Fraud: The 15 Biggest Risks for 2013

Warning: This article will make you question your controls and audit procedures.

Gary Zeune
Gary Zeune

by Gary Zeune, CPA
Managing Director, The Pros & The Cons

Most risk is not in the accounting records. Why not? Because the vast majority of our work as CPAs involves monetizing and measuring activities that have already occurred.

The risk starts before we do our job. Think recording sales, not making sales. In manufacturing, think cost accounting, not making widgets.

Because our work is historical, one of the major flaws, no matter the type and size of the entity, is that we usually react to change after fraud has occurred. When a new law, regulation or competition affects our employer or client, we fail to implement new controls or audit procedures to compensate for new fraud risks. READ MORE →