Business Fraud Prevention Tips – November WBN Luncheon Follow-up

Darren Judd, CPA
Darren Judd, CPA

WBN’s November luncheon was held Thursday, November 11th at Rocky Mountain University of Health Professions in Provo and Dream Dinners catered the food.  Darren Judd and Jacob L. McClellan of Hawkins, Cloward, & Simister gave a great presentation on fraud prevention for businesses.

Fraud requires:

  1. The opportunity to steal
  2. The ability to conceal it
  3. A manner to convert the theft into something desired/wanted

By separating key responsibilities, you reduce the ability of fraudsters to steal and conceal their theft.  Additionally, good internal controls are a protection for your employees.

Jacob L. McClellan, CPA, CITP, ABV
Jacob L. McClellan, CPA, CITP, ABV

Some of the internal controls they recommended were:

  • Don’t use rubber stamps
  • Use dual signatures
  • Reconciliation functions must be separated
  • Analyze credit card charges
  • Review sales and production figures
  • Review customer account adjustments
  • Segregate duties/dual custody
  • Use your software’s functionality
  • Be involved! Manage your business!

Segregating duties is one of the key ways to prevent fraud.  Custody, recording, authorization, and reconciliation should be done by different employees.  If your business is too small to separate the duties, oversight will be crucial.  Feel free to contact Darren or Jacob if you would like a copy of the handout they provided.

Join us on December 9th for our annual holiday luncheon.  We will be at Thanksgiving Point and there will be great gifts and prizes as well as silent auction items to bid on.  Ali (ali@uvmag.com) is still looking for businesses (must be Chamber members) who would like to sponsor a table or provide items for the silent auction.  Seating is limited and this is our most popular luncheon, so register early to guarantee your spot.

Thanks to Xage Medical Spa, Authentic Turning Points, and Rocky Mountain University of Health Professions for sponsoring November’s luncheon!

Women's Business NetworkIf you or your organization would like to sponsor future events, your minimum $50 donation goes directly into the WBN Scholarship Fund and allows you a brief presentation to the WBN Luncheon attendees. For more information about this and future sponsorship opportunities, contact Ali Dyer at ali@uvmag.com.  Or you can bring a door prize of at least $5 value (in addition to any service discounts, if applicable) to the luncheon and we’ll mention your donation at the giveaway!

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