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Focus on Fraud & Forensics: RubinBrown Joins Movement to Shine a Spotlight on Fraud

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International Fraud Awareness Week kicks off November 13, 2016 worldwide. ACFE provides statistics and prevention checklist.
November 14, 2016

International Fraud Awareness Week kicks off November 13, 2016 Worldwide

International Fraud Awareness WeekFraud costs organizations worldwide an estimated 5% of their annual revenues, according to a study conducted by the Association of Certified Fraud Examiners (ACFE). The ACFE’s 2016 Report to the Nations on Occupational Fraud and Abuse analyzed 2,410 occupational fraud cases that caused a total loss of more than $6.3 billion.

The seriousness of the global fraud problem is why RubinBrown is announcing that it will be participating in International Fraud Awareness Week, November 13-19, 2016, as an official supporter to promote anti-fraud awareness and education. The movement, known commonly as Fraud Week, champions the need to proactively fight fraud and help safeguard business and investments from the growing fraud problem.

As a part of Fraud Week, we are providing providing you with the following information and tools to help your organization identify fraud risks and deter fraud your employee’s may be committing.


The Staggering Cost of Fraud

As illustrated in an infographic provided by ACFE, occupational fraud is pervasive. The ACFE’s 2016 Report to the Nations on Occupational Fraud and Abuse reports that:

  • Fraud costs organizations 5% of their annual revenues
  • Each fraud incident costs organizations, on average, $150,000
  • The fraud went undetected for an average of 18 months
  • Fraud is most often detect by a tip
  • Organizations with reporting hotlines detected fraud faster and incurred fewer losses
  • Proactive data monitoring was associated with 54% lower losses and fraud was detected in half the time
  • The most prominent organizational weaknesses that contributed to the fraud were: lack of internal controls, lack of management review and the override of exiting internal controls


Click here to see the infographic.


Fraud Prevention Checklist

The ACFE’s 2016 Report to the Nations on Occupational Fraud and Abuse includes a fraud prevention checklist to help you measure the effectiveness of your organization’s fraud prevention measures. The eleven ACFE questions can be a useful way to start a dialogue on measuring and mitigating your fraud risks.

A sample of some of the questions are included below.

  • Is ongoing anti-fraud training provided to all employees of the organization?
  • Is an effective fraud reporting mechanism in place?
  • Is the management climate/tone at the top one of honesty and integrity?
  • Are fraud risk assessments performed to proactively identify and mitigate the company’s vulnerabilities to internal and external fraud?
  • Are employee support programs in place to assist employees struggling with addiction, mental/emotional health, family or financial problems?
  • Is an open-door policy in place that allows employees to speak freely about pressures, providing management the opportunity to alleviate such pressures before they become acute?

Click here to see the entire checklist.

 

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