Both small and midsize companies can’t justify the financial cost of an internal audit department or even a financial audit. May times a company has just one person, either an office manager, controller, or accounting manager that handles all financial functions. Most fraud occurs via payroll and accounts payable and spans over many months or even years. The average loss for a small business is over $100,000 and can be devastating. It’s that trust in that one person that creates the opportunity for fraud within the business. We provide an affordable way to quickly analysis payroll and the cash disbursements for detection and prevention of fraud. We can do this annually, or quarterly.
Banks and Financial Institutions
Banks and institutions that loan money require certain covenants to be met to remain compliant with the terms of the loan. Field auditors and banks rely on management to provide an honest picture of the financial health. However, sometimes an extra, more in-depth analysis is needed to quickly provide more guidance to the field auditor. We review both the revenue/invoices and cash disbursements to aid the field auditor with their audit. We provide better direction and focus in certain areas of risk that adds an additional level of comfort for the auditor.
Other CPA Firms
Sometimes small and midsize CPA Firms do not have forensic accounting departments or internal resources available to provide a quick, compressive and affordable service. We provide a basic subscription and the access to Stray Dot enables that them to provide the level of service to support their client’s needs. Sometimes we are retained to quickly assess the situation for them. Afterwards, they can quickly get up to speed with the software’s fraud capabilities.
Litigation Law Firms
During the Discovery period when books and records are requested and supplied, they are not provided in the best form to detect and discover employee or partner fraud. This is not very helpful and requires a lot of work that needs to happen to identify possible fraud. Stray Dot can immediately organize and generate a report identifying the outliers and assist the attorneys in discovering the areas of potential fraud. This may save thousands of dollars and many hours of work. We work closely with forensic lawyers and accountants to provide a work product that is meaningful and helps identify legal issues for a successful outcome.
Insurance companies offering employee dishonesty or employee theft policies or bonds
Many insurance companies offer employee theft or dishonesty coverage. We work with underwriters to quickly run Stray Dot fraud detection analytics to detect for fraud and create a better level of comfort for fraud prior to an insurance policy being written. We also provide periodic testing to help with loss ratios. This saves both the insurance company and their clients from millions in potential losses.
Healthcare or Physician Practices
Small healthcare practices are especially susceptible to employee fraud. We provide services to all practice area but fined that dentists, podiatrists, eye doctors, and other solo and small group practitioners should have fraud detections services performed annually.
Construction and manufacturing
Construction companies have many projects open at one time, treasury management is hard to control, and bookkeeping is sometimes an afterthought. We can take the information in any form and generally provide a helpful report with regards to employee fraud. Payroll and accounts payable fraud occurs frequently within construction companies. With manufacturing companies there is an inherent risk due to the ability to hide financial losses in inventory and parts. A quick fraud detection analysis is worth the investment for the stakeholders.
Restaurants and Franchisees
Because absentee owners and multiple locations possess a high internal control risk, the ability for an employee to commit fraud is generally easier in this environment. A quarterly fraud detection analysis using Stray Dot is recommended due to the high turn-over of employees and the inherent risk level. We offer discounted pricing for quarterly reports.
Churches, Religious Organizations and Non-Profits and International Charities
Sadly, we see a large amount of fraud in this area. Internal controls are generally weak, stakeholders are not fully engaged, and the system relies heavily on volunteers. We provide fraud detection services that can identify the fraudulent activity within payroll and cash disbursements. We recommend quarterly analytics and provide highly discounted pricing for Churches and non-profits.