The fraud world is confusing to many

There is significant misunderstanding in relation to:

  • Different types of fraud
  • How fraud is challenged and investigated
  • What can be done about it when discovered
  • The nature and standard of evidence required to prove fraud
  • Options for recovery – if any
  • Preventative action to stop it happening again
  • Where to go for help

Frauds can be broadly classified into the following areas (not exhaustive):

Corruption

  • Conflict of interest – sales and purchases
  • Bribery – kickbacks and bid rigging
  • Illegal gratuities
  • Economic extortion

Asset Misappropriation

• Cash

  • Theft of cash on hand and in depots
  • Skimming sales, understating and refund manipulation
  • Fraudulent disbursement
  • Re-invoices, payroll, expenses, cheques, cash till

• Non Cash

  • Misuse of assets
  • Theft of assets and false recording

Fraudulent Statements

• Financial

  • Asset/Revenue overstatements and understatement
  • Timing differences
  • Fictitious revenues
  • Concealed liabilities
  • Improper/lack of disclosure
  • Improper asset valuations

• Non Financial

  • Employee credentials
  • Internal documents
  • External documents

 

If you need to discuss informally how fraud might be affecting your business or organisation please get in touch.

Source ACFE report to the Nations 2010