It is not uncommon to hear executives air concerns about possible exposure to internal fraud. In such cases, company owners are typically unable to put their finger on exactly what might be wrong other than having an uneasy feeling about a particular employee, or group of employees, a controller, a CFO, or another individual with access to company assets. Though there may be red flags of untoward behavior by employees ? unexplained spending, working odd hours, sloppy record-keeping ? company owners are generally at a loss as to how to explore potential fraud further.
Ratio Analysis: How to Find the Fraud Needle in the Company Haystack
The Legal Intelligencer
July 29, 2013