Protecting Against Fraud

Almost everyone has heard about fraud affecting business. While you might be lucky not to have experienced fraud first-hand, you can appreciate the devastating effect of malfeasance and broken trust in companies.

Entrepreneurs are sometimes too trusting of their employees, especially ones who started at the beginning. Too much trust without built-in internal controls leads to a potential environment for fraud.

While most Entrepreneurs are aware of the need for internal controls in their companies, the size of their organization often limits proper segregation of duties.

In any event, Entrepreneurs should be vigilant about proper checks and balances as they build their organizations. While trusting your people is a fine virtue, a solid company is built on strong systems and procedures with proper internal controls.

Even in a smaller organization, creative division of responsibilities with reviews and approvals can provide adequate controls.

Protect your company against fraud by doing the right things!

Ravi Patel

www.patelCFOservices.com

 

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Published in: on May 21, 2013 at 4:52 am  Leave a Comment  
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