Fraud Prevention & Detection

The "hidden" nature of fraud is what makes its impact on U.S. businesses so difficult to accurately measure. However, in the 2006 Report to the Nation, issued by the Association for Certified Fraud Examiners, it is estimated that the median loss caused by occupational fraud during that time was $159,000, with one-quarter of the 1,134 cases reviewed causing at least $1 million in losses and nine of the cases causing losses of $1 billion or more.

There are several things businesses can do to lessen the likelihood of fraud. Among them are:

• Implement hiring controls. Perform thorough background checks and rehire testing.
• Develop strong company policies to control and cross-reference potential fraud areas.
• Segregate duties and give clear lines of responsibility.
• Require proper documentation consistently.
• Conduct independent surprise audits of systems.
• Create physical safeguards and security controls.
• Maintain effective personnel policies, including rotation of assignments and mandatory vacations.
• Enforce policies (and cases of fraud) with strict repercussions and/or punishment

Smith & Howard’s fraud prevention and detection professionals are experienced in reviewing internal controls, systems and procedures and making suggestions and recommendations for improvements to prevent occupational fraud and financial loss. In addition, our assurance team uses our knowledge of your industry and your business to help you move quickly to uncover and analyze any suspected fraud, assess damages, and provide effective support.