A solid foundation in fraud prevention, detection and deterrence.
It’s estimated that organizations lose about 5% of their revenue due to fraud related activities every year. However the normal external and internal audit functions may not necessarily be able to uncover areas of fraud due to the fact that fraud by its nature is normally concealed. As a result, most organizations get to detect fraud occurrences when the damage has already been done. This has resulted to several organizations being victims of fraud despite vibrant internal and external audits throughout the years.
Frequently Asked Questions
- Who is a CFE?
CFE stands for a Certified Fraud Examiner which is a global certification granted by the Association of Certified Fraud Examiners which is the examining body for fraud examiners.
- If our organization has an external and internal auditor, do we still require a CFE?
Yes, a CFE plays a unique role in dealing with various aspects that concern fraud which cannot be addressed by either an external or internal audit. Both external and internal auditors are not primarily trained to examine fraud or investigate the same. It is a distinct profession different from both the external and internal auditing.
- Is fraud a risk to organizations?
Research has shown that on average, organizations lose about 5% of their total revenue due to fraud but given that fraud is normally concealed; many organizations do not appreciate the magnitude of this threat. In addition, there are several incidences of fraud being reported in the media.
- What is the impact of fraud to organizations?
Fraud obviously affects the bottom line and eats in to the profitability of the organization. In addition it affects the reputation of the organization particularly those in the financial sector.
- How should organization deal with this challenge?
The first step is to consider the services of CFE who are specifically trained in a number of areas affecting fraud including:-
- Helping organizations develop a comprehensive fraud policy
- Fraud risk assessments
- Reviewing the internal controls and recommending on areas of improvements
- Creating awareness among employees on fraud and its impact to employees and organizations as a whole
- Offering tailor made training to audit committees of the board
- Offering surprise forensic audits
- Fraud investigations