Fraud Protection Checklist

The Association of Certified Fraud Examiners’ 2012 Report to the Nations includes a handy 11-question fraud prevention audit that can help you assess the effectiveness of your efforts or figure out what you need to do to mitigate your risk. Here’s a quick overview of the questions:

1. Is ongoing anti-fraud training provided to all employees of the organization?

2. Is an effective fraud reporting mechanism in place?

3. To increase employees’ perception of detection, [what] proactive measures [are] taken and publicized to employees?

4. Is the management climate/tone at the top one of honesty and integrity?

5. Are fraud risk assessments performed to proactively identify and mitigate the company’s vulnerabilities to internal and external fraud?

6. Are strong anti-fraud controls in place and operating effectively?

7. Does the internal audit department, if one exists, have adequate resources and authority to operate effectively and without undue influence from senior management?

8. Does the hiring policy include background checks (where permitted by law)?

9. Are employee support programs in place to assist employees struggling with addictions, mental/emotional health, family or financial problems?

10. Is an open-door policy in place that allows employees to speak freely about pressures, providing management the opportunity to alleviate such pressures before they become acute?

11. Are anonymous surveys conducted to assess employee morale?

How did you do? If you want help creating a strong anti-fraud program, contact us today.