The typical organisation loses 5% of its revenues to fraud each year. Let’s say the profit margin of an organisation is 10 per cent. That organisation requires 10 times the revenue to be generated in order to recover the lost income. Any business can be a victim of fraud and the impact can range from reputational damage to bankruptcy. There are a few simple steps that an organisation can implement to protect itself from fraud, for example: establishing and maintaining internal controls specifically designed to prevent and detect fraud, formal employment guidelines, fraud prevention employee training and regular audits.
However, more often than not it’s more the case of closing the stable door after the horse has bolted and most businesses never consider carrying out a full forensic audit before substantial losses are discovered and these losses are often just the tip of the iceberg so prompt action in employing a skilled forensic accountant can quite literally save a business. Read how Juan Carlos helped an SME detect ‘red flags’ of fraud and a conspiracy to defraud them of hundreds of thousands of pounds…….