How to Spot a Fraudster

A super sneaky fraudster purposely deceives us by figuring out the gaps in controls and then covering their trail. They want to keep the assets they stole and invent creative ways to trick an unsuspecting auditor into believing everything is just fine.

Boy, do I have some interesting stories to tell and I’m sure you do, too!

Both the AICPA and the GAO mandate a number of due diligence steps in their auditing standards intended to help the auditor detect fraud within their limited audit scope.

I know, I know. You’ve read those steps a thousand times, so here is a quick list to read on how to spot a fraudster. Share this post with your colleagues or print out the PDF version to distribute at your next meeting. Just don’t get caught by surprise!

How to spot a fraudster

• Shift the Blame: Mistakes are never their fault. They are often poor performers and turn hostile and defensive when accused.
• Block Oversight: “Nothing to see here!” insists the fraudster. Only their co-conspirators have insight into what is really going on.
• Kissy-Kissy With Vendors: So, they are the only ones who can talk to the vendors? Why is that?
• Living High on the Hog: How did they afford that nice house, new car or shiny Rolex on their salary?
• Live at Work: Fraudsters always seem to be at work and shun vacations to avoid detection.
• Bully Colleagues: Fraudsters bully co-workers and bosses alike to keep them at bay.
• Can Access the Dough: Their role allows them access to resources so that they can steal their employer blind.
• Engage in Bad Habits: Did you hear they are having an affair or indulging in drugs? That stuff’s expensive.

Want to learn more?

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