PracticeAccounting FirmsSmall businesses get fraud warning

Small businesses get fraud warning

Small businesses are being warned to be extra vigilant in their fight against fraud, especially during times of rapid growth.

The Fraud Advisory Panel, supported by the ICAEW, says small and medium sized enterprises often miss the danger signs especially when business is booming and warns opportunities for fraud can increase with the growing use of outsourcing.

The introduction of stakeholder pensions also poses a serious threat to SMEs, according to the Panel.

The Fraud Panel’s Mark Prentice said: ‘Much has been written about fraud in big business – there is much less advice for directors and managers in SMEs.’

Recent studies show small businesses often overlook signs of fraud such as cash flow changes, stock shrinkage and customer complaints.

Stakeholder pensions could also create problems in the future with the introduction of new payroll procedures and cash transfers to pension providers.

To help small businesses protect themselves, the Fraud Panel has now published a set of guidelines, covering issues such as recruitment, training and whistle-blowing.

As Prentice said: ‘The risks need to be understood and managed.’

Related Articles

British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

2w Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

2w Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

2w Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

3w Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

1m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

1m Fergus Payne, Lewis Silkin
EY, Deloitte lead Big Four in gender pay gap reporting

Accounting Firms EY, Deloitte lead Big Four in gender pay gap reporting

2m Emma Smith, Managing Editor
Mind the gap: what accountancy firms should be doing ahead of the new gender pay gap reporting rules

Accounting Firms Mind the gap: what accountancy firms should be doing ahead of the new gender pay gap reporting rules

2m Karen Baxter, Lewis Silkin