Small to medium-sized companies often fail to address fraud-related risk adequately. Often, these organizations lack the resources needed to mitigate this risk. In other cases, owners or senior management underestimate the scope of the issue. All organizations, regardless of size, must be aware of the risks associated with intentional fraud. A significant and effective fraud scheme could present going concern issues. We'll explore why fraud occurs, examining defalcations that are often executed against smaller entities. Then review measures that organizations can implement to increase security and stop fraud.
Learning Objectives
- List reasons that employees and others that are internal to an organization choose to undertake fraudulent acts
- Explain the factors that make smaller organizations attractive to those considering fraud
- Understand specific internal control measures that can help to reduce fraud activities executed against smaller and medium-sized companies
Major Topics
- The reasons for fraud
- Fraudulent acts that are initiated against smaller organizations
- Methods to stop fraud attempts against small businesses
