Studies have consistently found that five percent of corporate revenues are lost to internal fraud each year. Additionally, it takes an average of 18 months for fraudulent activity to be detected. It is no surprise that smaller organizations tend to suffer disproportionately.
Preventing fraud is preferable to detecting fraud
Prosecuting a perpetrator of fraud and suffering the morale, trust, and reputational effects on top of the financial losses can be debilitating to a business. By strategically creating and implementing internal controls within your organization, you can mitigate risk while still achieving your business objectives.
To be effective, an organization’s fraud mitigation program should be based on a fraud risk assessment. A fraud risk assessment is a structured analysis where members of the team identify all known fraud risks by transaction type across the organization and evaluate related controls to mitigate such risks. The team then evaluates the effectiveness of existing processes and procedures and considers enhancements to reduce fraud risk.
R&A can help your organization identify and implement controls to manage fraud risks. We work with companies to prevent fraud or to investigate suspected fraudulent activity. Our risk assessments focus on providing valuable information to business leaders, allowing them to make strategic decisions to positively impact day-to-day operations while minimizing risk inherent in today’s complex business environments.
- Evaluate internal control systems
- Design customized internal controls
- Investigate suspected fraud
- Reconstruct accounting records
- Calculate lost profits and fraud damages
- Conduct pre-trial investigation
- Provide expert witness testimony
- Analyze financial reports