BusinessCompany NewsSMEs may be hit hardest by fraud

SMEs may be hit hardest by fraud

Small businesses that have no formal procedures in place to prevent and detect fraud may be more at risk than multi-nationals, according to a report from CIMA

SMEs can be hit by proportionately higher losses from fraud, which can be
hard to cope with in the current climate, the institute warned.

In the survey of 200 of
CIMA’s
finance director members in the UK, 55% felt their organisation was at risk of
employee fraud.

Helenne Doody, innovation and development specialist at CIMA, said: ‘Despite
the serious risk that fraud presents to business many organisations still do not
have formal systems and procedures in place to prevent, detect and respond to
fraud.’

CIMA has published a guide to help management accountants detect fraud in
small businesses. The guide covers IT systems, assessing fraud risks,
‘whistleblower’ procedures and the auditor’s responsibility to spot fraud.

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