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
“Getting fraud prevention right, on the other hand, could be a major factor in fueling growth. By leveraging the right technology and processes, companies can help prevent fraud and reassure customers that they can transact online with confidence. This, in turn, can improve the customer experience.”
