Assess for fraud risk before you experience financial losses - Crawford Ellenbogen

Privately held businesses aren’t required to conduct fraud risk assessments, but you should do so anyway. In general, there are four ways employees might exploit your system: Fraudulent financial reporting, misappropriation of assets, improper expenditures and illicitly obtained revenue and assets. To prevent these schemes, interview executives and managers to ensure they’re setting the right “tone at the top.” Then ensure proper segregation of duties, particularly in the accounting area. Also confirm that you’ve allocated appropriate financial resources to preventing and fighting fraud. Contact us for help.