FRAUD INSPECTION & PREVENTION PROGRAM

WHY CLIENTS USE CREDO?
Barriers to Access
Oversight and Transparency
Electronic Safeguards
CREDO’S VALUE PROPOSITION

Analysis of Your Fraud Risk

Report that Indicates Strengths / Weaknesses

Analysis of Your Fraud Risk

Remedies / Corrective Action
SIGNS OF EMBEZZLEMENT OR FRAUD
Personal Changes
- Employee lives beyond their means (new car, lavish vacations)
- Changes in behavior (gambling, drinking, drug problems, family financial problems)
- Shows signs on job dissatisfaction (complains of not being treated “right”, thinks compensation should be higher)
- Receives personal packages at work
Company Financial Signs
- Delayed bank deposits
- Bank reconciliations have too many outstanding checks and/or late
- Disappearing petty cash or frequent need of replenishment
- Increase in credit card balances
- Accounts receivable & accounts payable balance sheet amounts do not agree with the subledger
- Duplicate vendor payments
- Too many payments to individuals
Vendor addresses are the same as employees - Vendors complain of late or no payments
- No documentation for disbursements such as receipts or expense reports
- “Fake” employees are paid via payroll
- Large increase in accounts receivable
- Customers complain they have already paid invoices
- Large or numerous credits to a particular customer
- Change in profitability
- Financial reporting system “a mess”
Operational Signs
- Works long hours without a vacation
- Refuses to give up control
- Takes records home “to work on them”
- Suggests getting rid of outside counsel, such as CPA, to “save money”
- Blames previous or other employees for errors
- Does not get along with employees and staff
- Evades questions and makes excuses for not having answers
- Wants to handle every aspect of the accounting process, yet can’t answer basic questions when asked directly
Article Source: https://www.forbes.com/sites/forbesbusinesscouncil/2022/04/08/why-boardrooms-should-see-fraud-prevention-as-a-competitive-advantage/?sh=3d195ebc4a6c