In the following Gorfine, Schiller & Gardyn podcast, Scott Rodgville, a Director at GSG, and Mike Schiller, a Manager at GSG, provide a deep-dive perspective on how to best address fraud with forensic accounting.
Even if you think it could never happen to your organization, internal or external fraud can happen at any time.
A recent study found that 75 percent of employees admit to stealing from an employer at least once in their lifetime, and 57 percent of fraud cases are employee related.
Whether it’s a disgruntled former employee accessing payroll or a current employee doing a wire-transfer or theft of cash, it is critical for financial and operational data to be closely monitored and protected from internal and external threats.
When fraud does occur, it puts company leadership in a challenging position on how to best achieve restitution by pressing charges, which can be financially and reputationally costly.
In this podcast interview, Scott and Mike discuss how organizations can best mitigate and manage internal and external fraud through forensic accounting best practices.
Here are some key highlights from this interview:
- What forensic accounting is and what a forensic accountant typically does. (:35)
- Common situations or red flags that might lead an organization to hire a forensic accountant. (1:12)
- Positive outcomes of pressing charges if fraud is found. (3:13)
- Potential downsides to pursuing legal action. (4:25)
- How legal costs associated with pressing charges compare to the financial losses from fraud. (6:35)
- Other factors a company should consider when deciding whether to press charges for internal fraud. (7:30)
- Other options to address fraud other than legal action. (8:22)
- Examples of cases where the prosecution has led to significant changes in company policy or culture. (9:05)
- How GSG can help. (10:35)
Be sure to check out this Financial Services Review article about GSG’s Forensic Accounting services.
In addition, if you believe that your organization has been a victim of fraud, please contact us here.
Categories: Podcast, Audit & Accounting
