Fraud Prevention and Detection – Auditors in Missouri

How much damage can fraud do to your business?

It can cost thousands in funds and harm your business’s reputation and your customer’s trust in you. In order to address this debilitating issue in your company, leaders should think about actions toward prevention and detection. While prevention is the ideal route, no business (no matter how big or small) is immune. If unfortunately, your company were to experience this problem early detection is key.

Prevention

Fraud prevention is implemented through preventive controls. These controls can be a standards-based information security management system or a framework. Such controls function as treatments for identified risks. Other prevention controls include human resource procedures, IT controls, or operational controls.

These could take the form of background investigations, training against fraud, limiting security access based on job role and requirements, authority limits, or segregation of duties.

It is important to continually document and monitor while implementing these controls in order to be effective. Additional training may need to be held in order for all personnel to be up to date with the proper protocol and procedures. Also, learn the potential warning signs of business fraud.

Detection

Strengthen controls over transaction authorizations and use continuous auditing and monitoring to test and validate the effectiveness of your controls. Companies should hire external auditors in Missouri in addition to conducting internal audits. By examining records, controls, and operations, you can ensure that your financial statements are accurate, establish credibility and confirm that you are in compliance with the IRS.

In addition, other process controls should be used and fraud hotlines should be promoted and provide anonymity.

It is important for your business or organization to implement both fraud prevention and detection procedures and processes. If you have any questions regarding auditing your company’s financial statements, please contact us at Schultz, Wood & Rapp, your Missouri Auditors.