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, […]
Where can employees, outside consultants, and board members look for evidence of override of internal controls? This isn’t a simple list of numbers or documents that must be checked off. Instead, looking for improper override of controls requires looking for […]
If you haven’t heard by now, internal fraud is expensive, costing companies an average of 5% of revenues each year. Employees are in an excellent position to steal the company blind. Particularly for those in upper management, access to assets […]
