Unfortunately, non-profit organizations are not immune from fraud. Often times after a fraud has been committed, the organization can look back on the situation and recognize some red flags that should have raised some concern which could possibly have prevented a fraud or at least detected it earlier. I thought it would be helpful to present a list of red flags that may indicate that a fraud could be occurring in your organization.
These red flags don’t necessarily mean that someone is committing fraud; however, coupled with other indicators, the employee should warrant closer supervision, surprise internal audits, etc. You may also want to review your internal controls for any possible weaknesses. Being alert to these red flags can go a long way to preventing fraud and keeping your organization financially sound. (Note: This is the first in a series of posts about fraud. Check back for future postings.)
Posted by Donna MayesBack to articles