Fraud prevention

You are probably aware of the operational and financial risks to your business, but have you considered the possibility of fraud risk? The risk of fraud exists in every organisation; it cannot be eliminated but it can be minimised. Failure to effectively manage fraud risk has consequences beyond the value of any assets misappropriated.

An effective anti-fraud program can serve to significantly reduce the risk of fraud, and should be an integral part of a company’s corporate governance process and is fundamental to protecting the enterprise.  An anti-fraud program is a program of policies and procedures, supported by senior management, which fosters ethical and responsible business behaviour and prevents, deters and detects fraudulent behaviour and illegal acts.

BDO’s fraud prevention services assist in promoting best practices designed to promote an environment that reduces the risk of fraud and facilitates early detection. With proper implementation and support from its sponsor, an anti-fraud program can help an organisation identify, remediate and monitor the specific risk factors that set the stage for fraud.
Research has shown that certain conditions involving a lack of awareness or inadequate practices can create a fertile environment for fraud within an organisation. Such conditions include:-

BDO’s fraud prevention services are designed to identify and address the above conditions so that an organisation can proactively manage its fraud risks.  BDO has the relevant experience and practical insights into fraud prevention, deterrence and investigation. In working with our clients to implement and monitor their anti-fraud program, we take into consideration our clients’ specific business, culture, location and industry.

Elements of an Anti-Fraud Program

• Fraud risk assessment
• Fraud education
• Setting the proper tone
• Ethics awareness and education
• Background investigations
• Implementing effective controls
• Mechanisms for reporting and investigating fraud
• Board and audit committee oversight

Related Professionals

Diana Wheatley CFE FCCA
Director