Forensic and Recovery

How to discover and prevent fraud?

According to international research conducted by the Association of Certified Fraud Examiners, in a majority of cases the perpetrator of fraud (Report to the Nation on Occupational Fraud and Abuse, ACFE) was male, in early middle age (36-45), had been working less than five years, and had a higher education. In most cases, fraudsters were employees of accounting depart-ments (22%), sales departments (14%) and administration and marketing departments (14%).

 How to discover fraud ?

Many enterprises in Eastern Europe have quite a thin internal control system. Business owners often believe that an external audit is enough for fraud pre-vention and fail to consider the fact that external financial audit services are focused on reviewing accounting reports.

 In most cases, useful information about incidents of fraud was received from employees, customers and suppliers (40.2%), followed by internal control mechanisms (15.4%) and internal audit (13.9%) were effective sources of fraud detection.

 How to prevent fraud ?

 Three commonly used opportunities for prevention of fraud can be recommended for owners of business:

  • Implement mechanisms of internal control. Effectively designed, implemented and operated system of internal control helps to discover mistakes and prevent fraud
  • Create for employees an anonymous fraud reporting system. Motivate your staff to help in discovery and prevention of fraudulent behavior (material or non-material motivation
  •  Unannounced internal audits and controls are also effective and will provide discipline for your staff

How we can help?

 Whether you are concerned about fraudulent activity within your organization or it’s time to institute a preventive anti-fraud program, your interests and those of stakeholders and business partners are of primary concern. 

 Our forensic services are helping entrepreneurs avoid fraud losses or reduce consequences of fraud uncovered, including:

  • Fraud risk assessments; 
  • Fraud control design and reviews. 
  • Anti-fraud programsFraud prevention consulting
  • Anti-Money Laundering compliance consulting
  • Information security and cybercrime consulting;
  • Internal investigations;
  • Assistance in preparing claims for recovery of damages;
  • Expert witness opinions in court

Donoway Group  firms bring unmatched expertise and experience to each engagement and works fast to address and preserve your company’s financial and professional integrity. When clients have international operations, we assign a team of multicultural, multidisciplinary professionals who are fluent in the risks, culture, and regulatory issues most relevant to your business.