After a company has experienced internal fraud and has investigated the situation, how do they address the issue of fraud prevention? Moving forward after an internal fraud requires that management actually make good on promises to prevent future frauds. It […]

A secret romance between a bankruptcy judge and an attorney has turned into a very expensive problem for one of Texas’s largest law firms. We’re talking a $15 million settlement and 33 known cases that are now problematic. Former Houston […]

The notes to financial statements are often lengthy and boring. But they can provide very important information about a company.  On the most basic level, they provide details behind the company’s numbers. But they can also provide clues to fraud […]

By far the most common way that executives manipulate financial statements is through the overstatement of revenue. The reason is simple: It’s the easiest way to improve the appearance of the company’s financial condition. Revenue can be inflated by doing […]

Education is a highly effective fraud prevention technique for companies. Studies have shown that companies with anti-fraud educational programs in place can cut their fraud losses in half. By educating employees, management is giving them the tools to help look […]

Behavioral red flags of fraud are the signs that someone might be involved in a fraud at work. Some of the most common red flags are living a lifestyle that exceeds a person’s earnings and unusual attitudes on the job […]

Fraud is big business. Companies are most at risk of fraud from their employees, since they have access to information and assets. On average, companies lose 5% to 6% of their revenues to internal fraud. This means that a company […]

When a whistleblower goes to a government agency to report allegations of fraud and corruption within a company, no one knows whether the government will act. The more detailed and credible the allegations, the more likely the government will ask […]

Fire drill training in grade school always included the mantra, “Stop, drop and roll.” This was the prescribed course of action if a child was on fire. Professionals sometimes refer to tragedies in companies as fire drills. When a major […]

According to the Association of Certified Fraud Examiners, the overwhelming majority of frauds against organizations are committed by insiders.Yet, it would be a mistake to assume that most employees who steal are experienced criminals. In fact, many, if not most, […]