Many closely held business owners are under the impression that because their organizations are small, that they are not susceptible to fraud. Most of them would say that due to the minimal number of employees and low turnover, that they are not concerned about fraud. Unfortunately, nothing could be farther from the truth. According to the Association of Certified Fraud Examiner’s “Report on the Nation”, small businesses are in fact the type of organizations most vulnerable to fraud. Minimal staffing translates to a lack of internal control, empowering employees to have too much control over the assets of an organization, thereby promoting misappropriation of those assets.
Statistics presented in the ACFE’s report reveal that US organizations loose 5% of their annual revenues to fraud. Applied to the projected 2013 U.S. Gross Domestic Product, to approximately $3.7 billion in fraud losses. The median loss caused by the occupational frauds in this study was $145,000. The typical fraud in the study lasted two years.
Having Master Analysts in Financial Forensics in the areas of economic damages and fraud deterrence & detection (MAFF’s) as part of our team allows Lara & Weidman Forensic CPA’s, P.A. to assist clients in assessing their fraud risk and develop cost-effective programs to reduce their exposure. If fraud is detected, the professional staff at Lara & Weidman Forensic CPAs can provide invaluable assistance in determining the cause and extent of the fraud.
FRAUD DETERRENCE AND COMPLIANCE CONSULTING
Fraud, in the context of misappropriation of assets, is defined as “theft of an organization’s assets.” Lara & Weidman have extensive experience in designing programs that defer fraud and protect an organization’s assets.
Our Fraud Deterrence Program is designed to analyze the company’s current organizational controls, identify assets susceptible to misappropriation, identify weak or missing systems and procedures, and develop controls for vulnerable areas.