Danny F. Dukes and Associates, LLC believes that there are several keys to effective fraud prevention, but some of the most important tools in the corporate toolbox are strong internal controls. Equally important, though, are the company's attitude towards fraud, internal controls and an ethical organizational culture. Internal controls should not be thought of as "static." They are a dynamic and fluid set of tools which evolve over time as the business, technology and fraud environment changes in response to competition, industry practices, legislation, regulation and current economic conditions. When someone says, "We have great internal controls," they may have had great controls, but the environment has changed and they no longer have adequate controls. New systems, new regulations or changes in the way you do business can affect the quality of internal controls.
Danny believes that there are three elements of fraud:
Everyone has needs, which vary in time and circumstances. Needs, especially when sentimental, can really stress the moral compass. The moral compass is internal and cannot be controlled. So, the only element that allows businesses to minimize fraud is taking away opportunities though preventive and detective controls. People change over time. The changes are not often obvious. However, adequate internal controls will negate the need to interpret these changes.
AtDanny F. Dukes and Associates, LLC, we will evaluate your internal controls, review them for adequacy and help you minimize the probability of fraud.
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