A typical organization loses a certain percentage of its annual revenue to fraud. Fraud occurs regardless of organizational size or type. Every organization is vulnerable to fraud. Fraud risk must be reduced as much as possible. Hence, preventing, deterring, and detecting fraud are crucial. Deterring and preventing fraud can be more economical than detecting, investigating and recovering from fraud after-the-fact. These anti-fraud measures must start at the top and be communicated to all levels of the organization. They must go beyond internal controls and must be implemented on a cost-benefit basis. address the following factors: Fraud risk Fraud risk assessment Employees behavioral expectations Fraud prevention policies and procedures Fraud detection policies and procedures Fraud deterrence policies and procedures Cost-benefit analysis.
