Fraud Prevention: 10 Simple Steps

Unethical business behaviour directly or indirectly accounts for major losses – between 2% and 5% turnover, and severely damages the reputation and morale of companies. It is one of the largest unmanaged risks in companies today.

Here are 10 simple steps that every business owner should implement to prevent fraud:

  1. Perform background checks on employees.
  2. Create an environment where honesty is practiced and employees are encouraged to be on the alert for fraud.
  3. Company owners should always receive bank statements directly from the bank.
  4. Maintain current and accurate accounting records.
  5. Have the company’s accountant perform periodic reviews of internal controls and perform interim reviews of the financial statements.
  6. Insist that employees take time off, and cross train employees so that they can review each other’s work.
  7. Physically secure the business premises and assets and restrict access times.
  8. Perform periodic inventories.
  9. Review computer security for proper administrative and access rights.
  10. Create a written fraud policy, as suggested by the Association of Fraud Examiners.

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 

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