GBQ

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Fraud Risk Assessment

The best way to deal with fraud is to prevent it. Unfortunately, for many organizations preventive measures are only thoroughly explored after a fraud has occurred. Our Fraud Risk Assessment services are designed to minimize your risk of fraud. We will assess your organization’s potential fraud schemes or scenarios to determine your key fraud risks. We then will help you to identify the key fraud controls existing (or not existing) in your organization to mitigate the identified fraud risks. We provide remediation plans and recommendations to fill in your control gaps or fix the deficiencies that we find. However, in the event a fraud has occurred in your organization, we can assist with the investigation. We partner with professionals from our Forensic and Dispute Advisory group to provide both investigation and litigation services as your needs require.

Fraud risk exists in all organization

Fraud is defined as an intentional act committed to secure an unfair or unlawful gain and can be further divided into three main types:

1. Misappropriation of Assets – Theft or misuse of an organization’s assets, including data.

2. Corruption – The wrongful use of influence in a business deal.

3. Fraudulent Financial Reporting – Intentional misstatement of an organization’s financial statements.

Standard setting organizations are providing more guidance and increasing their attention to the assessment and mitigation of fraud risk within operational, compliance, financial reporting, and strategic concerns.

Fraud risk is unique in that the best way to assess the risk is to understand schemes and scenarios in order to test the adequacy of mitigating controls.

Internal and external fraud risk exists at every company

  • External Fraud – Committed by external parties against the organization
  • Internal Fraud (Occupational Fraud) – Committed by internal parties against the organization for personal gain or improvement of financial results.