Monday, 12 July 2010

Warning signs of fraud in your business

Increased fraud, and other types of financial crime is one of the unfortunate consequences of the current economic downturn, according to the ACCA's head of business law, John Davies.
Mr Davies advises businesses to look out for the following possible warning signs in the behaviour of their staff:
• Increased levels of stress
• Lifestyle not commensurate with salary
• Personal financial problems
• Reluctance to take annual leave
• Unwillingness to delegate
• Cosy relationship with contractors and suppliers

Business owners should also watch out for possible financial indicators of fraud, such as:
• A rise in cash transactions
• Large variations in expense claims between offices
• Poorly reconciled cash expenses
• Rising costs with no explanation, or that are not commensurate with increases in revenue
• Customer complaints and large volume of refunds to customers

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