Fraud is a serious problem for small to large corporations alike. According to the Associated Certified Financial Examiners (ACFE) recent report, companies lose an estimated 5 percent of their annual revenue as a result of fraudulent activities by employees, managers, owners and executives. They also found that employees (42%) were more likely than their supervisors (38%) to commit a fraud within a company.
How can you protect your business from fraud?
Internal controls with annual risk assessment
Internal and Independent audits
Create management reviews and independent audit committees
Offer fraud training for management and employees
Have mandatory vacation and job rotation
Create a hotline/tip line and rewards for whistleblowers