How companies can prevent, detect fraud from the inside

For small and medium sized companies, fraud schemes to create fake invoices and payments to vendors is fairly simple, if the right processes are not in place. According to an article written by Cecilia Locati in the Journal of Accountancy, these seven tips can help companies decrease the presence of fraud through the procurement process. …

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Prevent expense reimbursement abuse

Dishonest employees can see an opportunity to steal from the company through expense reimbursements. If you don’t have a strong travel and expenses policy that is routinely monitored and enforced, you open yourself up for the risk of expense reimbursement fraud. Some common examples of fraud schemes that impact everyday companies are: Double billing: seeking …

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Identity theft: how to stay ahead of fraud

Identity theft has become a huge issue in recent years. These thieves are taking your personal information and filing phony tax returns to try to make some quick cash. In order to fight against cybercriminals the IRS has launched a public campaign called “Taxes. Security, Together.” The IRS is doing everything they can to detect …

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W-2 verification: help the IRS fight fraud

In its continuing effort to fight tax refund fraud, the IRS is asking taxpayers and tax preparers to assist by using the new 16-digit W-2 verification code. If your 2017 Form W-2 includes a 16-digit verification code, IRS encourages you to enter it when prompted if using software to prepare your return. In addition, the …

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Protecting against phishing scams this tax season

Betty opened up her email and scanned through her messages. One in particular stood out, from the Internal Revenue Service (IRS), so she clicked on it and began to read. It appeared that there was an issue processing her refund, and the IRS needed some additional information from her. So, she clicked on the link …

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Teachers targeted in fraud scheme

When consumer activity increases substantially, with it comes the increase in consumer fraud. How are these fraudsters gaining access to consumer information? They do it by developing new schemes to get your personal identifiable information. The latest scheme targeted our teachers. Recently a fraudster did a little homework and created a fictitious email account in …

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Unintended consequences of employee incentive programs

The recent revelation regarding aggressive sales practices at Wells Fargo shocked the financial community and highlights some of the unintended consequences of employee incentive programs. Employers normally have the best of intentions when they roll out an incentive program. The desired result is a win-win situation in which revenues increase and employees are rewarded for …

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Management responsibility for employee fraud

Should management be held responsible for employee fraud? If British Prime Minister David Cameron has his way, they will be. England is considering expanding its “failure to prevent” law which currently covers bribery and tax evasion. Serious consideration is being given to include a wider range of crimes committed by employees, including money laundering and …

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Justice served to phone scammers

Since 2013 phone scammers have defrauded at least 15,000 people across the United States of over $300 million by impersonating IRS agents and immigration authorities and threatening them with arrest and deportation if they did not make the demanded payments. Last month the U.S. Department of Justice indicted 56 people with conspiracy and fraud relating …

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Understanding Government and Nonprofit Auditing Risks

School districts, townships, municipalities and special districts make up roughly 90,000 local government entities throughout the United States that require an audit by a CPA firm. Additionally, more than 1.5 million tax-exempt organizations in the U.S. also require an audit at year-end. Audits of these types of organizations require planning, testing, and reporting requirements to …

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