NSKT Global

  Even in organizations with anti-fraud programs, fraud can and does happen. To better understand the factors that can lead to occupational fraud, ACFE conducted the survey to identify the primary internal control weakness that allowed the fraud case to occur. The most common factor underlying occupational fraud in our study was a lack of internal controls; 29% of victim organizations did not have adequate controls to prevent fraud.   Another 20% of cases involved an override of existing internal controls, meaning the victim organization had implemented mechanisms to protect against fraud, but the perpetrator was able to circumvent those controls. Fraud Awareness Individuals with different levels of authority within an organization tend to have different amounts of access and influence, which can affect how they are able to perpetrate fraud. We analyzed how the internal control weaknesses varied by the perpetrator's position, as shown in Figure 30. Not surprisingly, a poor ton...