When fraud strikes manufacturers, the effects can be devastating. The median fraud loss in the manufacturing sector was $240,000, according to the 2018 Report to the Nations published by the Association of Certified Fraud Examiners (ACFE).
No one wants to allow fraud, which has reputational costs as well as financial ones — but how do you prevent it? Monitoring employees is one common answer, but where does monitoring cross the line into illegal invasion of privacy.
One critical task for auditors is to assess the risk that fraud has caused material misstatement, then determine the auditee’s responses to those risks. In other words, where are you vulnerable, and what are you doing to protect your organization?
On October 16th, the Securities and Exchange Commission (SEC) issued its “Report of Investigation…Regarding Certain Cyber-Related Frauds” regarding certain
It’s every leader’s nightmare to suspect an employee of fraud. If someone has spotted questionable transactions or called a whistleblower hotline, you’ll need to enlist financial and legal advisors to handle the bulk of the investigation.