How vulnerable is your company or organization to fraud? Do you have adequate financial and organizational controls in place to deter fraud? A simple yet powerful measure of your company or organization's susceptibility to fraud is to review the “health” of your current controls. Analyzing and reviewing your fraud deterrence programs is designed to help you identify weaknesses and fix them before it is too late.
Why should you review the “health” of your fraud deterrence programs:
It is an affordable, easy-to-use method to identify weaknesses in your company or organization's fraud deterrence programs. In fact, most companies and organizations rate poorly on their initial review because they don't have appropriate anti-fraud controls in place. By identifying risks early, they have a chance to fix the problem before becoming a victim of a major fraud.
It is a great opportunity to establish a relationship with a Certified Fraud Examiner (CFE) whom you can call when fraud questions arise. Since the risk of fraud can be minimized but rarely eliminated, it is likely your company or organization will experience fraud in the future and will need a CFE's assistance.
Strong fraud deterrence programs bolster the confidence of investors/grantors, audit committee members (or Directors/Trustees) and the general public have in the integrity of your company or organization's financial statements or reports, which will help you attract and retain capital, donors or grants.
If you have questions regarding the fraud risk your company or organization may have, or to schedule an appointment to discuss implementation of new or a review of current fraud deterrence programs, please contact Phil McKenzie, CFE, CPA at (260) 496-8297 ext 305 or at
pdmckenzie@krousekern.com.
Risk Assessment Standard- The ASB of the AICPA has issued eight new Statements Auditing Standards.
SAS 112- The AICPA issued a new auditing standard which will be required for audits ending on or after 12/15/06.
