Is your business being exposed to the risk of fraud?
As a result of advancement in IT in recent decades, there has been often a reduction in oversight of transactions within the accounting systems of the business. The following are suggestions that should be in place to reduce the risk of fraud.
These are examples and are by no means comprehensive. UBTA encourages every business to have a systematic internal audit review of control systems on a regular basis.

    1. Ensure there is segregation of duties to reduce the opportunity for fraud. Example only for purchasing cycle: ordering of supplies, checking supplies agree with purchase order, authorising suppliers invoice for payment, processing of payment to supplier. 

    2. Reporting all transactions over a fixed dollar amount to owners. (This would include transactions that were below the value which requires your authorisation);

  1. 3. Have regular cross-check to report transactions that are slightly below this amount, and looking for repetition. 

  2. 4. Reporting any changes to bank account payee details to business owners; 

  3. 5. Have unique user account IDs for each user operating on the bank account, and no sharing of details. 

  4. 6. Careful and considered control of who has access to details of bank operating permissions, to reduce scope for any rogue employee selling this information to criminals. 

  5. 7. Reconcile corporate bank accounts daily.

    1. 8. Implement process of random sampling checks without notice, including review of all transactions outside certain parameters. 

    2. 9. Ensure all staff take annual leave, as fraudsters resist taking leave in situations where they may be exposed in their absence. 

    3. 10. Pay all accounts on time, so the only amounts outstanding on a monthly statement are current month invoices. 

    4. 11. Check all credit notes and reductions of account receivables other than payment from customer.

If you have any questions or uncertainties about your control systems and processes, don’t delay in discussing it with a trusted advisor.