Ways to Detect Fraud in Business
No matter how hands-on we are in our business, there is still a possibility of fraud committed by our employees. We will not be able to monitor all our employees every single day. Even though we install various surveillance cameras within the office and in all other branches of our company, it will be difficult to eradicate employees who might be tempted to use company money for their own personal needs.
Among all types of companies, those who are new to the business world are most vulnerable to fraud. But because of the increased awareness in the technological development, Unified Accounting & TAX encourages every business, old or new, to create anti-fraud mechanisms to prevent big business losses.
Business Corporate Culture.
Hiring the right employees and imparting our own business culture in them is essential for every company. With skilled and trustworthy employees working for us, we would be assured that they will stick to their job description. Through proper corporate education and training, our employees would feel that they are a part of the business’ growth and our company. When our employees think this way, they would have second thoughts in misspending company funds.
Monitor Vacation Balances.
Vacations and holidays provide an opportunity for fraud. Frauds in most companies are done while everyone else is out of the office premises. So if you have an employee who is always present at the office, we should not be too happy with that. We should remember that fraudulent schemes and tampering of books are best done during vacation.
Independent Audit Team.
Regular audits conducted by an internal audit system, complemented with an auditing by independent accounting services in California, could also help in detecting and preventing fraud in our business. Since outsourced independent auditing would be free from any influence of employees of the company, it will be accurate and any type of biases will be eliminated.
Develop an Effective Reporting System.
Our employees should know when and how to report fraud in the company. First, they should know what probable anomalies should be reported to the system. When they already know the things that should be immediately conveyed, they should be informed whom and how it should be reported. The company shall make sure to maintain the confidentiality of the information and the informant to prevent unnecessary internal problems.
Hire fraud examiners.
We should never be lenient and passive in running our business. Once we suspect a possible fraud, help from a tax and accounting solutions in Fremont California would not be sufficient. We should hire an expert fraud examiner who would conduct a thorough examination of our business’ finances. Fraud examiners would also help us create and implement fraud policies within our company.
Fraudulent activities are done in secret.
We, therefore, need to establish these fraud detection and prevention mechanisms. Have you had first-hand experiences as a fraud victim? Share your story and help warn others.