Fraud is unavoidable and for those in business, it is an operational hazard. Businesses are usually the victims of fraud and suffer the cost of

1. The fraud,
2. The cost of investigating the fraud, and
3. The cost to ensure it does not reoccur.

An effective prevention and detection strategy should be implemented and should include the need to:

1. Minimise factors that motive employees to commit fraud
2. Understand and reduce the opportunities for fraud in the business
3. Understand why fraud is committed
4. Highlight the high risk areas within the business

7 common strategies for fraud prevention:

1. Know the symptoms of fraud
2. Know your employees
3. Communicate reporting system to employees
4. Respond to identified problems
5. Implement and assess internal controls
6. Monitor employee holiday leave
7. Hire experts

We all read about the big business frauds in the headlines but we need to watch for the smaller frauds that chip away at the financial health and integrity of a company of any size.

What questions do you have?

We are happy to help. Please post your comment below or call Lisa Byrne, Audit Manager at Cooney Carey, on 01 677 9000. Alternatively, send her an email: lbyrne@cooneycarey.ie 

If this article helped you, please share it with other businesses.