Don’t
let your profits go up in smoke.
Small businesses are especially vulnerable
to occupational fraud. According
to the 2008 Report on Occupational Fraud & Abuse
by the Association of Certified Fraud Examiners, the
median loss suffered by organizations with fewer
than 100 employees was $200,000. This was higher
than the median loss in any other category, including
the largest organizations. The most common small
business fraud schemes are check tampering and fraudulent
billing.
The implementation of anti-fraud controls
appears to have a measurable impact on an organization’s
exposure to fraud. The 2008 Report examined
15 specific anti-fraud controls and measured the
median loss in fraud cases depending on whether organizations
did or did not have a given control at the time of
the fraud. In every comparison, there were significantly
lower losses when the controls had been implemented.
For example, organizations that conducted surprise
audits suffered a median loss of $70,000, while those
that did not had a median loss of $207,000.
Michael W. Stevens holds both the Certified Fraud
Examiner (CFE) designation offered by the Association
of Certified Fraud Examiners and the Certified in Financial
Forensics (CFF) credential offered by the American
Institute of Certified Public Accountants.
Individuals possessing the CFE designation are experts
at gathering evidence, taking statements, writing reports,
testifying to findings, resolving allegations of fraud
from inception to disposition, and assisting in the
prevention and detection of fraud.
The CFF combines specialized forensic accounting expertise
with the core knowledge and skills that make CPAs among
the most trusted business advisers. The CFF encompasses
fundamental and specialized forensic accounting skills
that CPA practitioners apply in a variety of service
areas, including: bankruptcy and insolvency; computer
forensics; economic damages; family law; fraud investigations;
litigation support; stakeholder disputes and valuations.
Fraud Investigation
- Financial institutions - lending
customer issues
- Medical and dental practices - billing issues
- Employee thefts and embezzlements
- Civil matters - partner's use of funds
- Probate matters - fiduciary's use of funds
- Marital dissolution matters - spouse's use and/or
disclosure of funds
Forensic Accounting
- Providing litigation support
and expert witness testimony
- Due diligence
- Tracing
Fraud Prevention
- Internal control evaluation
For more information contact Michael
W. Stevens, CPA/ABV/CFF, CFE or Tony
K. Morgan, CPA/ABV/CFF, at 903.534.0088.
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