Protect from Fraud from Within

July 25, 2017 by OSYB Staff

“According to the 2016 Report to the Nations on Occupational Fraud and Abuse by the Association of Certified Fraud Examiners, fraudulent disbursements are the most common form of asset misappropriation. Of all the types of fraudulent disbursement, billing schemes are the most common, making up an average of 22.2% of the cases and causing a median loss of about $100,000.”

Every small and medium sized business is a potential target of fraud in the procurement-to-pay process.  This type of fraud is common, difficult to prevent, and to detect.  So what can you do?

Cecilia Locati, shared on Journal of Accountancy 3 real-life case studies of procurement fraud and 7 preventative tips:

1. segregation of duties
2. robust reviews
3. vendor selection and approval
4. automated control
5. ongoing vendor monitoring and benchmarking
6. tight analytical and budget review
7. hotline

For preventative tip details  and case studies see : Do you really know where the money’s going?