Accounting fraud is on the rise! Is your Business at Risk?
In a recent study, PwC US found that 45% of businesses in the U.S. reported that they suffered some type of fraud in the past two years and 24 % experienced accounting fraud, typically embezzlement of some type. These numbers all represent increases over recent years – all of which should be a concern to every business owner or manager. The study also indicates that the majority (54%) of fraud is perpetrated by someone in a trusted, middle management position.
In some cases the data suggests that the number of reported cases of fraud are increasing because businesses are detecting more cases through improved internal controls and oversight.
If you haven’t done so lately, now is a good time for owners and managers to consider the state of their fraud risk management plan. Think about your own internal controls and procedures and when the last time they were reviewed, challenged and updated? Are you sure that someone isn’t able to commit a fraud in your business without being detected? Do you have proper segregation of duties and are you using the tools and technology available to help you mitigate risk?
If this seems like a bit of a daunting task, call us and we can help. Our seasoned professionals can help you with an evaluation of your people, processes, controls and technology and give you solid recommendations to improve your internal controls. In addition, we can help you implement them and provide on-going oversight so that your business doesn’t become the “one in four” that discovers accounting fraud too late!
David Chase has experience in small to medium private companies and large public companies as a senior operational and financial leader. With 14 years in finance, a CFO of multiple entities and divisional EVP experience, Dave has a breadth of experience. Dave has led or been instrumental in raising multiple rounds of equity and debt in excess of $450 million.