In the last installment in this series, we introduced the topic of fraud. We discussed what fraud is and what is needed for it to occur. I ended it by saying that you can’t completely eliminate the possibility of fraud occurring. We can, however, reduce the chances that fraud will occur. So, how do we do accomplish that?
Online Exclusive: Accounting Basics for Small Contractors — Fraud Prevention
It’s less expensive to prevent fraud from occurring than the costs involved in detecting a fraud. By communicating the company’s policy on fraud, it has introduced the perception of detection (possibility of getting caught). A strong system of internal controls is considered to be the most valuable fraud prevention tool for a company.