02/11/2016

02/11/2016

What You Must Know About Fraud In A Small Business

fraud Small businesses are the victim of fraud every day - now you found the fraudster - what action do you take. Firstly, Take advise from your accountants and legal team as if the fraud involves an employee and the situation isn’t handled properly, the company could get itself into a lot of trouble and expense. Secondly, Weigh up the costs and benefits to prosecute or not. Insurance companies may require prosecution to pay out and it would set a standard for other potential fraudsters. However, you must consider if the prosecution would give the company bad press, the likelihood the fraudster may be found not guilty, cost to the company in compensation and the company insurance costs could go up. Thirdly, Turn the situation around and take this opportunity to review the company internal controls policies:
  • Are company policies adequate?
  • Have policies been kept up to date with technology, law and the business?
  • Are internal controls being implemented properly?
  • Are internal controls being reviewed regularly?
Changing your approach towards internal controls in your business can make your business grow and discourage the fraudsters! References: Se blog Mar 2016 - Assessing and strengthening internal controls

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.