ARA Fraud & Forensic Services: Fraud Risk Assessments

More than 85% of employees who are caught stealing from their employer have never been charged or convicted for a fraud related offense.

Every business is vulnerable to various forms of employee theft or embezzlement. ARA Fraud & Forensic Services works with privately held entities, non profit organizations and medical practice groups to assess their risk for fraud at a comprehensive level. A fraud risk assessment offers organizations the opportunity to identify vulnerable areas which lead to theft or embezzlement and provides solutions to mitigate the potential for fraud to occur.

At ARA, we work with business owners and non profit’s to develop customized plans that offer proactive risk mitigation solutions. The fraud risk assessment is a comprehensive process that looks at the following key control areas:

·        Employee morale

·        Cash handling and procedures

·        Accounts payable and receivable

·        Financials

·        HR and payroll systems

·        Gaps in operational controls

·        Physical controls

·        Inventory procedures

·        Conflicts of interest

·        Corruption

·        Basic IT controls

·        New hire procedures

·        Company policies and procedures

·        Organizational culture

We work closely with our clients to familiarize ourselves with their business and identify the necessary steps needed to protect their organization from fraud. A fraud risk assessment cannot guarantee that a loss will not occur.

However, it identifies opportunities and provides solutions to minimize the potential for fraud. Based on a survey conducted by the Association of Certified Fraud Examiners, 31% of all small businesses in the United States are victims of fraud each year, that’s almost one out of every three businesses. A fraud risk assessment helps organizations to not become another statistic.