firms are undeniable. These firms offer a depth of experience that is invaluable, and they have seemingly unlimited resources in terms of manpower. A large firm often has the ability to mobilize an engagement team quickly, and can bring in experts from around the world.

Does bigger mean better? Certainly the perception exists that larger firms provide better services. No one can fault an executive who chooses a big firm when trouble is brewing. There is an undeniable comfort level that comes with the big firms because they have established reputations and many resources. Even if the project goes poorly, no one can fault the executive who chose the large firm. Read More