Fraud Risk Assessment
What is a four-letter word that keeps business owners up at night? “Risk”. There are many kinds of risk associated with operating a business, but perhaps the most unsettling risk is fraud. The Association of Certified Fraud Examiners report annually the dollar value of business assets lost to fraud. In 2018 that figure was $7 billion. Internal control weaknesses were responsible for over half of reported fraud.
What could your business lose to fraud? Cash, inventory, equipment, intellectual property, customer data, these are just a few business assets frequently targeted by fraud. Does your business have any of these assets? What would be the fallout for your business if a fraud was perpetrated and some of your assets walked out the door?
It’s never pleasant to think about the impact of fraud on business, but it happens ever day to all sizes and types of businesses. Is there a way to prevent fraud from happening? Fortunately, there is. Conducting a “Risk Assessment” of your business’s processes and internal controls is one sure way of preventing fraud.
A “Fraud Risk Assessment” is a tool used to identify and understand an organization’s risks and weaknesses in internal controls. Through the risk assessment tool internal processes and controls of an organization are assessed and measures for correcting weaknesses that could lead to fraud are recommended. Some of the areas targeted in a “Fraud Risk Assessment” include asset misappropriation which is the theft of company revenues, inventory and fixed assets, financial statement reporting and non-financial reporting (e.g. expense reports, payroll) and regulatory compliance.
Seminar No 25 has perfected a “Fraud Risk Assessment” process for helping businesses prevent the occurrence of fraud. It is a path to tightening the internal controls in your business which will naturally lead to the prevention of future frauds and help your business run more smoothly.
Each “Fraud Risk Assessment” is tailored to your business processes and structure. Seminar No 25 professionals will work with your management team to identify internal control weaknesses and recommend solutions to mitigate risk. Seminar No 25 will consult with you on recommendations for strengthening your organization’s internal controls and deliver a “Fraud Risk Assessment” report which will include these recommendations.
Additionally, we will assist you in creating a monitoring process that will insure the future relevancy of your internal controls. Wouldn’t it be comforting to know that your business is secured against fraud. Please contact us today to talk further about how a “Fraud Risk Assessment” could secure your business.