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Keys to Finding Fraud in Your Business

No business owner wants to deal with company fraud at their facility. It can be difficult to detect and even harder to remedy. Large corporations have the luxury of employing full-time staff that monitors operations looking for suspicious activity. While smaller companies don’t have the funds for this, they can still implement some measures to reduce their risk.

Employ Temporary Auditors To Uncover Fraud

Identifying business fraud sometimes requires an aggressive approach. Consider employing external and internal auditors to look for fraudulent actions.

  • External Auditors – These professionals are trained to look for irregularities in financial statements, especially in the case of a significant loss. They also review your procedures to see whether management has the ability to override established controls.
  • Internal Auditors – Trained employees should conduct periodic internal audits of financial statements to search for fraud. Make sure the auditors are independent of the area being audited. If suspicious activity is suspected, the issue should be brought to appropriate persons for further investigation. Internal auditors can also look for violations of company procedures.

Train Employees To Look for Red Flags

Employees should be aware of irregularities that may indicate business fraud. Conduct annual training with all employees on how to detect fraud and safely report it without repercussions.

Staying vigilant in your search for business fraud will help keep your company safe.