Fraud Risk Checklist

Does the owner open the mail?

Does the owner or outside accountant sign all the checks?

Is the person who handles cash different from the person who records the cash?

Are two or more people responsible for the accounting function?Are two or more people responsible for the accounting function?

Are financial statements prepared every month with year-to-date amounts along with comparison to the same period previous year and year-to-date?

Does the owner receive and review the financial statements each month?

Are copies of all adjusting entries presented to owner for review and approval?

Does the owner or outside accountant receive and open the bank statements before anyone else?

Is there a control that prevents a check number from being used more than once?

Does the Practice prevent use of check “signature stamp" ?

Does the company have a policy of not returning a signed check to the preparer of the check?

Are checks for credit card statements always signed with the supporting statement attached?

With respect to payment of credit card balances, is credit card number (last 4 digits) for credit card being paid always entered on check?

Is there a policy of not paying the direct payment to a credit card company for a balance on a credit card account owned by an employee and is policy followed?

Are checks to suppliers and vendors always signed with the original supporting documentation attached?

Are checks to employees for travel, expense, and other reimbursements always signed with the original supporting documentation attached?

Do all accounting staff and key personnel appear to be living within their means based on what is believed to be their household income?

Does the company monitor more closely employees known to be going through hardships (divorce, sick children, etc.)?Does the company monitor more closely employees known to be going through hardships (divorce, sick children, etc.)?

Is a verification of education and work history, made before hiring all employees?

Is a check for criminal and credit history check made before hiring all employees?

Is there a policy prohibiting employees from working longer than a year without taking a vacation of at least one week and is the policy followed?

Are blank check stocks controlled by owner?

Are cash and checks deposited daily?

Does the owner or outside accountant review payroll detail before it is submitted for funding?Does the owner or outside accountant review payroll detail before it is submitted for funding?

Is a list of active and terminated employees from the payroll system provided to the owner or outside accountant monthly?