Prevention & Detection of Fraud In Small Businesses

Overview

As reported in the Association of Certified Fraud Examiners Occupational Fraud 2022:  A Report to the Nations, on average, small businesses lose 5% of their revenue due to fraud.  Can the average small business owner afford to lose 5% of their revenue due to fraud?  I think not.  This presentation is designed to illustrate the numerous ways employees commit fraud in small businesses, how to detect it, and most importantly, how to prevent it.  Both auditors and small business owners would both benefit from this presentation.

Prerequisites

None

Objectives

• Identify the opportunities to commit fraud in a small business environment
• Understanding how to address just four weaknesses could reduce the opportunity to commit fraud by an average of 75%
• Observe behavioral red flags often exhibited by fraud perpetrators
• Analyze the control environment
• Recognize the number one internal control weakness that is often present in small businesses
• Design effective internal controls to reduce material fraud in small businesses

Highlights

• The importance of the control environment
• The three most common behavioral red flags exhibited by perpetrators
• Why it is much more cost effective to prevent fraud than it is to detect fraud
• The reason why the small business owner/auditor should think about how they would steal
• Who steals and why
• Common myths about stealing that are not true
• Understanding the concept of risk management