As your corporate organisation develops and expands, accounting fraud continues to advance to increasingly complicated levels. The complexity and diversity of fraud risks are increasing the likelihood that it will affect your firm. The hard circumstances that commercial enterprises encounter in the UAE have been observed by KGRN Accounting Associates, Dubai. We now have a better understanding of how fraudulent accounting practises start and how companies like yours may defend themselves.
Increase in Accounting Fraud
You must comprehend how occupational fraud specifically arises and changes before you can take action to safeguard your business from it. According to a PricewaterhouseCoopers research, at least 37% of businesses worldwide have dealt with the fallout from fraud in the past two years. In the Middle East, the figure was 21%. The quantity of fraudulent operations is rising, as are the number of fraudulent incidents in organisations. Therefore, in order to prevent becoming the next target, it is imperative that every commercial enterprise take immediate and effective security measures.
Common occupational frauds include asset misappropriation and procurement fraud, in which the offender gains an advantage and avoids commitments or starts to harm the firm. Typically, fraud in the procurement process occurs during the contracting and selection of vendors.
Who is Committing Accounting Fraud Today?
There has been an interesting development with regards to the persons who actually commit the most fraud. The statistics show that fraud committed by internal parties is much higher in comparison to fraud by external parties. Also, the main culprits in internal fraud fall within the middle management category. While fraudulent activities among junior employees is much less.
Cybercrime is a Growing Issue
It does not come as a surprise that cybersecurity needs to beef up for all kinds of businesses. Internal accounting fraud can be easily conducted through cybercrime. And, as we continue to progress and get more of our private business information on cyberspace the threat of cybercrime it continue to increase and so will fraud in businesses.
Protecting Your Company from the Increasing threat of Accounting Fraud
It has become easier to detect acts of fraud with the help of better internal control and an increased risk assessment activates. But the main cause and increased progress of fraud inside business establishments is the extremely relaxed approach everyone has towards the prevention of fraud.
The Importance of Assessment
Assessments are vital to know if there are changes of any kind big or small that could result in accounting fraud. Performing assessments once in a way is not enough. The more the frequent the better. Also make sure you do random checks so the fraudster can be caught in the act and employees with the intention of committing fraud will back off. If the frequency of assessments reduces during slow periods, you are leaving yourself wide open for fraud criminals to attack you.
Internal Control
The risk of fraud will always exist in business. It is up to you to develop and implement internal controls that enable you protect your business. To improve your control over your accounting, you can ask reliable and trustworthy accountants for their advice and assistance.
It is essential for you to stay aware and constantly try to improve your protection plan. KGRN can help you out with this through our tried and tested accounting solutions and business growth strategies.
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