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Now You See It, Now You Don’t

Don’t Let Your Money Disappear!. Now You See It, Now You Don’t. Who Are The Magicians?. ANYONE Longstanding All levels No prior history. 87% who commit fraud have never been charged before. Frauds last 18 months b efore they are detected. Average loss $60K from employees,

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Now You See It, Now You Don’t

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  1. Don’t Let Your Money Disappear!

    Now You See It,Now You Don’t

  2. Who Are The Magicians? ANYONE Longstanding All levels No prior history
  3. 87% who commit fraud have never been charged before
  4. Frauds last 18 months before they are detected
  5. Average loss $60K from employees, $180K from management
  6. Tip offs in 81% of cases Financial stress Control freak Too close to vendors Living beyond means
  7. Small organizations = more frauds for more money
  8. The longer they’ve worked The larger the fraud
  9. Audits find only 3% of the fraud
  10. The Magician’s Stage
  11. OPPORTUNITY ABRACADABRA! RATIONALIZATION INCENTIVE
  12. Incentive Medical Spouse unemployment Gambling Debt
  13. Rationalization Just borrowing They owe me They’ll never miss it
  14. Opportunity No one watching Too much control Cash Management override
  15. YOU CONTROL THE OPPORTUNITIES
  16. Tone at the Top MANAGEMENT must create the control environment Auditors simply evaluate
  17. Control Environment Rules apply to all Don’t belittle procedures No management overrides Discipline
  18. Control Environment Tipline Employees and the public Training
  19. Real –Life Examples
  20. Primary Internal Control SEGREGATION OF DUTIES
  21. Segregation of Duties Barriers solutions Involve other employees, may not be finance staff Approver must sign Small staff Signature stamp, on-behalf approvals
  22. Key Cash Controls Require receipts Involve multiple people Reduce cash when possible
  23. Key Disbursement Controls Don’t pre-sign Don’t use stamps Independent review Void check procedure
  24. Prevent Fake Vendors W-9 Already in system? No phone = red flag Verify the business
  25. Unauthorized Payments Original invoice/receipt Analytics – ex: fuel Credit card controls
  26. Other Topics Best Practices Website Your Questions
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