The risk of fraud is greatest in this period of a downturn in the economy when the financial pressure on a business increases. The current state of the anti-fraud program must be evaluated to minimize the duration and potential loss. You should evaluate the current state of the anti-fraud program and the preventive measures as well as the detective measures that are implemented.
According to a report to the National Association of Certified Fraud Examiners, companies lose an average of 7 percent of revenues through fraud. This is hard to measure when you consider the intangible such as brand name, loss of reputation and a deteriorating employee morale. Despite the many efforts a company takes to detect fraud, over 60 percent are identified by accident or by a tip. It is extremely difficult to identify the fraudster since more incidents are committed by longer term employees with no history of committing such acts in the past.