Fraud represents a significant risk that organizations must proactively address. According to the 2014 Report to the Nations on Occupational Fraud and Abuse, issued by the Association of Certified Fraud Examiners (“ACFE”), the average organization loses an estimated 5% of revenues each year to fraud. The Report to the Nations also found that the median fraud loss for organizations with fewer than 100 employees was $154,000, nearly the same as organizations with 10,000 or more employees (see graph below). This means that fraud has a disproportionately greater (and potentially more devastating) impact on smaller organizations. As small businesses expand, they often outgrow their existing processes and internal controls. By proactively addressing risk, you have the opportunity to fix problems before becoming a victim of fraud.

At Dean Dorton, we have a team of forensic accountants with a unique combination of credentials including Certified Public Accountant, Certified Fraud Examiner and Certified in Financial Forensics. Our team has decades of experience specifically with small businesses investigating fraud, identifying and evaluating fraud risk and designing controls to deter fraud before it occurs.

Who benefits?

■ Small to mid-size companies

■ Companies that are growing

■ Companies with limited accounting staff and resources

■ Owners/investors with limited involvement in the company

You are never too small to betargeted by fraudsters.

Are your internal controls strong enough?

BUSINESS ADVISORS CPAs CONSULTANTSLouisville

502.589.6050Lexington

859.255.2341

Preventing Fraud

To learn more about our internal control services contact Nick Lynch at 859.425.7635

or nlynch@deandorton.com

Our team is ready to help you take a step in the right direction in order to prevent fraud. Our experience will aid in customizing a plan that is right for you and our qualified team will create a strategy that best fits your needs — whether it be a one-time assessment or on-going periodic testing.

Typically our work plan consists of the following key elements:

1. Interview key employees and accounting personnel

■ Identify potential risks

■ Assess the significance and likelihood of occurrence

■ Identify existing controls to mitigate the risk

■ Evaluate whether controls are operating effectively

2. Review key operational and accounting documentation (financial reports, reconciliations, bank and accounting system user access rights, management reviews, employee handbooks)

3. Test internal controls through transactional testing and review of policies and procedures

4. Present observations and recommendations

5. Follow up and assist with implementation of control recommendations

6. Conduct on-going periodic testing as needed

Working with our internal controls team will benefit you and your business in more ways than one:

■ Improve internal controls surrounding accounting processes and procedures

■ Set a tone in your organization that fraud and unethical behavior will not be tolerated

■ Enhance the perception within your organization that fraud will be detected

■ Safeguard assets against waste, fraud and abuse

■ Improve on-going financial reporting to management and owners

■ Provide peace of mind to owners/investors with limited involvement in the company

■ Ensure financial transactions are authorized and properly reported

■ Ensure prompt filing of reports and tax returns to regulatory or government agencies