Fraud FAQs

How do I know if my business is vulnerable to fraud?

In today’s environment, all businesses are vulnerable to fraud.  The Association of Certified Fraud Examiners (ACFE) estimates that a typical organization loses 5% of revenues in each year as a result of fraud.  A Fraud Risk Assessment can help a business determine where it is most vulnerable to fraud and want controls should be implemented to mitigate the risk.

What is a Fraud Risk Assessment?

A Fraud Risk Assessment identifies and addresses an organization’s vulnerabilities to occupational fraud.  The assessment allows the organization to develop a fraud risk response to the identified risks.

What is occupational fraud?

Occupational fraud can be defined as: “the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the organization’s resources or assets.”  Simply stated, this type of fraud occurs when an employee, manager, or executive commits fraud against his or her employer.

Should my organization have a formal fraud policy?

Absolutely!  A formal fraud policy sets the tone and culture within the organization that fraud of kind will not be tolerated.  Additionally, all employees can sign the fraud policy to ensure that they are aware of expectations.