The Red Flags of Fraud

Fraud investigators often state that there are no small frauds, only frauds that are caught early as perpetrators rarely stop and will continue to exploit a successful scheme. As recoverability is often difficult, prevention and early detection are critical to prevent frauds from growing and to avoid time-intensive, disruptive, and expensive investigations that could lead to reputational damage. Because of their knowledge of the organization, internal auditors are in a unique position to detect fraud early and help avoid or mitigate any fallout by supporting management’s efforts to establish a culture that embraces honesty, ethics, and integrity