Have you thought about the effects of fraud on your business?

What kind of controls does your business have in place to detect fraud? Could someone easily override them to conceal their fraud?

Business owners are often unaware of the fraud risks they can be exposed to and therefore do not have adequate processes in place to protect them. We find asking the tough questions will help you effectively manage and terminate fraud, and detect new and emerging risks in your business.

Does your business need a Fraud Risk Assessment?

Short answer: yes!

All organisations should conduct a Fraud Risk Assessment and complete the necessary steps to ensure it is relevant and current. It is also a great process to take in regards to best practice, having good corporate governance and making sound business decisions.

A well conducted Fraud Risk Assessment process can proactively identify and address your organisation’s vulnerabilities to both external and internal fraud. Our expert team of advisors can help you:

  • Raise awareness about fraud within the business;
  • Identify vulnerabilities, including controls that may have fallen through the gaps;
  • Develop plans to mitigate fraud risk; and
  • Help you comply with regulations and professional standards.
  • Who should conduct the Fraud Risk Assessment?

    Assembling the right team to lead and conduct the work is essential to its success and should include a range of knowledge, skills and perspectives. The team can be made up of external and internal resources including:

  • Accounting and finance personnel;
  • Members of the Board and sub-committees;
  • Non-financial business unit and operations personnel; and
  • Risk management personnel.
  • Reporting the results

    The success of the Fraud Risk Assessment is also dependent on how effectively the results are reported and what action is taken from those results. The report should clearly identify what the fraud risks are, how they are currently controlled and the steps the organisation may need to take to improve fraud controls, whether they are preventative or detective.

    The assessment process is not an exact science, but proactive attention will allow you to identify and correct any internal control deficiencies and help mitigate fraud risk as quickly as possible.