Contact: Bart McGloin CPA, CFE, CFF at bmcgloin@dopkins.com

Anti-fraud program analysis

Each year, companies lose an estimated $3.7 trillion to fraud globally, with the typical organization losing approximately 5 percent of revenues*. A distinct advantage in combating fraud is a strong anti-fraud program. However, simply having an anti-fraud policy listed in your employee handbook is not enough. The policy must be updated continually to reflect the current environment. Employees must be trained regularly to detect and deter fraud and to be educated on the protocols in place for reporting suspected fraudulent activity.

Ensure your organization is doing all it can to combat fraud. Contact Dopkins Forensic Group to begin your anti-fraud program analysis.

The Dopkins’ approach

Our professionals focus first on understanding our clients’ needs and then we collaborate with management to provide a customized anti-fraud program. We evaluate both the design and the operating effectiveness of the program while considering the following risks:

• Company specific risks
• Geography specific risks
• Industry specific fraud
• Regulatory requirements

Our forensic accounting professionals leverage the five-steps of an effective anti-fraud program to establish effective controls within an organization.

Governance policies and procedures

If a fraud risk policy is already in place, we will evaluate its scope and quality control measures, providing recommendations for areas of risk and exposure. If no policy exists, we will design and implement a fraud risk policy tailored to your organization’s needs.

Our customized anti-fraud program analysis includes an assessment of the company’s governance policy and procedures to determine the extent and effectiveness of fraud risk oversight.

Awareness and communications

While a policy helps to limit your exposure, adherence, awareness and communication are critical. Our assessment includes an evaluation of anti-fraud communication programs to stakeholders.

If a fraud hotline exists we will assess its overall effectiveness within the organization. We will create fraud awareness training for the organization in order to establish and reinforce a zero-tolerance culture.

Fraud risk assessment

Within the fraud risk assessment step there are two main deliverables that are developed:

• Fraud risk matrix: We evaluate the design of the organization’s structure, operations, policies and controls to identify potential areas of weakness. We then evaluate and discuss with management the residual risk identified
• Fraud risk heat map: Resulting from our assessment of potential fraud risks, we quantify the significance and likelihood of each identified fraud risk graphically with a heat map

Fraud monitoring

While all steps in this process are important, the fraud monitoring component is the cornerstone to the success of the overall program. To ensure a thorough fraud monitoring function is in place we provide the following:

• Gap analysis: We prepare a gap analysis to compare the company’s program to best practices based on insight from leading third-party organizations like the Institute of Internal Auditors and Association of Certified Fraud Examiners. Our analysis will highlight areas in which your organization can bolster your defenses relating to fraud.
• Prevention and detection scorecard: A proactive prevention scorecard is critical for every company in the battle to prevent fraud. We work with management to develop detection controls and techniques to discover fraud events when preventive measures fail or unmitigated risks are realized.
• Electronic review of transactions: Our forensic accounting specialists leverage our proprietary data analytics platform, mAnalytics, to review your vendors, employees, invoices, payments, payroll transactions and other data sets of interest. In some instances, we compare your data with public records to identify potential exposure to fraud and out-of-compliance instances with regulations.

Event management

As much as organizations may try to avoid it, fraud may occur at some point. Therefore, it is important to ensure your organization has a mechanism in place to handle these events.

We collaborate with our clients to develop an incident response decision matrix. We work with management to implement a coordinated approach to investigation of potential fraud and then we develop corrective action plans. We analyze organizational structure and assign responsibilities and action items to help ensure potential fraud is addressed appropriately and in a timely manner.

The right team

Dopkins’ forensic accounting and fraud investigation team is staffed with certified public accountants, certified fraud examiners, certified internal auditors and certified anti-money laundering specialists who help clients develop programs to detect and prevent fraud and train employees to ensure a strong anti-fraud culture exists within an organization. We bring the right resources and experience to our clients based on your industry and the needs of your organization.

Our team has investigated frauds ranging from simple occupational fraud, employee embezzlement, and complex financial statement fraud, to violations of corruption laws and money laundering statutes. Through our extensive experience, we are trained to identify and resolve fraud risks that can save your organization potential losses and future litigation costs.

For more information, please contact Bart McGloin CPA, CFE at bmcgloin@dopkins.com.