Fraud controls may be lacking at smaller organizations
Small organizations, defined as those with fewer than 100 employees, lag significantly behind larger counterparts in adopting formal anti-fraud measures, as revealed by a global survey conducted by the Association of Certified Fraud Examiners (ACFE). Industries most susceptible to fraud include banking and financial services, government and public administration, and manufacturing.
Experts emphasize that implementing formal antifraud controls is crucial for small businesses to prevent and detect fraud, which if undetected, could result in substantial financial losses and even bankruptcy.
Introducing these controls need not be prohibitively expensive. Antifraud strategies such as establishing a code of conduct, conducting employee training programs, and instituting formal management reviews of controls and processes can be implemented at minimal costs within many small organizations. These measures can significantly bolster efforts to prevent and detect instances of fraud.
For more information on implementing anti-fraud controls, contact a ShindelRock tax professional today.