- Watch for changes in your employee’s lifestyle, especially his/her spending habits.
- Employee attendance problems.
- Unusual billing addresses or payment arrangements.
- Excessive department or individual expenses or purchases.
- Frequent complaints from your suppliers or customers.
- Low employee morale.
- Missing documents/ files or documents with numerous alterations.
- Excessive overtime.
- Discrepancies in inventories or cash overages/ shortages.
- Close relationships between employees and vendors or customers.
- Understaffed accounting or auditing departments.
- Constant overriding of internal controls.
- Inadequate internal controls or policies.
- One person controlling both sales and receipts.
- Ignored employee complaints, suggestions, or comments.
- Large numbers of adjusting journal entries, especially at period end dates.
- Managers unfamiliar with warning signs.
- Managers overly trust employees.
- Management ignoring own controls and enforcement procedures.
- Indispensable personnel who arrive early and work late.
- Management unfamiliar with the actual fraud losses.
What you should do to prevent fraud?
- Conduct quality background checks on your potential employees.
- Know what your losses are and develop a tracking system to identify when and how they occur.
- MINIMIZE security overrides.
- Develop tight security controls.
- Conduct noticeable random spot-checks for security purposes.
- Conduct an external security check of your entire system, including security personnel.
- Hire higher quality security personnel and pay them for their quality.
- Train supervisors in fraud prevention.
- Reduce the opportunities for impulse crimes.
- Develop an employee hotline to report safety and fraud conditions.
- Investigate high risk areas.
- Vigorously investigate frauds and take necessary corrective action.
- Ensure that management is responsible for fraud prevention/ detection.
As always, at the end of our investigation you will receive an Investigative Report with the details of our findings.
To get started with us today call 1-347-990-6879
piequalizer@aol.com
