If you’re like most business owners and executives, you may not actively search for fraud risks — until there’s an incident and you’re facing possible losses. Although publicly traded companies must conduct fraud risk assessments, privately held businesses don’t have the same requirements. Nevertheless, reviewing internal controls for gaps that might allow crooks to slip through is recommended for all companies. Assess fraud risk before experiencing losses: 4 major ways A comprehensive risk assessment might start in the areas where fraud is most likely to happen, such as accounts payable, purchasing and IT. But don’t stop there. If you close a door in only one department, those bent on fraud will find openings elsewhere. Look at your internal controls in the same way a dishonest employee would...
