{"id":202,"date":"2020-05-06T00:00:31","date_gmt":"2020-05-06T00:00:31","guid":{"rendered":"https:\/\/www.thinkastute.com\/blog\/?p=202"},"modified":"2023-11-27T00:05:20","modified_gmt":"2023-11-27T00:05:20","slug":"heres-why-a-forensic-audit-is-essential-for-your-business-during-covid-19","status":"publish","type":"post","link":"https:\/\/www.thinkastute.com\/blog\/heres-why-a-forensic-audit-is-essential-for-your-business-during-covid-19\/","title":{"rendered":"Here\u2019s Why A Forensic Audit Is Essential For Your Business During COVID-19"},"content":{"rendered":"
COVID-19<\/a> is inducing a lot of stress for business owners. Economic hardships often pose a vast array of challenges; one of the key issues is heightened vulnerability. In fact, the Federal Trade Commission has issued warnings to businesses regarding fraud schemes related to COVID-19. However, many business owners don’t take into account the risk of internal fraud.<\/h5>\n
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How does COVID-19 put businesses at risk for fraud?<\/strong><\/h6>\n

There are three key reasons COVID-19 might put your business at increased risk for fraud.<\/p>\n

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  1. If your organization has suddenly transitioned into a work-from-home environment, there probably isn\u2019t sufficient protocol in place for proper checks and balances. Monitoring fraud becomes tricky when your entire team is operating remotely.<\/li>\n
  2. If you have downsized your organization – i.e., you had to let go of upper-level staff to curtail high salary expenditure – you are now engaging someone who is not as qualified for the job to fill this unforeseen gap. They may unintentionally or intentionally succumb to fraud.<\/li>\n
  3. Businesses who are desperately trying to cut costs right now often roll back on departments that aren’t revenue-generating, such as internal audits and compliance. This does away with anti-fraud defense programs at a time when pressures driving employee fraud are at an all-time high.<\/li>\n<\/ol>\n
    What sort of fraud might take place during COVID-19?<\/strong><\/h6>\n

    According to the Association of Certified Fraud Examiners (ACFE), the average organization loses 5% of its annual revenue due to fraud even during a “normal” year. Right now, the situation is even more severe; business owners are facing fear and confusion – as a result, they are lowering their guard. This is the perfect recipe for fraudulent activity! Right now, fraud may manifest in the following manner –<\/p>\n