How to Prevent Fraud

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prevent fraud in business

Businesses lose money all the time, and it is a common thing in the industry. One of the most common reasons why businesses lose money is because of fraud.

However, just because it is a usual happening doesn’t mean you will let your business lose all your generated revenue. This is why audit firms in Dubai highly advise companies to have their business be audited.

Fraud Explained in Brief

Fraud is a deceptive act of an individual for the purpose of personal gain.

Most people conduct fraud because they want to gain money or other sorts of benefits. Aside from money, fraud is opted to be done by some people to take a hold of important documents that they need to have but cannot do so without leaning on fraudulent means.

Tips for Preventing Your Business to be a Victim of Fraud

Policies for Everyone

Fraud is a big deal. There should be policies with regard to it. Impacts on a business and consequences for the criminals should be explained to employees.

You should be clear what you expect from your staff. They should be aware of that as well as what the ethics and conduct that your company upholds to maintain its integrity. Any violations that will happen will have its ramifications for those who are responsible.

Your policies should be clear on fraud and theft from little things (pens, papers, notebooks, etc.) to activities that can highly affect the whole business.

Background Check on Employees

It cannot be stressed enough how essential it is to do background checks on anyone that you are planning to hire. Looks can be deceiving and so are curricula vitarum. Managers should all be cautious with regard to whom they get onboard because one mistake in overlooking something as important as this may lead to revenue loss.

Outsourcing HR services for this is also advisable to ensure that whoever you interview has a clean job history.

Maintain Accurate Records

Every business’ records should be organized. You should have inventory controls if your line of business requires you to have products in your warehouses. You should check what comes in and goes out in terms of money and review anything that seems fishy.

Observe Your Account

Even if you are presented with documents for reports on your accounts, it is important as well that you do another checking using online banking. You only need to watch out for quite a few things such as activities that show you that you have transferred money to unknown recipients, personal accounts, or companies that you have never heard of.

Further points to consider can also be obtained from consultants in audit firms in Dubai with regard to this.

Audit Your Business

The audit may sound so tedious and lengthy but it is helpful to you and your whole company. Conducting audit every month or quarter can prevent fraud. This kind of audit should cover anything about cash, inventory, refunds, accounting and bookkeeping aspects, product returns, etc.

This kind of internal audit is should not have a fixed schedule so that you can be sure that no one is trying to doctor any information or data.

To know more about measures to prevent financial fraud visit Farahat Office & Co.

There are audit firms in Dubai that are providing services with regard to auditing your accounts and reviewing any data to ensure that you are not being a victim of fraud. Reaching them is advisable to safeguard your business.

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