Online Exclusive: Accounting Basics for Small Contractors — Fraud Schemes and Internal Controls Alex Wong, Getty Images

Online Exclusive: Accounting Basics for Small Contractors — Fraud Schemes and Internal Controls

There are a few ways to forge a check. An employee submits fraudulent invoices whereby the company then pays out checks. The technician will pocket cash and tell the office the customer canceled the call when they got there.

In the last installment in this series, we talked about the leg of the fraud triangle that we can control — opportunity. I also introduced you to the term “internal controls” and why it’s important to have them established in your company.

Let’s take a look at some specific fraud schemes and internal control procedures that could combat each of the schemes.

Forging or Altering Checks

There are a few ways to forge a check.

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