In the ACFE 2012 “Report to the Nations on Occupational Fraud and Abuse” the observation was made that “the frauds reported to us lasted a median of 18 months before being detected.” The speed at which fraud is detected is a function of the effectiveness of internal controls and, surprisingly, the relationship of management/ownership with staff.

In the ACFE fraud study, the leading means of discovery was tips by individuals with knowledge of the fraud. However, relying on tips to alert management to embezzlement or other forms of fraud is a risky strategy … (click here for complete article in HTML or PDF formats).

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