Fraud Risk Diagnostic Evaluation

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

Fraud can be catastrophic in both financial and reputational terms, and therefore, requires executive commitment to address related risks so that an organization is adequately protected. Unfortunately, many companies find out about their weaknesses only after they have been exploited by a fraudster. Even smaller frauds are a drain on an organization's financial resources. In today's environment, no organization wants to throw away even a small percentage of revenues (3% to 5%) in fraud losses.

Given recent headlines, fraud is at least on the radar of most organizational leaders. Executives typically wonder whether fraud can occur within their organization, beholden to their trust that their accountants have things in order, but lacking the expertise or resources to truly assess the status of their organization's fraud mitigation program (if it exists).

Schneider Downs Business Advisors can assist executive leadership by performing an organizational Fraud Risk Diagnostic Evaluation, the first step in assessing an organization's fraud readiness.

The minimal investment made for a Fraud Risk Diagnostic Evaluation can be offset by triggering necessary improvements or by simply serving as validation of the current state of the fraud mitigation program.

Fraud Mitigation Program

Our quick and efficient approach consists of an analysis of the following areas an organization's fraud mitigation program:

  • Governance & Communication
  • Management Ownership of Responsibility
  • Identification of Key Fraud Risks
  • Fraud Risk Tolerance and Management
  • Environment Level Controls
  • Process Level Controls
  • Proactive Fraud Detection and Investigation

In evaluating these areas, we highlight weaknesses in an organization's fraud mitigation program, so that the organization can make necessary modifications, including the possible performance of a fraud risk assessment.

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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contactsd@schneiderdowns.com
p:412.261.3644     f:412.261.4876

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Columbus, OH 43215

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