Fraud Deterrence

When it comes to preventing employee theft in your business, the best defense is a good offense. Ninety-five percent of all businesses experience employee theft and management is seldom aware of the loss. The reason most business owners don’t feel the magnitude of these losses is because they are scattered all over the financial statements. A few examples include: employees padding time sheets, missing inventory, travel and entertainment abuse, or someone who is skimming cash or has created a billing or payroll scheme.

At CFS, we specialize in making sure your company and its assets are protected. By conducting a fraud deterrence and internal controls study, we can assist your company in streamlining processes, uncovering hidden costs, and sometimes finding ways to save money to enhance your bottom line. We also help detect whether accounting irregularities are inadvertent errors or an intentional cover-up of asset theft.

We have assisted multiple companies through our fraud deterrence studies. Some of the proven benefits companies experienced included:

• Assisting with cash management shortfalls resulting in $100,000 annual savings
• Recommending the establishment of an approved vendor list resulting in less opportunity for overspending
• Establishing new procedures for controlling receivable write-offs
• Implementing an accounting system for miscellaneous income sources to provide better forecasting and controls
• Detecting a large audit exposure due to a company’s failure to properly document sales tax exemptions

A fraud deterrence study can apply investigation methodologies to establish the cause and amount of damages, uncover hidden assets, detect fraud or embezzlement and document evidence.