The alarm could be a whistleblower’s allegation left on a tip line. Or, it could be the “aha!” moment of discovering an issue during a routine audit. However it comes to light, the possibility of fraud is one of the scarier scenarios for almost any organization.
To help reduce fraud risk, companies with leading practices make significant investments in designing anti-fraud programs and instructing internal auditors or internal accountants to be alert for red flags that serve as fraud indicators. While there is no exact science to finding fraud or creating a perfect antifraud program, the experiences of organizations that have faced the problem can provide in-house and external counsel with useful guidance in advising their management team or clients. This article shares practical tips for identifying and managing fraud risk, improving the efficiency and effectiveness of a fraud investigation, and implementing an anti-fraud program.