Prevent large cash losses from small business fraud
Leigh Redd Johnson, Holly R. Rudolph · Journal of Corporate Accounting & Finance · 2008
Abstract Over the past few years, the spotlight has been on large corporate frauds. These resulted from cash management systems devoid of adequate controls and governance. But about half of all frauds occur in small businesses—and the effect is often devastating. The average loss for any small business fraud scheme was found to be greater than in any other business‐size category. Since fraud generally starts small—even in large companies—everyone can benefit from sharpening their cash management fraud prevention. This article examines five cases of smaller frauds that could lead to large cash losses. And the authors give advice on how to better detect and prevent such frauds in the future. © 2008 Wiley Periodicals, Inc.