PWC reveals 35% of South African business owners experienced financial statement fraud in 2014. Don't be a victim
Financial statement fraud is one of the top five major economic crimes in SA.
That's over one third of businesses who falsified their figures in 2014.
What's more, senior and middle management are mostly responsible. And it could take years to see the true impact of this fraud!
But, you don't have to be a victim! Here's the information you need to eliminate the risk of financial statement fraud in your business today...
Warning! Put a stop to fraud before it cripples your business...
Do your manager's have ulterior motives?
When you look for fraud, don't just look at the numbers. Look at the bigger picture of your business. Ask yourself the following questions to help you identify if your managers have ulterior motives.
What are their backgrounds?
Make sure you appoint trustworthy people to deal with your company finances. If they have a history of being unreliable, rather move them away from your finances and payroll.
What motivations drive them?
Where there's strong management influence and ulterior motives, there are high chances of fraud. (For example, where Jeffrey Skilling and Kenneth Lay of Enron influenced the market, industry and company).
What relationships do they have with financial institutions, related parties, investors, etc?
Look at if their relationships are disclosed and transparent. It is easier to trust those who are completely transparent and disclose conflict of interest.
For more tools on how to eliminate fraud in your business, get your copy of the Practical Accountancy Loose Leaf today.
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