Fraud Deterrence and Internal Control Assessment

Fraud is a generic term, and embraces all the multifarious means which human ingenuity can device, which are resorted to by one individual, to get an advantage over another by false representations.

It is major problem facing organizations today, and many business owners, executives, and shareholders believe that fraud is a random occurrence, striking unfortunate organizations by pure happenstance. In reality, there are 3 factors present in every fraudulent situation, and there are straightforward actions that can be taken to shield an organization from the risk of fraud. This is the essence of fraud deterrence.

Fraud deterrence is rooted in strong internal controls. Recent studies concluded that nearly 90 percent of fraud could be avoided by an appropriately defined and rigorously enforced structure of internal controls. In addition to safeguarding the assets of the organization, internal controls also are responsible for ensuring compliance with regulations and the efficiency and effectiveness of operations.

Controls guide all participants within an organization in the conduct of their duties, and help management extend their wishes and objectives throughout the organization. An effective control structure helps participants understand the risks associated with the decisions they face in their daily jobs, and the communication channels to seek additional guidance. Our team of professionals has tremendous expertise with the analysis and improvement of internal control structures within organizations.