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Fraud Facts and Prevention

Gregory B. Capin, CPA | posted 11/02/2007
This article provided by the Engstrom Institute

Fraud, even within Christian organizations, occurs. Consider these eight important facts.

1. There is a high probability that some level of fraud or abuse already exists in your organization.
2. The real cost to an organization of a reported instance of fraud or abuse cannot be measured in terms of the dollars lost.
3. People and circumstances change over time and those changes can increase the risk of internal fraud and abuse.
4. While internal controls play a part in deterring fraud and abuse, they represent but one facet of fraud prevention and detection.
5. Reliance on the external audit as the primary method of detecting fraud is not enough.
6. Everyone in an organization has a role in the prevention and detection of fraud and abuse.
7. Minor fraud occurs in lower levels of an organization. Major fraud happens at the top of an organization.
8. Fraud occurs when all three of the following conditions are present:
   

Examples of Fraud Prevention Steps

There a number of strategies organizations can employ to reduce risk ...

See also:

 dishonesty, fraud, fraud policy, fraud prevention, fraud risk, misconduct, Risk management