For Preventing Fraud and Driving Business Growth The importance of strong internal controls cannot be overstated. They form the foundation for financial integrity, operational efficiency, regulatory compliance, and, ultimately, long-term business success. This article explores how strong internal controls not only safeguard against fraud but also serve as a catalyst for business growth and sustainability. In today’s fast-paced and evolving business environment, the importance of strong internal controls cannot be overstated. Most business owners and managers associate internal controls with fraud prevention and detection. However, effective internal controls serve a much broader purpose. They form the foundation for financial integrity,…
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The Vital Role of Seamless Internal Communications When occupational fraud occurs within an organization, it is not a surprise that the root cause of the fraud was due to deficient internal controls. However, what does “internal controls” mean to all parties involved at an organization? Accountants should know what “internal controls” are, but does this concept resonate with the personnel within the sales or operations departments? Perhaps not. This article discusses the importance of having all members of the organization involved in the internal control process. Internal Communication and its Impact on Fraud Prevention When occupational fraud occurs within an…
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Fraud Issues in the Hospitality Industry Post-COVID-19 Pandemic The hospitality industry is already experiencing an increase in fraud, and everyone associated with the business—including operators, owners, managers, employees, and even guests—is at risk of being affected. In this article, the author identifies areas of fraud and provides recommendations to mitigate risk. As a self-proclaimed foodie, I am excited that we will once again be able to go to restaurants and hotels. However, as a forensic accountant I am concerned for the hospitality establishments that, of necessity, focused on sustaining business and staff over back-office matters such as internal financial controls.…
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in the Cryptocurrency Economy Although cryptocurrency and blockchain technology create an environment that can help combat fraud within their systems, their introduction into the global economy has opened numerous doors for nefarious activity. This article provides an overview of what is cryptocurrency, blockchain technology, and the rise of threats to digital assets. Fraud used to be much simpler for the fraudster—they exploited weakness in the internal controls of a company and executed one or more transactions leading to theft of funds or property. Sometimes they concealed the crime; other times they felt no need to do so. Today’s world is…
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As the regulatory landscape has evolved, compliance departments and the chief compliance officer (CCO) have become increasingly important, helping organizations to adapt. Many CCOs sit on boards and report directly to the chief executive. They are no longer on the outside looking in on business development; instead, they are a key cog in the machinations of the C-suite. To read the full article in Financier Worldwide, click: The Evolution of Compliance.
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“I Should Have Known!” When you hear the news that someone was just arrested for committing fraud at their work, it is usually accompanied by fellow employees or managers saying one of two things. Either, “I never thought they were capable of stealing” or “I should have seen it coming.” Why do employers say that they “should have known” and how exactly is it that they should have known? In my experience, there are some common characteristics of people who perpetrate a fraud. And if business owners are aware and vigilant about their business, they might never have to say,…
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There Are All Kinds of Different Standards to Consider In Sophisticated Valuations. Here are Some Tips. Control premiums are difficult to calculate. Why? Because there are so many variables. You may need to adjust earnings to reflect a control value (i.e., restating owner’s compensation and adjusting discretionary expenses). But wait: There’s more! There are minority earnings. And a variety of people to deal with: a business owner’s son, for instance, might have a quite different idea of what an appropriate premium should be compared to a differing idea from an investment banker who’s part of your team. Rand M. Curtiss…