Which Anti-Fraud Controls Actually Help Detect Fraud?

The newly released 2016 Report to the Nations on Occupational Fraud and Abuse issued by the Association of Certified Fraud Examiners presents the top anti-fraud controls reported in fraud cases.

Some of the listed controls are deterrents, such as codes of conduct or anti-fraud policies. Others are detection methods.

I compared anti-fraud controls to initial detection methods from the same report and found that control measures were responsible for 73 percent of detections. This included the three most common methods of detecting occupational fraud:  hotlines, internal audit and management review.

Frequency of Anti-Fraud Controls – United States

A notable observation from this comparison is that barely half the entities used a hotline as an anti-fraud control, yet a hotline is cited as the most common way fraud is detected—more than twice as common as internal audit, the next most frequent detection method.

The data strongly suggests that a hotline is the best weapon in your organization’s anti-fraud arsenal. Do you have one in place?

If not, BKD can help you provide a confidential way for employees and vendors to report suspicious activity as a part of your company’s anti-fraud program. Learn more about IntegraReport.

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A member of BKD’s Forensics & Valuation Services division, Julia provides forensic accounting, fraud investigation and litigation support services. Her 14 years of public accounting experience include audit, tax, due diligence, business valuation and Sarbanes-Oxley internal controls documentation.

Julia’s forensic investigative experience includes fraud investigations for clients ranging from small private companies to large health care systems. Her reports are tailored to the end user, including law enforcement, senior management, opposing counsel and insurance agencies.

Julia Mast – who has written posts on BKD Forensics.


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