Fraud Risk Assessment

PRIMARY CONTACTS: Joel Rosenthal CPA, CVA (Pittsburgh), Marc Brdar CPA, CFF, CIA (Pittsburgh)

Many organizations have little knowledge as to their ability to prevent and detect fraud, simply because management has not made it a high enough priority to address. Unfortunately, this approach can lead to the discovery of such vulnerabilities only after a fraud has been perpetrated and discovered, with the economic and reputational damage already inflicted.

One key element of an organization's fraud mitigation program is a fraud risk assessment. A fraud risk assessment is a disciplined approach where members of the team (both internal and external) identify all known fraud risks by transaction type across the organization and related controls in place that might mitigate such risks. To the extent that controls might be in place, the team identifies controls to reduce the fraud risks.

Management then evaluates the costs of implementing the controls, in combination with the establishment of acceptable fraud risk tolerances (i.e., no system of internal control can ensure that fraud absolutely cannot be perpetrated) by area.

The next step is to prioritize corrective actions and then implement necessary changes to ensure that fraud risks have been reduced to a level that is tolerable to management.

Schneider Downs Business Advisors can assist executive leadership in performing an organizational Fraud Risk Assessment. Our professionals have experience in industry and have also performed numerous fraud investigations, so they are aware of the types of fraud schemes that can be perpetrated and how they can be prevented.

case studies

 
big problem:
A not-for-profit client out of 401(k) compliance.
big thinking:
Allowing more contributions by highly paid employees.
 
big problem:
Hackers attempting a six-figure wire transfer.
big thinking:
Rapid action spearheaded active containment and response.

our thoughts on

Balancing the Moral Scales

Are charitable donations and good deeds a potential indicator of fraudulent activity? The theory of moral equilibrium, as applied to a business environment,

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Fraud Report Statistics from the Data Book 2018

Fraud Report Statistics from the Data Book 2018 The Federal Trade Commission (FTC) released the “Consumer Sentinel Network: Data Book 2018”

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Amazon Money Laundering Scam

An apparent fraud scheme has been uncovered that involves scammers’ use of CreateSpace, Amazon’s self-publishing service, to sell fake books

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Horsing Around - How A Champion Quarter-Horse Breeder Stole Millions

Rita Crundwell, Comptroller of the City of Dixon, Illinois and successful quarter-horse breeder, had no idea that her $53.7 million fraud would soon be

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Danske Bank Money Laundering Scandal Fallout

On September 19, 2018, Thomas Borgen, CEO of the Estonian Branch of Danske Bank since 2013, resigned amidst potentially the largest money laundering scandal

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Map of Pittsburgh Office
Pittsburgh

One PPG Place, Suite 1700
Pittsburgh, PA 15222

contactsd@schneiderdowns.com
p:412.261.3644     f:412.261.4876

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Columbus

65 East State Street, Suite 2000
Columbus, OH 43215

contactsd@schneiderdowns.com
p:614.621.4060     f:614.621.4062