Infographic: What are the most common ways companies uncover occupational fraud?
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You don’t have to be a detective to find fraud If fraud is occurring in your company, you'll want to uncover it as quickly as possible to limit financial losses. The Association of Certified Fraud Examiners' 2020 Report to the Nations reveals the most common ways businesses find fraud:
Tips - 43% Employees provide half of all fraud tips. The rest come from customers, vendors and anonymous sources. Companies with reporting mechanisms detect fraud more quickly than those without them.
Internal Audit - 15% Simply having an internal audit department reduces average fraud losses by 50%. These departments exist in 75% of organizations, but only one-third of small companies have them.
Management Review - 12% In approximately 68% of organizations, management reviews controls, accounts and transactions for adherence to company policies. The review is associated with lower-than-average fraud losses. Schemes are also detected through account reconciliation, external audits, document examination and surveillance. For help implementing internal controls, contact us.